The hottest automotive coating market in Argentina

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Argentina's automobile coating market grows rapidly

september 3, 2013 news: what is the situation of Argentina's automobile coating market? In 2012, the sales volume of the automotive paint and coating market in Argentina was about 195million US dollars. It is estimated that by 2017, the annual sales volume will reach about 353million US dollars, and the compound annual growth rate will reach 12.6%. Argentina has a high market concentration in the automotive paint and coating market. In 2011, 86.0% of the market share was held by three major companies. In Argentina, the paint and coating industry can be divided into construction use and industrial use, accounting for 75% and 25% of the market shares respectively. In the whole industrial market, the automotive paint and coating sector accounted for the largest part, contributing 8.1% of sales and 8.7% of sales respectively. In 2011, the market value of automotive paint and coating in Argentina was 174million US dollars, which is expected to reach 353million US dollars in 2017, with an average annual compound growth rate of 12.4%. The automotive paint and coating market can be divided into two sectors: Automotive OEM (48.1%) and automotive touch up paint (51.9%). The automotive paint OEM market is mainly driven by the expansion of the automotive industry. Each car needs about 13.5 liters of paint. The growth of automotive touch up paint market is closely related to the growth of automobile fleet and the insurance coverage rate of automobile insurance. Argentina maintains the highest auto insurance rate in South America

it is estimated that from 2012 to 2017, the growth rate of automotive touch up paint market will be faster than that of automotive paint and coating OEM market. The top five manufacturers in the automotive paint and coating industry in Argentina are DuPont, BASF, PPG, AkzoNobel and Sherwin Williams. Local producers also include sinteplast, color í N and tersuave. However, these companies have a small market share and only produce automotive touch up paint products. The main driving factors of the market are, first of all, GDP growth and economic growth. The demand for paints and coatings is affected by various factors. The most significant determinants are overall economic activity, the level of construction, and the number of specific end consumer products such as cars and furniture. The leading indicator of overall economic activity is GDP. Generally speaking, the sales of paint and coatings closely follow the overall GDP trend. From 2007 to 2011, the average annual compound growth rate of Argentina's GDP reached 8.9%. It is estimated that in the future, the domestic GDP will maintain an average annual growth rate of 3.6%. Although the economic growth rate will decline in the future, the automobile output is expected to increase with the paint and coating market

the growth of automobile production and accidents. From 2008 to 2011, the average annual compound growth rate of automobile production reached 12.1%, while the average annual compound growth rate of automobile sales was about 10.8%. Therefore, the total volume of automobiles is growing at an average annual rate of 7.4%. With the continuous growth of the total number of cars and the poor road and infrastructure conditions in most cities of Argentina, the incidence of car accidents and accidents has risen sharply. Therefore, the growth rate of automotive touch up paint also increased. In addition, Argentina maintains the largest auto insurance coverage rate (about 75%). Industry experts believe that about 80% of vehicle repairs in the parking lot are accepted by insurance companies. Therefore, due to the frequent repair of vehicles, insurance companies are not only price makers, but also promote the growth of the paint and coating market. In the past five years, the sales of used cars have also continued to grow. As used car owners need to repair the body paint before selling the car to maintain a certain price, this also promotes the development of the vehicle repair paint market. Therefore, due to the high retail price of cars in Argentina (compared with Mexico or the United States), car owners maintain their cars very well. The average service life of Argentine cars can reach 20 years

in terms of export growth, it can be regarded as the consumption demand of non domestic residents, so the increase of export can also be regarded as the increase of demand. A large number of automobile exports need more paint to meet the needs of the international market. It can be seen that the growth of automobile exports has led to the simultaneous growth of demand and output of paint and coatings. At present, about 61.1% of Argentina's automobile production is exported, mainly to Brazil and other Latin American countries. It is expected that Brazil's economy will maintain stable growth together with the surrounding regional economies in the future. Therefore, foreign demand will maintain a high level in the next few years. Government incentives for consumption and Industrial Development: Despite the steady growth of automobile sales and production in the past five years () (in 2009, there was a slight recession due to the global economic crisis), in the first quarter of 2012, this growth momentum slowed down, the domestic economy showed signs of cooling down, and the growth of automobile sales was lower than that in the same period of 2011. In order to cope with this situation, the Argentine government began to analyze and plan a new car sales stimulus plan after the implementation of the "my first new car" plan achieved positive results. The new plan requires the joint efforts of the government and automobile manufacturers. In the new plan, individuals will bear 50% of the down payment for the purchase of cars, and the remaining 50% of the funds will be jointly borne by the car manufacturer and the government social security along with the Volvo rear plate spring project. The program will initially apply only to low-end models

