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

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

The Pakistani lubricants market (henceforth, referred to as the market studied) is expected to register a CAGR greater than 1%, during the forecast period.

COVID-19 had a negative impact on the market studied due to lockdowns imposed by the government. However, the market has seen a recovery phase in the year 2021. According to CEIC, Motor vehicles sales in Pakistan grew by 5.9% from July 2006 till Dec 2021. The total production of automotive vehicles in the year 2020 was reported at 117,375 units.

The major factor driving the growth of the market studied is the augmenting textile production in Pakistan. With the slight increase in the automotive sector in the past year the market studied is expected to see an increase in demand in the forecasted period.

• Potential growth in the energy sector is likely to act as an opportunity for the market studied.
• The engine oil segment dominated the market studied and is expected to continue its dominance during the forecast period.

• Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
• They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the heat transfer and reducing tension during the contact of parts.
• According to CEIC data, Pakistan's car sales in December 2021 were 27,666 units. In December 2021, Pakistani motor vehicle sales increased by 93.5 percent, compared to 29.6 percent the previous month.
• In order to battle pollution, the country has planned to shift to Electric vehicles, and with tax braked Electric vehicles have become more affordable to the public.
• Recently Pakistan's government established an ambitious National Electric Vehicles Policy (NEVP), with objectives and incentives aimed at capturing 30 percent of all passenger car and heavy-duty truck sales by 2030, and 90 percent by 2040 in the country. It sets even higher targets for two- and three-wheelers, as well as buses: 50% new sales by 2030, and 90% by 2040.
• DICE Foundation, a group of Pakistanis located in United States, Canada, and United Kingdom, is prepared to launch the country's first electric automobile.
• With all the above factors the demand for Engine Oils is expected to increase at a moderate pace in the forecasted period.

• The Textile Industry contributes close to 8% to the total GDP of the country and is the 8th largest exporter of textile commodities in Asia.
• According to the Government of Pakistan Ministry of Textile Industry, the textile industry in Pakistan has a significant impact on the business economy, contributing 57 % of the country's exports.
• Lubricants, such as greases, heat transfer fluids, gear oils, compressor oils, transmission, and hydraulic fluids, and anti-static oils are used in the textile industry.
• According to Pakistan Bureau of Statistics, textile and apparel exports brought in $6.021 billion in fiscal year 2021-2022, compared to $4.758 billion in July-October 2020.
• With global demand for Apparel clothing increasing at 2.5% Year on Year the opportunity to export apparel garment from Pakistan also increases considerably there by resulting in the increase in the usage of Lubricants in the country in the coming year.

The top five players, namely Shell Pakistan Limited, Total PARCO Pakistan Limited, Chevron Pakistan Limited, MAL Pakistan, and Pakistan State Oil Company Limited, account for more than 90% of the market studied.

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