While overall global demand for finished lubricants has declined more than 4,000 kilotonnes over the past two years, synthetics and synthetic blends have gained more market share during this time, now accounting for 6.1% and 4.1% of global lubricant supply respectively.
The penetration of this product category was earlier limited to the premium passenger car segment, but now synthetic lubricants are also promoted for mid- and small-size cars. Promotional efforts of lubricant marketers and the fact that first-time car owners have no preconceived notions on car maintenance are helping boost growth of synthetics.
In view of the enforcement of stricter emission standards, OEMs in the country have already introduced vehicles that incorporate the latest emission technologies. These vehicles with advanced engine and emission control devices require higher performance lubricants, providing the opportunity for major oil companies to focus on high performance lubricants, including synthetics. As a result, lubricant suppliers are aggressively promoting synthetic lubricants through their OEM partnerships.
Additionally, growing disposable income, improved roads, and the availability of credit has increased demand for luxury and premium cars in India. In creased demand for these cars which utilize synthetic lubricants is expected to create additional opportunities for synthetic lubricant suppliers.
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