Refurbishing Industry Is Bouncing Back

IN AN UPFRONT CONVERSATION, KETAN GIRAP, GENERAL MANAGER, KEY ACCOUNT BUSINESS UNIT, NIPPON PAINT INDIA AUTOMOTIVE REFINISHES, SPEAKS TO ASHISH BHATIA ON THE REFURBISHING INDUSTRY AS A WHOLE BOUNCING BACK.

- ASHISH BHATIA

Q. At the business end of the FY2022, what is the outlook for automotive coatings across segments from a short to medium-term perspective?

A. With the Covid-19 situation improving, accompanied by a favourable market scenario across the automotive sector and the government's thrust to infrastructure and Electric Vehicles (EVS), the market for automotive paints is expected to observe a decent growth in a demand. We expect to reach the pre-pandemic levels in terms of business value. From a long-term perspective, we see a lot of positive trends due to various policies such as the new scrap policy and the changing market dynamics. As Covid19 ebbs and normalcy is restored, India's automotive paints industry is poised to bounce back. As per recent industry estimates the Indian automotive paints and coatings market is expected to grow at a Compounded Average Growth Rate (CAGR) of over 30 per cent during 2021-26.

Q. Your take on the aftermarket for paint and consumable solutions?

A. India's automotive industry has experienced a sharp rise in the sale of used or second-hand vehicles. During the past couple of years, the secondhand market has taken a driver seat and is in fact expected to exceed the new car sales in a few years. As per a recent industry report, the used car market in India is expected to reach a volume of a whopping 70 lakh units in 2025-26, from 38 lakh units in 202021. This sharp growth across the used vehicle segment will further trigger the growth of automotive paints and consumable solutions as well.

Q. What is the outlook for industrial coatings for the coming years?