The Central Bureau of Statistics, the U.S., states that the per capita disposable income of Indonesia surged from IDR 38,555.200 in 2017 to IDR 41,287.100 in 2018. The rising mounting disposable income of people has led to a significant surge in the purchasing power of people in local demographics, owing to which Indonesia is witnessing the large-scale introduction of numerous differentiated products, such as basecoats, clearcoats, and primers and fillers. Thus, the increasing disposable income is expected to accelerate the usage of automotive refinish coatings in the country.
Additionally, the increasing number of vehicles in the country will also help the Indonesian automotive refinish coatings market advance at a CAGR of 4.9% during 2018–2023. According to P&S Intelligence, the market was valued at $240.2 million in 2017 and it will generate $336.6 million revenue by 2023. The International Organization of Motor Vehicle Manufacturers (OICA) states that Indonesia produced 551,400 units of passenger cars and 139,886 units of commercial vehicles in 2020.
Currently, the companies providing automotive refinish coatings in Indonesia are actively focusing on the procurement of refinishing products and raw materials from their global manufacturing plants and distributing these products to automobile original equipment manufacturers (OEMs) and aftermarket firms offering vehicle parts. Companies, such as BASF SE, Kansai Paint Co. Ltd., PT. Hartwell Paint Indonesia, PT. Victorindo Pratama Mandiri, PT. NP Auto Refinishes Indonesia, Akzo Nobel N.V., The Sherwin-Williams Company, PT. Anugerah Berkat Cahayaabadi, KCC Corporation, The Lubrizol Corporation, and PT. Danapaint Indonesia, produce epoxy, alkyd, acrylic, polyurethane, and polyester-based refinish coatings in Indonesia.
The aforementioned companies use ultraviolet (UV)-cured, solvent-borne, and water-borne technologies to produce refinish coatings for cars, two-wheelers, and commercial vehicles. In the last few years, solvent-borne refinish coatings were consumed in the highest volume in Indonesia due to the availability of a diversified portfolio of such products and their low drying time. Refinish coatings applied on vehicles can be availed from aftermarket companies and OEMs. In the coming years, the aftermarket sales channel will gain traction in Indonesia due to the growing number of pre-owned car dealerships and the increasing number of custom car and car repair shops in the country.
Therefore, the soaring disposable income of people and the rising number of automobiles will facilitate the adoption of automotive refinish coatings in Indonesia in the years to come.
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