Market Definition
The fluidic substances utilized for decreasing rubbing among surfaces and forestalling mileage of auto parts are auto oils. They improve the efficiency and functionality of crucial components like engines, hinges, bearings, and hydraulic gears, as well as reduce the amount of heat that is generated between parts. They are used for making transmissions, stamping body parts, making brake and fuel systems, and other automotive mechanics.
Insights into the Market During the Forecast Period (from 2023 to 28), the India Automotive Lubricants Market is anticipated to expand at a CAGR of approximately 2.0%. As a result of rapid urbanization, the region's standard of living has been impacted, and automotive sales have increased to satisfy consumers' desire to own a personal vehicle rather than use public transportation, which has contributed to the market growth. Additionally, the use of lubricants in luxury car maintenance ensures the expansion of the industry. As a result, the market's expansion is further fueled by the growing number of on-road vehicles, private cars as a means of transportation, consumer affordability, and maintenance habits, as well as the presence of older vehicles that need extra care. The market is also expanding as a result of stable crude oil prices, rising consumer awareness of the advantages of highly efficient engine oils, and the benefits of regular oil changes and maintenance that extend the life and quality of vehicles. In addition, government efforts to improve road infrastructure and build new highways to make it easier for automobiles to enter traffic are likely to provide the market with new growth opportunities. On the other hand, because electric motors negate the requirement for automotive lubricants or oil changes, the rapid adoption of electric vehicles may hinder market expansion. However, the industry's product sustainability is ensured by the numerous ways engine oils are used to maintain the large number of on-road vehicles in the region.
Key driver: Market Dynamics Consumers' Disposable Income Increasing, Boosting Automotive Sales As a result of the expanding urbanization and emerging economy, consumers' disposable income is always rising. In addition, the country's automobile sales have been fueled by people's willingness to upgrade and own a car. As lubricants are essential to the smooth operation of engines and automobiles, rising automotive sales have been driving the market as a result of rising disposable income and rising living standards. They are essential for extending the life of automobiles, particularly in light of the industry's ongoing expansion due to their durability, vehicle safety, and lower friction between engine components.
Possible Limitation: The emergence of electric vehicles is gaining traction as a result of the country's rapid urbanization, rising disposable income, increased access to new technology and resources, and further advancements in the automotive industry. Be that as it may, this shift is effectively upheld by different government drives and speculations to work with the country's EV change, which hinders a danger to the business as it decreases the necessity for motor oil or oil overall by supplanting the motor with an electric engine. Moreover, the presence of lesser parts and parts in the vehicles and the devaluation of different parts with the execution of innovation and high level contraptions further represent an obstruction to the car ointment market.
Learning experience: Emerging Need for Coolants and Fluids for Electric Vehicles Although electric vehicles do not require engine oil or other lubricants like those used in automobile engines, they still require lubricants for important electrical components like coolants for the car battery, gear oils for differentials, chassis, gear reducer, and wheels, brake fluids, and grease for other EV parts. The low-viscosity lubricant prolongs the electric vehicle's lifespan and ensures its smooth operation by reducing torque. To avoid electrical losses in the system and further thermal management without harming the components, the EV lubricants must be compatible with other EV parts. This ensures cooling, volume resistivity, dissipation factor, and dielectric strength. In addition, these products have higher technical requirements, so they are still in the development stage, providing the industry with new opportunities. For instance, Valvoline announced in January 2023 that it was prepared to launch a new line of fluids in India specifically designed for electric vehicles.
Main Trend: Significant Investment in the Improvement of Road Infrastructure and Connected Highways To address the under-penetration of vehicles in many urban and rural areas that is fueling the market expansion, governmental programs and policies are working to improve the infrastructure and construct connecting highways between significant traffic points and major cities. In addition, the government intends to upgrade numerous states' road infrastructure and construct numerous national highways. For instance, the Ministry of Road Transport and Highways received a larger investment of INR 199,107.71 crores (USD 26.04 billion) in the Union Budget 2022-23. Because of these factors, more people are driving and there are more opportunities for the market to grow.
Market Segmentation by Vehicle Type: Passenger Car Light Commercial Vehicle Medium and Heavy Commercial Vehicle Off-Road (OTR) Two-Wheeler Three-Wheeler Among all vehicle types, Passenger Car is anticipated to acquire the largest share in the India Automotive Lubricants Market over the course of the forecast period. This is due to the significant amount of transmission and gear oil that passengers use. In addition, the regular application of necessary products is further influenced by the fact that lubricants increase the efficiency and durability of passenger vehicles, as well as their individual ownership and manual maintenance.
Additionally, the Society of Indian Automobile Manufacturers (SIAM) reports that the total number of passenger vehicles sold increased to 3,069,499 from 2,711,457. As a result, the industry stands to gain from rising vehicle production and sales. Due to properties like mechanical stability, temperature tolerance, water resistance, and oxidant resistance, passenger cars require high-performance greases. Grease is also used in a lot of auto parts, like wheel bearings, universal joints, suspensions, gears, switches, and connectors. This makes more uses for it as a lubricant and keeps the market growing.
Engine oil is expected to dominate the market during the forecast period, followed by gear and brake oil, transmission fluid, and grease. The increase in the market is attributed to the expansion of the automotive industry's production, resulting in an increase in both consumption and demand for engine oils. In addition, the segment's market is expanding as a result of the high production and sales of two-wheeled vehicles, which boosts lubricant consumption. Through applications like protecting against corrosion, varnish, and sludge, lubricating internal combustion, and maintaining the engine's smooth operation by creating a thin film between the moving parts to improve heat transfer and reduce contact tension, engine oil maintains its position in the industry.
Moreover, the supporting number of gas and diesel vehicles present in the locale additionally defends the use of motor oils. Additionally, engine oil is necessary for the proper operation of a variety of commercial and heavy-duty vehicles, including tractors, off-road vehicles used in agriculture and construction, trucks, and others. As a result, they are less likely to be replaced by new industrial growth-promoting technologies.
Ongoing Advancements On the lookout
In January 2023, McLaren Auto, an extravagance supercar organization, declared the reestablishment of its organization with Bay Oil Worldwide as its true grease and fuel accomplice for 2023.
In June 2022, Shell presented a pre-owned oil the executives administration as a feature of another endeavor to coordinate India's waste oil removal foundation and upgrade re-refining rates. Shell began collecting and re-refining used oil throughout India through a partnership with refiners of used oil.
Indian Oil made an investment of INR 840 crores (USD 99 million) in April 2022 to construct a refinery and a greenfield facility in the Northeast, expanding its petroleum, oil, and lubricant storage space.
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