Why Are OEMs and Aftermarkets in Indonesia Using Automotive Refinish Coatings?

The International Organization of Motor Vehicle Manufacturers (OICA) states that 139,886 commercial vehicles and 551,400 cars were manufactured in Indonesia in 2020. OICA further mentions that the country recorded sales of 388,925 passenger cars and 143,152 commercial vehicles in 2020. Original equipment manufacturers (OEMs) and aftermarkets across Indonesia are using refinish coatings on passenger cars and commercial vehicles to increase vehicle age and enhance the aesthetics of such automobiles. Apart from commercial vehicles and passenger cars, such coatings are also applied on two-wheelers for protective and decorative purposes. 

Thus, the escalating automobile sales in this Asian country, primarily on account of the mounting disposable income of people, will help the Indonesian automotive refinish coatings market progress at a CAGR of 4.9% during forecast period. The market revenue stood at  $240.2 million in 2017 and it is expected to reach $336.6 million by 2023. Apart from observing the booming sales of new automobiles, the country is also witnessing a spike in the sales of second-hand vehicles from pre-owned car dealerships. Thus, the rising prevalence of such sales will also amplify the demand for automotive refinish coatings in the country in the coming years.

Nowadays, automotive refinish coating producers, such as PT. NP Auto Refinishes Indonesia, PT. Hartwell Paint Indonesia, Akzo Nobel N.V., KCC Corporation, PT. Anugerah Berkat Cahayaabadi, The Sherwin-Williams Company, BASF SE, and PT PABRIK CAT DAN TINTA PACIFIC PAINT, are offering clearcoats, primers and fillers, and clearcoats to OEMs and organizations operating in the automotive aftermarket in Indonesia. At present, the OEMs and aftermarket companies are preferring clearcoats over other variants, due to their ability to enhance the resistance of the part to the damage caused by foreign substrates and fluids.  Additionally, these coatings are applied over basecoats and metal bodies to prevent cracking and peeling of paints on vehicles. 

According to P&S Intelligence, West Java dominates the Indonesian automotive refinish coatings market. This is due to the presence of a vast customer base, several metropolitan cities, high-volume product demand from the automotive industry, and rapid macroeconomic growth in the region. Moreover, the existence of a large number of body repair shops in West Java will also fuel the consumption of automotive refinish coatings in the region in the forthcoming years.

Thus, the mounting automobile sales will augment the need for automotive refinish coatings in in Indonesia in the foreseeable future.

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