India Lubricants Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Lubricants Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Indian lubricants market was valued at over 2,610 kiloton in 2020, and the market is projected to register a CAGR of more than 1.5% during the forecast period (2021-2026).

Due to the COVID-19 impact in the first half of 2020, the industrial sector in the country witnessed a negative impact in 2020. Due to the lockdown during the pandemic period, automobile production has been halted, and plants are temporarily shut down. This, in turn, affected the demand for lubricants in 2020. The automobile production in the country declined to 2.16 million units in the first nine months of 2020 from 3.51 million units in the same period of 2019.

Key Highlights

• In the short term, major factor like the increasing usage of high-performance synthetic lubricants is expected to drive the demand for lubricants in the country.
• On the flip side, the slowdown in the automotive sector is likely to hinder market's growth.
• The automotive segment dominated the market in the country with more than 50% share by end-user industry in 2020.

India Lubricants Market TrendsEngine Oil Segment Has Dominated the Demand

• The three typical types of engine oil can be listed as full synthetic oil, semi-synthetic oil, and mineral oil.
• Full synthetic oil is the most refined type of engine oil that is commonly used in high-performance bikes. This oil has a longer shelf life as compared to the other two types of engine oils. The only downside of this engine oil is the heavy pricing associated with synthetic oil.
• Semi-synthetic oil is a mixture of non-conventional and high-performance fluid additives combined with traditional engine oil. Semi-synthetic oil exhibits the properties of both synthetic oil in terms of their performance. Typically, this oil is used in low-capacity engines, like 125-180 cc bikes.
• Mineral oil is the most used type of engine oil in the Indian scenario. It is extracted from petroleum products. and is hence termed mineral oil. It is widely used in lower-capacity bikes, like mopeds, scooters, etc. Although the oil lasts for smaller distances, it is highly affordable, and hence, it has a high demand for its affordability and ability to protect engines.
• The Indian two-wheeler production is on a constant growth scale. One of the most prominent components that is directly impacted by two-wheeler production and consumption is the engine oil segment. Engine oil is one of those products that is highly in demand and lives upon the two-wheeler market.
• Castrol India launched Castrol Magnatec engine oil with Dualock technology, which is designed for non-stop protection of the engine. The specialty of this product is the combination of two different protective molecules that protects the components of the engine with greater efficiency.
• With the increasing demand from various sectors in the country, the consumption of engine oil is expected to boost during the forecast period.

Automotive Industry to Dominate the Market

• The automotive segment is the largest end-user market for lubricants in India. Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in these automobiles. Lubricants have a good share in both the OEM and the aftermarket.
• Typical medium-duty trucks include utility, courier and package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles. However, straight trucks continue to be the predominant medium-duty chassis.
• The country’s automotive industry accounts for around 7.1% of the country’s GDP, in which the two-wheeler segment accounts for a share of around 81% share, owing to the growing young and middle-class population. Additionally, the government’s initiatives, such as the Make in India campaign, are helping the local and state-owned manufacturers to provide their products to consumers and offer stiff competition to the international players.
• Moreover, with the consistent economic development and rising incomes, the automotive industry has been witnessing a continued shift in vehicle preferences, from two- to four-wheelers, which helps to augment the demand for passenger car motor oils (PCMO).
• However, India’s automotive industry has been declining for the past year due to a continuous slump in demand, slowing economic activity, and an increase in vehicle ownership costs. The outbreak of COVID-19 has further affected the economy at present, as all the manufacturing sectors have been stopped due to lockdown.
• Thus, the aforementioned factors are expected to impact the automotive industry, which, in turn, may affect the growth of the lubricant demand in the country.

India Lubricants Market Competitive Analysis

The Indian lubricants market is consolidated, with the top six players dominating the market. The top companies are engaging in competitive strategies and investments to retain and expand their shares. The top six players, namely, Indian Oil Corporation Ltd, HPCL, Castrol Limited, Bharat Petroleum Corporation Limited, Gulf Oil Lubricants India Ltd, and Shell India Markets Private Limited, account for around 73% of the market studied.

Additional Benefits:

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

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.