on the other hand, the "2020 national industrial plan" issued by the Ministry of industry and information technology in early 2012 will further stimulate automobile consumption. By the end of 2020, it is planned to promote the production of 1.9 million cars and 1.6 million patented cars. In order to achieve this goal, the government has promised to expand the production of domestic crude oil, natural gas, chemical and petrochemical derivatives by increasing the investment and creation of new industries, chemical and petrochemical clusters. In exchange, the government will restrict imports, encourage large, medium and small enterprises to produce locally and balance international payments. The main limiting factor is the dependence on exports from Brazil and Latin America: Argentina's automobile exports account for more than 60% of the total automobile manufacturing output. Nearly 80% of them are exported to Brazil. Therefore, any impact on the Brazilian economy may damage the automobile industry in Argentina. On the other hand, in order to achieve the goal of the "2020 national industrial plan", Argentina will need to expand its exports in the southern common market, especially focusing on the markets of Ecuador, Venezuela, Colombia, Chile and Europe. Import barriers: Argentina's automotive paints and coatings are mainly imported from Brazil and Mexico, and a small amount are imported from the United States and Europe. Although most respondents claim that they are not subject to great restrictions on the import of finished products, they are subject to restrictions on some raw materials, printing color charts (or templates) and capital assets. Therefore, inventory management and a perfect supply chain system are crucial, especially in the touch up paint segment. In the medium term, due to the national government's intention to develop a self-supporting industry and the need for trade balance of chemical and petrochemical products, import restrictions are likely to be further strengthened. Therefore, it is necessary to invest in the production and production capacity of local polyurethane insulation material enterprises and preparation equipment enterprises, which account for half of the country

in addition, there is a lack of local infrastructure and independent industries. At present, only BASF produces automotive paint locally, although these are only low-end products in the paint and coating market. The rest of the paint and coating products are imported as raw materials for the production of solvents, resins or fillers. The lack of infrastructure and production capacity in Argentina is a huge limiting factor for the growth of the paint and coating market. If the paint and coating market grows as expected, the dependence on imports will also grow at a corresponding rate. At the same time, it also depends on the good operation of the economies of Brazil, Mexico and Europe. If the economy of these places is impacted or declined, the local industry will not be able to meet the needs of the automobile industry. In addition, as the paint and coating market is completely dependent on imports, if the prices of raw materials and crude oil rise, the prices of paint and coating will continue to rise. Therefore, the development of independent industry is very important for the development and growth history of the paint and coating market. In the long run, if the goal of the "2020 national industrial plan" is fully achieved, the problem of industrial independence will be solved. Lack of R & D and environmental restrictions: most paint and coating manufacturers are multinational enterprises. Usually, the decision-making and R & D activities of these companies are carried out in foreign headquarters

in contrast to many other regions such as North America and Europe, Argentina does not enforce the use of volatile organic compounds and zero emission paint coatings. Therefore, even imported products, such as paints and coatings produced by Valspar debeer, can be sold in Argentina, but this is prohibited in the European market. Argentina is still very deficient in R & D. at present, R & D activities are mainly concentrated in the construction and building materials segment, which accounts for 75% of the paint and coating market. These problems have restricted the export possibility of Argentine paint and coating industry. If more countries adopt environmental protection regulations to prohibit the use of paints and coatings that emit high volatile organic compounds, it will be a greater restriction in the future. Finally, the water-soluble paint and coating quickly gained market share in the high-end market, and is expected to continue to grow and lead this segment in the medium term. Industry experts claim that companies that master this technology will have the best market position in the future. In 2011, about 98.5% of the total sales revenue of automotive paint and coating market came from the top five companies. BASF led the automotive paint market in 2011 with a sales revenue of 85.6 million US dollars (market share of 49.1%). The company is the leader in the OEM market and the only local production company at present. Due to continuous investment in product development, the market share is gradually expanding. PPG ranks second with a market share of 24.3%, and is also the leader in the automotive touch up paint market

dupont ranks third in both the OEM market and the automotive repair paint market, accounting for 12.6% of the market share. As the universal testing machine (auto parts testing machine) produced by Dupon Shanghai Yihuan instrument is widely used in rubber, plastics, textiles, wires and cables, composites, leather, waterproof coiled materials, non-woven fabrics, geotextiles, paper and other non-metallic materials, as well as metal wires, metal foil Tensile, contraction, zigzag, shear, peeling, tearing and other mechanical properties of metal materials such as metal plates and metal bars. T company has built a new plant in bunois Ellis, which is specially used to produce automotive touch up paint. It is expected that DuPont's market share will expand in the future. AkzoNobel and Sherwin Williams ranked fourth and fifth respectively. These two companies have high market penetration in low-end automotive touch up paint products with their respective Wanda and lazzudur/baco brands. Industry trends and forecasts: in the next five years, the four global and macro trends will have an impact on the Argentine automotive paint and coating market. According to the size of the impact, they are: Population Development: the growing middle class, more and more young groups, as well as the expansion of women's power and the aging population, will all affect the diversity and personalized production of paint and coating; Urbanization: in the process of urbanization, the demand for automobiles and public transport will continue to expand, thus promoting the development of the automotive paint market; Overseas markets and new markets: Although products and strategic decisions are now made overseas, foreign companies have established R & D centers in Argentina and developed the trend of local strategies to replace imports; Smart Green Revolution: the demand for environmentally friendly products will drive manufacturers to produce more renewable paint coatings, while

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