The Automotive Coating Industry in Thailand

Thailand’s success in the automotive industry and the country’s emergence as one of the most important hubs during the past two decades in the Southeast Asia region has acted as a catalyst in the development of a vibrant automotive coating industry in the country.

Major global automotive coating specialists have set up their plants to cater to the increasing demand for their products. Coatings World presents an overview of the Thai automotive coating market in this feature.

Overview of Automotive Coatings in Thailand

Thailand is Southeast Asia’s biggest automotive coating producing industry, on the back of a vibrant automotive production center and an export base for some of the world’s top carmakers, including Honda and Toyota. However, 2024 was a forgettable year for Thailand’s automotive coating producers, as demand dropped by about 18% due to a record decline in automotive production. Vehicle production in the country in the concluded year dipped by about 20% from the previous year, registering the lowest output in four years.

Despite a sizable production of automobiles in the country, vehicle ownership in the country is low as compared to some other Asian countries. Low ownership is a huge opportunity for automotive coating producers.

Automotive Industry in Thailand

Thailand is a leading hub for global vehicle production in Southeast Asia, with 44 automakers from nine countries – China, Italy, Japan, Germany, Singapore, Sweden, Thailand, the United Kingdom and the US – producing 29 brands.

The automotive industry has been a cornerstone of Thailand’s economy since the 1960s, contributing approximately 18% of the total gross domestic product (GDP) in 2021. From 2010 to 2023, the number of light-duty and heavy-duty vehicles increased from 10.8 million to 20.8 million, and motorcycles rose from 17.3 million to 22.7 million, registering a brisk growth rate. As of 2023, motorcycles dominate the sector with a 53% share, followed by passenger cars (27%) and commercial vehicles (20%).

In 2024, car output dropped to 1.47 million units from 1.83 million in 2023. Production on a year-on-year basis contracted for the 17th successive month in December. In 2025, car production is projected at 1.5 million units, of which 1 million will be for export and the rest for the local market, according to the Federation of Thai Industries.

Leading Automotive Paint Producers in Thailand

• Akzo Nobel Thailand

In 2017, AkzoNobel expanded its footprint in Thailand by opening a performance coating production plant in Chonburi with an investment of €31 million.
Commenting on the opening, Bill Collins, then corporate director of AkzoNobel Performance Coatings business, stated, “This new facility highlights our continued focus on adapting to market needs in order to better serve our customers with essential color and protection. It will also play a key role in driving organic growth for the Performance Coatings business.”

During the same year, Akzo Nobel acquired the business of V.Powdertech Co., Ltd., a Thai manufacturer of powder coatings.

• Nippon Paints Thailand

Operating in Thailand since 1967, Nippon Paints Thailand currently has three manufacturing facilities in the country to serve the demand from the automotive segment.  The company operates one plant in Samut Prakan, while the other two manufacturing plants are located in Chachoengsao’s Bang Pakong district. Samut Prakan’s plant produces automotive refinishes, while the other two plants produce OEM paints. Nippon Paint Thailand has a market share of more than 25 % in the automotive segment.

In November 2023, NP Auto Refinishes Co., Ltd., a subsidiary of NIPSEA Group, acquired automotive refinish producer D-Act Co., Ltd. to expand its market share and reinforce its leadership position in the Thai automotive refinish and CV coatings market. Established in 1995, D-Act Co., Ltd. is a well-known manufacturer of commercial vehicle, automotive refinish, and specialized industrial coatings.

“We recognize the value that D-Act brings to us in terms of its products, technology, manufacturing capabilities, as well as its extensive customer relationships and distribution strengths. We will collaborate closely with D-Act to realize significant synergies for Nippon Paint and further strengthen our presence in the Commercial Vehicles and Automotive Refinish paint market,” Sharad Malhotra, senior vice president, Nippon Paint Group Auto Refinishes, commented on the occasion of this acquisition.

• Thai Kansai Paints Limited

Producing automotive paints since 1968, Thai Kansai Paints Limited is one of the leading producers of automotive paints. Located at Samut Prakan province, the company operates three state-of-the-art production facilities located at Samut Prakan province, Gateway City Industrial Estate, and Rayong.

• BASF Coatings

BASF’s Coatings division operates an automotive coatings plant at its Bangpoo manufacturing site in Samutprakan province. Operating since 2017, this is the first BASF automotive coatings manufacturing facility in the ASEAN region. This facility produces solventborne and waterborne automotive coatings to meet growing market demand in the country and the extended region.

The Bangpoo plant complements the facilities at the Coatings Technical Competence Center ASEAN, which was opened in the middle of the last decade at the same location. The technical center includes a laboratory for product development, high performance application facilities, and color design, as well as a small batch production unit.
The proximity of the production and technical facilities enables operational efficiency and speed to market. The automotive coating plant allows BASF to offer customized service, and it also has the potential for future expansion and the flexibility to adapt to new production requirements and changing industry trends.