India Automotive Coolant Market - Growth, Trends, Covid-19 Impact, and Forecasts ((2022 - 2027)

India Automotive Coolant Market - Growth, Trends, Covid-19 Impact, and Forecasts ((2022 - 2027)

The Indian automotive coolant market was valued at around USD 63 million in 2020. The market is expected to reach above USD 140 million, at a CAGR of about 8% during the forecast period.

The COVID-19 outbreak impacted the market negatively, as the demand for automobiles during the lockdown period declined to almost zero for the first time. The production for vehicles was also halted, in order to maintain the social distancing norms and prevent the spread of the virus. However, with the gradual opening of the economy, demand is gradually increasing. The market is expected to recover in the second half of 2021.

With the growing demand for vehicles and government incentives to OEMs to promote the Make in India initiative, several OEMs from across the world are investing heavily in the country to set up their production units to meet the local and global demand. The other factor acting as a market driver is the increasing average age of vehicles on road.

Ethylene glycol is the most preferred automotive coolant. However, it is highly toxic and requires careful disposal. Therefore, the coolant industry began manufacturing less toxic coolants. The passenger cars segment is expected to grow with high rate due to high demand of cars in the country.

Key Market TrendsIncreasing Investment in the Automobile Sector in the Country

In order to keep up with the growing demand, several automakers have started investing heavily in various segments of the industry during the last few years. With the FDI policy for the automobile sector allowing 100% FDI under the automatic route, FDI equity inflows in the automobile industry are increasing at a high rate.

Several global OEMs are investing in the country either through joint ventures with established players or after the relaxations of FDI norms, investing directly in setting up their own production units or enhancing the sales and dealership networks across the country. Some of the recent/planned investments and developments in the automobile sector in India are as follows:

• In November 2020, Mercedes Benz partnered with the State Bank of India to provide attractive interest rates, while expanding the customer base by reaching out to potential HNI customers of the bank.
• In October 2020, MG Motors announced its interest in investing INR 1,000 crore (USD 135.3 million) to launch new models and expand its operations.

With the growing investments in the automotive sector, the production of automobiles in the country is expected to ramp up to meet the growing demand. The trend is expected to continue during the forecast period.

Ethylene Glycol Segment Captures the Largest Market Share

Ethylene glycol is a toxic material that can lead to birth defects, reproductive damage, or even death. Thus, it requires very careful handling.

It has many commercial and industrial applications, including antifreeze and coolant. It prevents the car's engine from freezing in the winter and acts as a coolant to reduce overheating.

Some of the ethylene glycol-based coolants available in India are:

• The Wuerth Anti-Freeze Coolant is being adopted in the Indian, Japanese, American, European, and Korean vehicles by various automakers. The color of the oil is green, and it is ethylene glycol based.
• The Euroils Euro Turbo Cool Coolant Concentrate Green with ethylene glycol base makes it ideal for radiators. The oil has an oil-to-water dilution ratio of 1:2.

With the increasing adoption of ethylene glycol-based coolants in automobiles, due to its cost advantage over propylene glycol, the segment is expected to grow with high rate.

Competitive Landscape

The intensity of competitive rivalry is high due to the presence of domestic and international players in the market. Some of the major players in the automotive coolant market include India Oil Corp., Castrol, Exxon Mobil, and Valvoline. Additionally, some OEMs, like Audi, BMW, VW, and Suzuki, supply coolants under their own brands, further impacting the competitive landscape. For instance, India’s largest passenger carmaker, Maruti Suzuki India (MSIL), launched Ecstar, Suzuki’s global brand of lubricants, coolants, and car care products in the country.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Castrol Ltd.
Valvoline LLC
Indian Oil Corp Ltd.
Motul
Euroils
Voltronic GmbH
IFTEX Oil & Chemicals Ltd.
Total SA
ExxonMobil Corp.
Schaeffler India Limited

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