Market Trends of India Automotive OEM Coatings Industry
This section covers the major market trends shaping the India Automotive OEM Coatings Market according to our research experts:
Passenger Vehicles Dominate the Market
- Automotive OEM coatings are generally used in cars and other automobiles for protection and adornment.
- In India, The Automotive industry is one of the largest manufacturing sectors in the country and contributes about 7.5% to the nation's GDP. In 2021, India became the third-largest automobile market and the fifth-largest light commercial vehicle manufacturer.
- The Increasing Demand for passenger cars in the automotive OEM Coating is expected to increase due to the gradual shift of consumers from convenient transportation to a luxurious and safe ride.
- The Automotive OEM coatings for passenger cars are estimated to have an upside demand in the forecast period. For instance, due to COVID-19, passenger car production in 2020 declined by 22% compared to 2019. However post, COVID-19, due to the recovery of the passenger car market, the production of passenger cars in the country reached 3.63 million units in 2021, which shows a recovery of 28% compared to 2020.
- Furthermore, Increased investments and advancements in the automobile industry in India are expected to increase the consumption of Automotive OEM coatings.
- For Example, In April 2022, Tata Motors announced plans to invest USD 3.08 billion in its passenger vehicle business over the next five years. This is expected to positively impact the production of Auto OEM coatings in the country.
- All the factors above are expected to act as driving factors for the Automotive OEM coatings market during the forecast period.
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Water-borne Coating Dominate the Market
- Although solvent-borne technology accounts for most of the market, it is predicted to grow slowly over the forecast period.
- Regulations governing VOC emissions from hazardous air pollutants contained in solvent-borne automotive OEM coatings such as toluene, xylene, ethylbenzene, and methyl ethyl ketone are one of the major factors limiting the expansion of solvent-borne automotive OEM coatings.
- Water-based automotive OEM coatings are becoming increasingly popular due to the continuously changing environmental regulations. Water-based coatings are constantly developing to provide the same performance as solvent-based coatings. For example, mild co-solvent reducers and additives are being developed to improve water-based coatings' performance and drying times.
- The increasing adoption of waterborne automotive coatings is due to their physical and chemical qualities, such as high chemical resistance, low processing temperature, and solvent-free formulations.
- Owing to above mentioned factor, waterborne technology is expected to grow significantly during the forecast period.
