my country's automobile sales continue to decline, what is the impact of the coating market?

From the financial reports of many coating companies in the first quarter, automotive coatings have declined to varying degrees, including Nippon and PPG.
Among them, the automotive coating sales market in Asia is sluggish, which has a lot to do with the decline in sales in the Chinese automotive market.
Nippon: In the first quarter, automotive coatings achieved sales of 40.
73 billion yen (approximately 2.
551 billion yuan), down 5.
7% year-on-year.
The weakness of the coating sales market in Asia is related to the lower than the previous year's level in China's automotive sales.
PPG: Automotive original equipment manufacturer (OEM) paint sales fell by single digits compared to the same period last year, mainly due to the decline in global automotive production.
The decline in automotive demand in the Chinese market is also one of the unfavorable factors.
Observing the first quarter financial reports of domestic downstream listed car companies in 2019 is also a decline, such as SAIC Group and Changan Automobile.
SAIC Motor: In the first quarter of 2019, 1.
533 million new cars were sold, compared with 1.
822 million in the same period last year, a decrease of 15.
88%.
  Changan Automobile: Changan Automobile sold 448,800 new cars in the first quarter of 2019, compared with 658,300 sales in the same period last year, a year-on-year decrease of 31.
9%.
  The overall auto market is sluggish, and BYD and BAIC New Energy, which focus on new energy, are like a dawn.
  BYD: The cumulative sales in the first quarter were 117,600 vehicles, an increase of 5.
19% over the same period last year.
The growth can be attributed to the sales of 73,000 new energy vehicles, an increase of 146.
89% from 29,000 in the same period last year.
In terms of traditional fuel vehicle business, BYD is still experiencing a decline, with cumulative sales of 44,400 vehicles, a year-on-year decline of 45.
94%.
  BAIC New Energy: In the first quarter, it achieved sales of approximately 25,100 new vehicles, a cumulative year-on-year increase of 20.
46%.
The continued weakness of the auto market does not mean that the decline in sales does not mean a decline in demand  In 2018, the total sales of passenger vehicles nationwide totaled 22.
351 million, a year-on-year decrease of 5.
8%.
The market continued to perform poorly in the first quarter of 2019.
It is understood that the total retail sales in the first quarter was only 5.
078 million, a decrease of 10.
5 from the same period last year.
%, 350,000 vehicles less than the 5.
428 million vehicles in 2017, which was the lowest in the same period in the past three years.
  A series of factors such as the early implementation of the "National VI" standard and the difficulty of lottery are all affecting consumers' desire to buy.
  The "National VI" emission standards that should have been implemented only in 2020, regions represented by many provinces and cities such as Shenzhen, Tianjin, Hebei, Shandong, Henan, Beijing, Guangdong, and Shanghai, have implemented the "National VI" emission standards in advance.
This has caught many manufacturers by surprise, they are not yet ready, and consumers are also on the sidelines.
  The decline in sales does not mean a decline in demand.
According to statistics from the Ministry of Public Security, 31.
72 million newly registered motor vehicles nationwide in 2018, the number of motor vehicles has reached 327 million, of which 240 million are cars, and small passenger cars exceed 200 million for the first time Vehicles.
The current car ownership in China is equivalent to 7 people owning a car, which is low compared to European and American countries.
my country’s car demand market is far from reaching the level of saturation, and consumer demand is affected by some objective environmental factors.
Affected.
  In order to stimulate consumer demand, on June 2, Guangzhou City and Shenzhen Municipal Transportation Bureau respectively issued notices to increase the indicators of small passenger cars.
From June 2019 to December 2020, Shenzhen and Guangzhou will add 80,000 vehicles and vehicles respectively.
100,000 car license plates can drive car consumption to a certain extent.
The new energy vehicle market is strong but requires cutting-edge technology to support the   sales of new energy vehicles in the weak auto market.
According to the data released by the China Automobile Association, the annual sales volume exceeded one million in 2018, and the production and sales were 1.
27 million and 1.
27 million vehicles.
1.
256 million vehicles, a year-on-year increase of 59.
9% and 61.
7%, respectively.
The sales volume in the first quarter of 2019 reached 254,000 vehicles, a year-on-year increase of 117.
8%.
  The orientation of environmental protection policies and subsidy policies are an important reason for the increase in sales of new energy vehicles.
With the gradual decline of subsidy policies, the market will also enter a new round of competition.
The current battery life issue is one of the major reasons restricting development.
The new energy market will also usher in a wave of reshuffle, and companies with strong independent research and development capabilities will have more room for development.
But it is undeniable that the future market capacity will still be large, which will attract so many upstream chemical companies to enter this market.
  At this year’s China International Plastics Exhibition, lightweight materials for new energy vehicles are a major theme.
Many companies have begun to make efforts in this field.
In the article "Coatings Market", it is also mentioned that international chemical giants Covestro and BASF, coating giants PPG, local coatings brand Feilu Co.
, Ltd.
, Artoo High-tech and Shuanghu Coatings, etc.
have all entered the field of new energy automotive coatings.
  Policies and markets are pointing towards environmental protection.
The promotion of new energy vehicles will help reduce air pollution emissions.
For the automotive sector, the issue of VOCs emissions from coating production lines has also received attention.
In December 2017, the China Automotive Technology Research Center The "Action Plan" requires that a "Road Map for the Reduction of Volatile Organic Compounds in the Automobile Industry" was formulated, and the targets, technical routes and demonstration cases for the reduction of VOCs in the automobile industry were put forward.
Starting from December 31, 2018, the VOCs emissions per unit painting area of ​​passenger cars, truck cockpits, truck compartments and passenger cars in automobile painting workshops should be controlled within 35, 75, 90, and 180 g/m2 respectively.
  Driven by environmental protection policies, water-based automotive coatings have also become a trend.
Many international big-name coating companies have begun to expand their water-based coating production capacity in China early, including the new generation of water-based paint factory invested and constructed by Axel Paint Systems in Jiading, Shanghai.
The water-based paint project of Bell Swire Paint (Chengdu) Co.
, Ltd.
, and the high-performance water-based and high-solid paint production line of PPG's Wuhu plant all value the Chinese water-based automotive coatings market.
  The decline in car sales is caused by a series of objective factors.
With the clarification of various policies and the maturity of new energy vehicle technology, it will continue to win growth.
After all, the "travel" of "food, clothing, housing, and transportation" is also the basis for consumers.
One of consumption.
As the automotive market rebounds, upstream automotive coatings will also have a turning point and breakthrough.
At this time, the market environment is obviously conducive to companies with core technological competitiveness.
Large companies will also become larger and smaller companies.
Small situation.