Lubricants

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  • Topic: Lubricant, Petroleum, Motor oil
  • Pages : 9 (1338 words )
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  • Published : January 1, 2013
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Automotive Lubricants Markets in India
Description:

The Indian automotive lubricants market is largely price sensitive and volume growth is stagnating due to longer lasting lubricants. The market is fragmented with over 22 big and small manufacturers and with the spate of mergers and acquisitions (M&A), only a handful of big companies enjoy a major market share.

Companies are adopting a more customer-oriented approach where they are likely to focus on creating brand awareness through print and visual media. For example promotional campaigns and trade shows offering gifts to their customers are methods of driving sales of automotive lubricants. The original equipment segment and retail trade are the two major marketing channels in the Indian automotive lubricants market. Due to the growing competition, tie-ups with original equipment manufacturers (OEM) are becoming important as they reinforce the value proposition of a particular brand.

Petrol pumps form a major distribution channel in retail trade, however sales of lubricants through retail outlets (also called ‘the bazaar trade’) has transformed the Indian automotive lubricants market into a fast moving consumer goods (FMCG) sector. The other marketing channels are authorized service stations, garages, rural and agricultural dealers, super markets, and wholesale distributors

Public sector unit (PSU) companies, that manufacture their own base oil, follow different distribution strategies as compared to private participants that solely dependent on imports. While PSUs sell through their own wide spread network of petrol stations private manufacturers prefer retail outlets.

Engine oil, which accounted for over 70.0 percent market share in 2004 in the Indian automotive lubricants market, plays the most crucial role in deciding the market share of manufacturers. Increase in demand for four stroke motorcycles, tie ups with original equipment manufacturers, and implementation of new pollution norms are just some of the key drivers of the engine oil segment. The brake oil and coolant is the next largest segment in the Indian automotive lubricants market. Demand for coolants is increasing due to continuous growth in heavy commercial vehicles, increasing awareness among the customers, new cooling system technologies, and OEM tie-ups. In brake oil segment, increasing growth in light commercial vehicles, introduction of new brake systems, consumption of lubes by commercial passenger vehicles, and changing customer mindset regarding specialty lubricants are expected to push demand further. The market for gear oils is also growing rapidly and has a high potential due to the increasing number of vehicles on the road. New generation vehicles with advanced gear system technologies and automatic transmission systems require special type of lubricants resulting in greater demand for multi axel gear oil and API synthetic gear oil, API GL-5, API MT-1, and ultra-Matic, which reduce the oil changing intervals.

In the long term, the overall outlook for the automotive lubricants market is expected to be positive due to the growing Indian economy along with the increased purchasing power of consumers.

Contents:

1. Introduction to Automotive Lubricants Market in India
- 1. Introduction to Automotive Lubricants Market in India
- - 1. Introduction to Automotive Lubricants Market in India

- - 2. Major Participants
- - 3. Market Trends
2. Indian Engine Oil Lubricants Market
- 1. Introduction
- - 1. Introduction
- - 2. Overview and Definitions
- - 3. Current Scenario
- - 4. Market Share Analysis
- 2. Market Drivers
- - 1. Market Drivers
- - - a. Rapid Growth in Automobile Industry
- - - b. Increase in Demand for Four Stroke Motor Cycles
- - - c. Original Equipment Market (OEM) Tie Ups
- - - d. Implementation of New Pollution Norms
- - - e. Requirement of High Quality Engine...
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