Automotive Lubricant Sales In India To Reach 1.7-Mt By 2021

The demand for automotive lubricants in India is forecast to increase 5.5% annually through 2021 to reach 1.7-mt. In addition to growth in the country’s light vehicle usage, India’s rapidly expanding motor vehicle production will support demand. The vast majority of motor vehicle lubricant demand will stem from after-market applications, which are expected to account for 58% of demand in 2021. Emissions regulations in India are also encouraging the use of better quality engines that are more likely to use synthetic lubricants.

These and other trends are presented in ‘Automotive Lubricants Market in India,’ a new study from The Freedonia Group, a Cleveland (US)-based industry research firm.

8% growth in vehicle population

The number of motor vehicles in use in India is forecast to expand 8.0% annually through 2021, nearly the same pace as that seen during the 2011-2016 period. India will see significantly higher growth than the Asia/Pacific region as a whole and higher than the world at large. Although the light vehicle park continues to grow at a rapid rate, two-wheeled vehicles such as motorcycles and scooters still represent a primary means of personal transportation in India. In fact, India surpassed China in 2017 to become the world’s largest market for two-wheeled vehicles.

Rapid advances in demand for synthetic lubricants

India is also projected to see rapid advances in the demand for synthetic lubricants, as more advanced engine technologies (which are more likely to use synthetic formulations) see greater adoption and more OEMs recommend these products for their ability to help improve fuel efficiency. Growing consumer awareness of the performance advantages of synthetic lubricants will also buoy sales, as consumers want to protect what is considered a significant household investment.