- Sectors: Driving
Supplier Assessment in China’s Auto Paint Market
A leading financial institution interested in an investment in China’s paint industry (as part of a global acquisition).scroll down
The refinish segment in China indicated particular attractiveness and importance in the evaluation of the investment. Management needed an independent analysis of the target firm’s China refinish business and its future outlook.
Solidiance conducted a comprehensive analysis of refinishing activity in the OES channel across 10 urban markets through interviews with dealerships, distributors and paint suppliers.
Our team provided a comprehensive outlook for China’s refinishing market in the OES channel. We developed a five-year outlook on China’s light automotive parc by vehicle category and geographic region and constructed a collision model to forecast the number and type of accidents and repair rate activity for the parc. Furthermore, we assessed paint supplier activity and conducted a switching analysis among over 90 dealerships to track target company win-loss activity over the last 3-5 years.
The client was assisted in forming an opinion on the viability of the investment. We highlighted risks for the target investment based on supplier activity and market outlook.