# Paints and coatings and Vehicles, ships, rail, aircraft

Every vehicle body passes through a multi-layer paint shop and every hull needs anti-fouling paint, so coating makers sell into vehicle and ship production and then again into repair: at Axalta, a leading supplier, refinish for body shops was 40% of 2025 sales against 36% for light and commercial vehicle makers.

Source page: https://www.materialinsights.org/links/paints-and-coatings-and-vehicles-ships-rail-aircraft/

[Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/) (chemical) and [Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/) (industry): 3 relationships.

## How they are linked

### 1. Industry input

*Physical flow · Strong · Coatings → car bodies, hulls and airframes*

Paint protects steel and aluminium bodies from corrosion and gives the finish buyers see, and a car body is built up in layers of electrocoat, primer, basecoat and clearcoat; three enterprise types in vehicles depend on coatings, rated up to 5 of 5.

- **3** enterprise types that depend on it
- **5 of 5** criticality for aircraft, ship and rolling-stock builders (marine anti-fouling)
- **4 of 5** criticality for car, two-wheeler and commercial-vehicle makers (body paint)

Car, two-wheeler and commercial-vehicle makers rate body paint 4 of 5, and press, robot, paint-shop and tooling suppliers rate it 3 of 5. Ship, aircraft and rolling-stock builders rate coatings highest, 5 of 5, for marine anti-fouling, where IMO limits on biocides narrow the range of approved products.

Enterprise types that depend on it:

- Aircraft, ship and rolling-stock builders: marine anti-fouling (criticality 5 of 5)
- Car, two-wheeler and commercial-vehicle makers: body paint (criticality 4 of 5)
- Press, robot, paint-shop and tooling suppliers: body paint (criticality 3 of 5)

Sources: [Material Insights](https://www.materialinsights.org/industries/vehicles/materials/); [Axalta / US SEC](https://www.sec.gov/Archives/edgar/data/0001616862/000119312526166925/d72147dars.pdf); [DNV](https://www.dnv.com/news/2022/cybutryne-banned-in-anti-fouling-systems-from-1-january-2023-224593/)

### 2. OEM and refinish demand

*Physical flow · Medium · Vehicle makers and body shops → coating makers*

Coating makers sell twice into the vehicle fleet: to factories in line with vehicle output, and to body shops in line with collisions and repairs, which smooths the cycle.

- **40%** refinish share of Axalta net sales, 2025
- **28% and 8%** light vehicle and commercial vehicle OEM shares of Axalta net sales, 2025
- **about 96,000** body shops served by Axalta, 2025

Axalta reports that refinish sales are driven by the number of vehicle collisions rather than by new car output, so they are less tied to production; OEM coatings follow assembly schedules. Axalta's 2025 net sales of about $5.1 billion still fell 3%, so neither channel is immune to the economy.

Sources: [Axalta / US SEC](https://www.sec.gov/Archives/edgar/data/0001616862/000119312526166925/d72147dars.pdf); [Axalta Coating Systems](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001616862/b0594590-5a73-47ae-8b7f-d77413b447e5.pdf)

### 3. Anti-fouling rules for ships

*Policy · Medium · IMO rules → marine coating chemistry*

Anti-fouling paints work by releasing biocides, which harm marine life, so the IMO's AFS Convention bans the most toxic ones and shipowners must use compliant coatings.

Organotin compounds such as TBT are already prohibited, and cybutryne has been banned in anti-fouling systems from 1 January 2023; ships carrying it must remove it or seal it under a barrier coat at the next scheduled renewal of the coating, and no later than 60 months after the last application. Each ban shifts demand to the coating makers whose replacement chemistry is approved.

Sources: [DNV](https://www.dnv.com/news/2022/cybutryne-banned-in-anti-fouling-systems-from-1-january-2023-224593/)

## For investors

### Key learnings

1. Automotive coatings combine a cyclical OEM business with a steadier refinish business tied to collisions, which at Axalta was the larger part in 2025 (40% of sales against 36%).
2. Car makers rate body paint 4 of 5 on criticality, so coating suppliers are embedded in vehicle production, but their OEM sales still rise and fall with assembly volumes.
3. Marine coatings are shaped by IMO biocide rules, which periodically force reformulation and favour suppliers with approved chemistry.

### What to track

- **Vehicle production by region**: Volume for OEM coatings (Monthly · SIAM (India), S&P Global Mobility)
- **Segment results of Axalta and PPG (refinish and mobility coatings)**: Split between OEM and refinish demand and pricing (Quarterly · company reports)
- **IMO MEPC decisions on anti-fouling substances**: Coming reformulation needs in marine coatings (Twice yearly · IMO)

## For policymakers

### Key learnings

1. India's vehicle output, with 4.3 million passenger vehicles and 19.6 million two-wheelers sold in FY2024-25, makes it a large market for automotive coatings.
2. Refinish demand follows collisions across the whole vehicle fleet, so it keeps growing with the fleet even in years when new vehicle output stalls.
3. Ships trading internationally must meet the IMO AFS Convention, so support for Indian shipbuilding and ship repair should include access to compliant anti-fouling coatings.

### What to track

- **SIAM vehicle production and sales**: Demand for automotive coatings in India (Monthly · SIAM)
- **Anti-fouling rules and surveys applied to Indian-flag ships**: Compliance of coatings at Indian yards and dry docks (As issued · Directorate General of Shipping)

## India

India's paint market was over ₹70,000 crore in 2023, according to Kansai Nerolac, which describes itself as the leader in Indian automotive coatings; record passenger vehicle sales of 4.3 million in FY2024-25 underpin OEM and refinish demand.

## Sources

1. [Vehicles, ships, rail, aircraft: materials](https://www.materialinsights.org/industries/vehicles/materials/), Material Insights (2026)
2. [Axalta Coating Systems annual report 2025 (Form ARS)](https://www.sec.gov/Archives/edgar/data/0001616862/000119312526166925/d72147dars.pdf), Axalta / US SEC (2026)
3. [Axalta releases fourth quarter and record full year 2025 results (Form 8-K, Exhibit 99)](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001616862/b0594590-5a73-47ae-8b7f-d77413b447e5.pdf), Axalta Coating Systems (2026)
4. [Cybutryne banned in anti-fouling systems from 1 January 2023](https://www.dnv.com/news/2022/cybutryne-banned-in-anti-fouling-systems-from-1-january-2023-224593/), DNV (2022)
5. [Kansai Nerolac corporate presentation, July 2023](https://www.nerolac.com/sites/default/files/uploads/Corporate-Presentations/2022-23/Corporate-Presentation-FY-July-23.pdf), Kansai Nerolac Paints (2023)
6. [India's passenger vehicle sales hit record high at 43 lakh units in FY24-25: SIAM](https://www.tribuneindia.com/news/business/indias-passenger-vehicle-sales-hit-record-high-at-43-lakh-units-in-fy24-25-utility-vehicles-driver-of-growth-siam), The Tribune (ANI) (2025)