Potential of automotive-related coatings in China

Citation

(2007), "Potential of automotive-related coatings in China", Pigment & Resin Technology, Vol. 36 No. 5. https://doi.org/10.1108/prt.2007.12936eac.004

Potential of automotive-related coatings in China

Potential of automotive-related coatings in China

Information Research (IRL) has published a new study covering the Chinese industrial coatings sector, entitled Potential of Automotive-Related Coatings in China. This new study provides a characterization of the Chinese industry and markets for automotive OEM coatings, refinishes, powder coatings and plastic finishes.

Chinese vehicle production more than doubled over the period 2001- 2005 but vehicle ownership in China has not quite managed to accomplish the same feat. Figure 1 shows current and projected vehicle ownership in China.

Figure 1 Chinese automotive ownership, 2000-2020 (Thousands)

Future growth in the Chinese automotive sector will be influenced by:

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  government initiatives on fuel consumption which will prompt replacement of vehicles;

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  increasingly liberal currency and credit policies;

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  popularity of small-capacity vehicles; and

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  rising affordability as low-end vehicles are put within the grasp of more of the population.

The automotive sector is also the second-largest consumer of coatings for plastics in China, whose spread of applications is best shown in Figure 2.

Figure 2 Chinese production of coatings for plastics by end-use sector, 2006 (percent)

From among the other consumer goods illustrated, the following future trends are expected to drive production and coatings consumption:

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  finalization of the 3G mobile phone standard for China;

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  rising production and exportation of desktop and laptop computers;

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  selection of educational toys for Chinese children, which have historically been limited (Per capita spending on children's toys in China is only 1 percent of that seen in the USA, conferring enormous potential on the market);

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  footwear and sports goods will be increasingly popular in the near-term, growing in tandem with the approach of the 2008 Olympics; and

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  rising competition in the white and black goods sectors.

Dr Terry Knowles, Business Manager at IRL, said “China and its population continue to exert enormous attraction for manufacturing investment and with this report IRL has been able to offer a characterisation of several growth markets and coatings sectors, not just in the automotive sector, but also by examining sectors such as telecommunications, footwear, white goods and small electrical items. Potential of Automotive-Related Coatings in China should provide companies with an interest in the finishing of consumer goods in China with a helpful overview of their target markets, their future development and potential.”

Potential of Automotive-Related Coatings in China (pp. 165 and 112 tables) is now available from IRL, price e2,750.

Sections from the report, priced individually, will soon be available to purchase online at IRL's web site: www.informationresearch.co.uk

For more information on this report, please contact: Terry Knowles, E-mail: tknowles@brg.co.uk

Information Research (A Division of BRG UK Ltd), CP House, 97-107 Uxbridge Road, Ealing London W5 5TL, UK, Tel.:+44 (0) 20 8832 7830, web site: www.informationresearch.co.uk, Fax: +44 (0) 20 8566 4931, E-mail: irl@brg.co.uk