The automotive segment is bifurcated into OEMs and auto refinishes and is one of the fastest growing sub sectors in the Indian Industrial paint markets. The OEM market is the most predominant one where the action has been remarkable in the last few years, with almost all the major automobile companies setting up manufacturing operations in India. The refinishing paint system includes coating systems for passenger cars, commercial vehicles, and two-wheeler markets. This market has been demanding exacting coatings for their end products. This has forced the Indian paint manufacturers to join hands with international paint companies to provide quality coatings. The demand for automotive refinish paints is closely correlated to the growth of the industry in particular and economy in general. Propelled by the growth in the economy and various other factors, the markets for the refinish systems have also grown in leaps and bounds taking the total refinish market to over INR 520 crore which constitutes for over 20% of the total Automotive coatings market in India. This study deals with the internal, external and competitive analysis of Akzo Nobel Car Refinishes India Pvt Limited.
Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel. DuPont Autorefinishes is a part of DuPont Performance Coatings, which is in turn a part of E.! DuPont. DuPont is one of the largest Fortune 500 companies in the world.
[...] (Source Business Today) Market Size The present auto refinish paint market in India is valued at over INR 520 crore. The market has been growing at a rate of 22-25 percent for the past few years and is expected to grow at a higher rate due to the increase in number of vehicles and various other factors, which has driven the automobile sales in India. The chart below gives an overview regarding the growth in Indian Automotive refinishes market over the last few years. [...]
[...] Distribution Channel in Automotive Refinishes One important feature of this industry is that, the customers and vehicle owners are not the decision makers of the brand of paint and the system. The selection of the brand is based on availability in the body shop and certification provided by the automobile manufacturer. Availability of the appropriate color shade becomes important in the selection process for touch up jobs. The margins in the Automotive Refinish market are much higher as compared to the Automotive OEM market. [...]
[...] The total technology of the products would change when these regulations are made Technology for the refinish paints is improving day by day, and the market is moving from low segment market to high technology products which is a good sign for the auto refinish industry Problems with DuPont Weak dealer network To penetrate the market further especially in economy segment DuPont needs to adopt intensive distribution. No schemes for the dealers or painters- The company must motivate the dealers and painters in the form of attractive incentives (Rewards) or in other forms like imparting world class training to raise the morale of the dealers. [...]
[...] India it market the products of DuPont refinishes and Standox. It has a turn over of INR 85 Cr. Key Drivers and restraints for the Refinish market Looking at the present trend, it is predicted that the automotive refinishing industry will experience a strong future demand. Main drivers for this expectation include, but are not limited to the following India's increasing automobile population and the replacement of damaged parts Fast growing quality second-hand used vehicles market in the country Necessity for refinishing contributed by growth in number of automobiles on road and accidents Repainting of used cars over regular period of time Entry of Organized sector in the ‘Used car' industry Preference of paints of better technology, quality and performance The influx of all major automobile manufacturers in India Increased disposable discretionary income for households that purchase automobile as a status symbol There are not many restraints to the industry since there are no substitutes to these products. [...]
[...] DuPont has the worst dealer network among all the players in the Indian refinish industry. Marketing Strategies of DuPont Branding Strategies DuPont use brand names to indicate the quality of a product, its primary function and its key characteristics. The brands have a strong reputation for a given product that has been established over time and in many cases are synonymous with the type of product itself. As a result, competition between manufacturers is highly reliant on brand image and considerable investment is made in the leading brands in order to maintain their competitive advantage. [...]
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