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

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  • 80 Pages
  • April 2023
  • Region: India
  • Mordor Intelligence
  • ID: 5656744
The Indian lubricants market is projected to register a CAGR of more than 2% during the forecast period.

Due to the COVID-19 impact in the first half of 2020, the industrial sector in the country witnessed a negative impact. Still, the market has recovered steadily and is expected to reach pre-pandemic levels.

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 the market's growth.
  • The automotive segment dominated the market in the country and continued its dominance during the forecast period.

India Lubricants Market Trends

Engine 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 price 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 used in two-wheelers, like 125-180 cc bikes.
  • According to SIAM, three-wheeler sales grew from 219,446 units to 260,995 units in March 2022 compared to the prior year. The growth in the production of the automotive sector would promote a rapid increase in consumption and demand for engine oils.
  • 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 witnessed a decline of 3.6% from the previous year, with 17.71 million units in 2021. One of the most prominent components that are directly impacted by two-wheeler production and consumption is the engine oil segment. Engine oil is one of those products that are highly in demand and lives in 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.
  • The two-wheelers and passenger cars accounted for 76% and 17.4%, respectively, of the automotive market share in India. Passenger car sales are dominated by small and midsized cars, owing to the growing young and middle-class population. Additionally, the government's initiatives, such as the Make in India campaign, are helping local and state-owned manufacturers to provide their products to consumers and offer stiff competition to the international players.
  • 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. By 2050, the Indian trucking market is anticipated to rise by 4 times, i.e., from 4 million in 2022 to almost 17 million vehicles.
  • 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).
  • India is the world's largest tractor maker, second largest bus manufacturer, and third largest producer of heavy trucks, giving it a significant position in the market for heavy vehicles. In 2021, automobiles production was around 22.93 million units annually.
  • 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 Competitor Analysis

The lubricants market in India 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.

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  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study



4.1 Drivers
4.1.1 Increasing Usage of High-performance Synthetic Lubricants
4.1.2 Expanding Cold Chain Market
4.2 Restraints
4.2.1 Slowdown in the Automotive Sector
4.2.2 Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter Five Forces
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition

5 MARKET SEGMENTATION (Market Size in Volume)
5.1 Product Type
5.1.1 Engine Oil
5.1.2 Transmission and Hydraulic Fluid
5.1.3 Metal Working Fluid
5.1.4 General Industrial Oil
5.1.5 Gear Oil
5.1.6 Grease
5.1.7 Process Oil
5.1.8 Other Product Types
5.2 End-user Industry
5.2.1 Automotive
5.2.2 Industrial
5.2.3 Agriculture
5.2.4 Other End-user Industries

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Bharat Petroleum Corporation Limited
6.4.2 Castrol Limited
6.4.3 Exxon Mobil Corporation
6.4.4 Gulf Oil Lubricants India Ltd
6.4.5 HPCL
6.4.6 Indian Oil Corporation Ltd
6.4.7 Shell India Markets Private Limited
6.4.8 Tide Water Oil Co. (India) Ltd
6.4.9 Total
6.4.10 Valvoline Inc.

7.1 Growing Prominence for Bio-lubricants

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Bharat Petroleum Corporation Limited
  • Castrol Limited
  • Exxon Mobil Corporation
  • Gulf Oil Lubricants India Ltd
  • HPCL
  • Indian Oil Corporation Ltd
  • Shell India Markets Private Limited
  • Tide Water Oil Co. (India) Ltd
  • Total
  • Valvoline Inc.