Impact of Asia-Pacific Report COVID-19 on the Indian Automotive Coating Industry

In recent memories, New Crown COVID-19 has become the most destructive force in the automotive coating industry. The last four months have seen an unprecedented drop in demand from the Indian coating industry. The financial results of Nashik's coating equipment business in India, unlike the slow growth state in the country, paint a grim picture of the future for the coming months.

The ongoing COVID-19 outbreak has made it very difficult for the automotive and coating service provider industry. Currently, India has the second highest number of cases in the world and it is getting worse every day. Uncertainty regarding the spread of COVID-19 in India is causing anxiety and uncertainty among businesses and consumers. There seems to be neither capacity nor desire to consume.

A study conducted by researchers at the Massachusetts Institute of Technology (MIT) suggests that if a vaccine or treatment is not developed soon, the number of COVID-19 cases recorded daily in India could surge to 287,000 per day by early 2021. The study suggests that by late winter 2021, India could record the highest number of new cases in the world.

Impact of COVID-19 on the coating industry

India imposed one of the strictest embargoes in the world; from March 25 to May 17, almost the entire country shut down for more than 50 days. Coating service providers in the country were required to suspend production for more than 30 days. After that, some production phases will be resumed partially in a phased manner. However, so far, the capacity of the Indian coating industry remains low.

The Indian automobile industry recorded zero sales in April and the first half of May. Sales figures have improved since then, but most carmakers fear that the economic contraction caused by the epidemic will exacerbate the Indian automotive industry, which recorded an 18% drop in sales in the fiscal year ending March 31, 2020 to society officials The Society of Indian Automobile Manufacturers (SIAM) had warned in May that a 2% contraction in India's economy would mean that sales of cars, trucks and motorcycles would slump by 45 percent.

SIAM president Rajan Wadhera said, "We expect to see positive growth only in the next financial year and a return to previous sales figures much later once workers are brought back, component manufacturers get orders, the transportation system is revitalized and sales people close deals."

The industrial business segment of India's automotive coatings continues to be affected by the downturn in the automotive industry and the general slowdown in the economy. During the last few days of March, a number of companies went out of business completely, which added to the pressure on these companies. However, it will be beneficial to reduce raw material prices and production costs to offset some of these losses.

2020 is destined to be a difficult but extraordinary year. However, Ruoxi believes that the new crown is only a change of pace rather than a trend in the coating industry. Given the temporary diplomatic tensions between India and China, Naxi's coating service and equipment business in India will have a winding up phase. And we can devote more energy to the domestic market and the digitization of the coating supply chain.

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