China Drying Newsletter The famous American growth consulting company Frost & Sullivan issued a research report in December and believes that with the continuous growth of Mexico's economy, the government's stimulation of domestic consumption and export pull, and other factors, the Mexican automobile market will be The rapid growth has led to the development of the automotive paint market in Mexico.
Automotive coatings generally fall into two major categories, namely automotive OEM coatings and automotive repair coatings. At present, Mexico’s automotive coatings are in a growth phase. In 2011, the market scale of total sales revenue reached US$327 million, an increase of 6.0% over the previous year. It is estimated that by 2017, the market size can reach 408 million U.S. dollars, and the compound annual growth rate of 2011-2017 can reach 3.8%.
From a market structure point of view, Mexico's automotive coatings are mainly OEM coatings, accounting for 64.4% of the market share, while automotive refinish paint accounted for 35.6% of the share. It is estimated that the market scale of Mexican automotive OEM coatings will reach 266 million U.S. dollars in 2017, which is a 26% increase from 2011 sales of 210.7 million U.S. dollars; the market size of auto refinishes will reach 142 million U.S. dollars, an increase from 2011 of 116.3 million U.S. dollars. twenty two%.
The Mexican paint market is driven by a number of favorable factors: First, the government's credit stimulus policy has driven the growth of the automotive coatings market. Credit spending in Mexico in 2011 increased by 17.9% from the previous year. At the same time, Mexico’s economic recovery and rising consumer confidence index have stimulated people to buy cars. According to the automotive industry data, each car production requires about 12 liters of paint. This means that the demand for automotive coatings will increase proportionally. Second, the growth of Mexico’s national economy has driven automotive paint consumption. Over the past decade, Mexico’s GDP has grown at an average annual rate of 6.1%, and this trend will not change much in the future. With the gradual recovery of the global economy, the next round of economic growth in Mexico has begun, and the prospects for the growth of automotive coatings can be expected. Third, exports have driven the growth of automotive coatings. Mexico’s auto exports are gradually increasing in recent years, which will also be a driving force in its automotive coatings market.
At the same time, the development of the automotive paint market in Mexico also faces some obstacles. First, it relies heavily on the North American export market. Mexico’s auto exports account for more than 80% of the total, and nearly 35% of its products are exported to the United States and Canada. In 2009, the automotive industry, which relied heavily on exports to Mexico, caused great harm. In that year, Mexico’s car production fell by 29% in one year. In other words, any impact from the North American economy could harm the Mexican automotive industry and hurt Mexico's automotive coatings market. Second, poverty impeded the growth of the automotive paint and coatings market. Because car consumption is still unable to penetrate ordinary Mexican consumers. If the car is not sold, there will be no paint demand. Third, auto purchase tax hinders the development of automotive coatings. Purchasing new cars in Mexico requires a higher tax on car purchases and curbs Mexican car demand, which is one of the reasons why the local car market has not grown substantially. However, it is expected that this factor will not affect the market in the long term because Mexican MPs are recommending tax relief.
Taken together, the Mexican automotive coatings market will continue to maintain a good momentum of development in the future. Mexican automotive coatings will become more environmentally friendly, and more and more paint manufacturers are using water-based formulations to produce coatings.
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