India has Emerged as an Important Hub of the Automotive Industry in Global Markets and Close to Home, The Asean Region, How is it Impacting the Automotive Coating and Refinishing Business in General?
The growth of the automotive industry in India and the ASEAN region has had a positive impact on the automotive coating and refinishing business. The increase in the number of cars on the road, or units in operations (UIO), has resulted in overall growth for the refinishing industry. Additionally, the second-hand car market is also growing as people are upgrading from two-wheelers to four-wheelers. OEMs are shifting from solvent-based products to water-based technology, which not only helps drive sustainability but also provides a better finish. This trend is beneficial for the industry in India and the ASEAN region.
What Kind of Set-up/Presence Do you Have in India?
Our offices, distribution network, and technical training centers span across India. We are the approved supplier for almost all OEM refinish body shops. We work with our widespread distribution network to meet the needs of OEM body shops / independent body shops. In addition to our offices in Gurugram, Mumbai and Bangalore, we have a manufacturing facility in Savli, Vadodara.
To support and train our customers, we have training centers located in Savli, Manesar, Kolkata and Bangalore.
Give an Overview of the Automotive Coating and Refinishes Market in India.
The increased new car sales and vehicular traffic provide significant opportunities for the automotive coating and refinish market, which may experience significant growth. Thanks to the focus on sustainability, technology is also shifting to water- borne products. Spectrophotometers have helped match new colors and color effects like pearls and metallics faster. The industry is building more efficiency in the entire repair process.
What was Your Turnover In 2022?
Globally Axalta Coating Systems’ annual net sales for 2022 were US$4.9 Bln.
What are Your Expectations for the Current Year?
Our expectations are promising as car sales were strong last year leading to increased car park. The surge in national highways has helped vehicle movement and mileage. We are also closely tracking global changes that could have some impact on the robust growth in the Indian market.
Who are Your Major Competitors?
In India, the automotive coatings industry is highly competitive, with active participation from global, regional, and local players. These companies compete in providing a wide range of coatings and solutions for the automotive sector. The presence of both global and local players fosters a dynamic and competitive environment in the Indian automotive coatings industry. Axalta has been at the forefront of providing industrial and automotive coatings and supporting the refinish, transportation and industrial segments. In India we serve the aftermarket collision repair needs of all the key Indian, Japanese, Korean, European, and American car makers and also serve independent body shops.
Cromax, Standox, Duxone, and Nason are a few of our key refinish brands. With regards to waterborne systems, the first product we introduced in India, was the Standohyd brand in 2011, and in 2014 we introduced the third generation from the Cromax Pro and Standoblue product lines.
What’s the USP of Your Products?
We provide user-friendly products that can be applied with minimal training and in a cost-effective way. Our third-generation water-based system, Cromax Pro and
Standoblue provides customers with the highest productivity and cost advantage. This has helped us increase our market share significantly.
Are the Coating and Refinishing Products Made in India or Imported?
Many of our coating and refinishing products are manufactured in India by Axalta, while the remaining products are imported from their different plants in Europe and other locations.
How are the Products Suited to India’s Harsh Conditions?
Axalta’s products are well-suited to India’s harsh conditions because they undergo rigorous testing in various temperatures and weather conditions, including coastal areas, dry areas, and cold weather, before being launched in the market. As a global organization, Axalta has an advantage in conducting tests and simulations to ensure that its products are fully tested and meet the demands of customers in different environments. The existing product range has been well-accepted and appreciated by customers for the past 25 years, and Axalta has not faced any challenges with its products in the country.
Are you doing Business with Just OEMs in India? If So, Who are Your Clients?
Axalta does have approval from all major OEMs present in India and also does business with independent body shops and retail shops. These independent body shops are supported through Axalta’s distributors and retail segment.
With Emerging Private Aftercare Service Providers with Paint Shops or Booths Catering to Premium or Luxury Cars, Do you Cater to Them as Well?
Yes, we cater to all luxury brands also.
Are You also Exporting Your Products to Other Regions, Especially ASEAN Countries?
Yes, we do export our products to various regions, including ASEAN countries. Our manufacturing plant has the capability to cater to the needs of other countries, and we have successfully exported to several ASEAN countries as well as Australia and Japan.
Most Paints Contain VOCs. How Green are Your Products?
The usage of environmentally responsible paints and coating products has gained a share in recent years. A significant part of this demand has been driven by environmental regulations and larger paint and coating suppliers in India have started to invest in sustainable solutions over the last few years.
Axalta is committed to sustainability and reducing the environmental impact of its products. Our waterborne products are designed to have low VOC emissions and comply with global standards.
In addition, we have a range of eco-friendly products that meet the needs of customers who are looking for sustainable solutions.
Are any Sustainability Programmes Underway to Offer Green Products Like Water-based Paints etc.?
Sustainability is central to Axalta’s business. From environmental and social performance to the sustainability benefits our products and services provide and our strong corporate governance practices, being an engaged business partner and a good neighbor are fundamental to our growth and success.
Our manufacturing facilities around the world continually enhance their processes to minimise our impact on the environment. Many Axalta products and application technologies are developed to support not only our own sustainability goals, but also those of our customers by increasing productivity and reducing emissions, energy use, and waste. We engage with a variety of stakeholders including customers, suppliers, investors, industry organisations, non-governmental organisations, and others to listen, learn, and find ways to continually improve our performance.
As a leading global supplier of liquid and powder coatings, we embrace our responsibility to identify and deliver solutions that will produce a more sustainable environment and business. Our solutions-oriented approach reflects the critical role we play as partners in helping our customers accelerate their own sustainability initiatives and achievements.
Our 2030 ESG goals reflect how meaningful environmental progress, inclusive social values, and strong corporate governance are at the heart of Axalta’s operations and success. We have aligned our goals-structured under three key pillars –
to a targeted selection of the U.N. Sustainable Development Goals. Planet Solutions, Business Solutions and People Solutions.