Overview

As Chinese automakers increasingly shift their overseas strategy from exporting finished vehicles to establishing local production, Nippon Paint China is supporting this transition through the supply of coating materials and technical assistance to overseas plants operated by Chery, Geely, and BYD. By helping these plants ramp up production and maintain stable operations, we are contributing to the expansion of Chinese automakers’ overseas manufacturing footprint. Going forward, we will further strengthen our China-led, globally collaborative model and continue to support the overseas manufacturing expansion of Chinese automakers.

The Shift to Overseas Production Is Accelerating

In recent years, Chinese automakers have been stepping up the expansion of local production to better respond to overseas markets. They now operate more than 100 overseas production sites, with overseas production capacity exceeding 2.5 million units (Note 1). In this environment, coating operations are also placing greater importance not only on product supply, but also on process solutions tailored to local production conditions and on-site support adapted to each region.

A China-Led, Globally Collaborative Supply Framework

Drawing on its long-standing collaboration with Chery, Geely, and BYD in China, Nippon Paint China is extending the same quality and technical standards to overseas projects. By closely coordinating its sales, technical, and production teams, and by leading the overseas rollout and local adaptation of process standards, the Company has built a support structure that is integrated with production and technical resources across the Asia-Pacific region. This enables us to provide end-to-end support from project launch and trial production through to mass-production ramp-up, helping overseas plants achieve faster start-up and more stable operations.

Accelerating Deployment in Key Overseas Projects

Against this backdrop, Nippon Paint China is accelerating its rollout in key overseas projects. For Chery, in addition to achieving stable supply to three plants in Malaysia, Indonesia, and Pakistan, the Company has also secured projects for a smart factory in Malaysia and a plant in Vietnam, supplying pre-treatment, intermediate coat, topcoat, cleaning solvents, and other materials. For Geely, the Company is supplying 2K clear and a range of coating products for the Proton Tanjung Malim plant in Malaysia and a plant in Indonesia, tailored to each plant’s manufacturing requirements. For BYD, Nippon Paint China has consecutively won topcoat projects for the Rayong plant in Thailand and the Subang plant in Indonesia. These are all key overseas self-owned production bases in Southeast Asia, and Nippon Paint China will continue to provide coating materials and technical support as they move towards mass production.

Looking Ahead

Through its track record of supporting overseas production sites in five countries and nine plants, with annual production capacity exceeding one million units, Nippon Paint China has strengthened its supply and technical support capabilities for the overseas manufacturing bases of Chinese automakers. Going forward, the Company will continue to leverage the strengths of its China-led, globally collaborative model and work with more Chinese OEMs to advance the development of overseas manufacturing systems, thereby strongly supporting the high-quality global expansion of China’s automotive industry.