Indian Finished Lubricants Market

Group II Basestocks Witness Increased Usage in the Indian Finished Lubricants Market

India is the third-largest lubricant-consuming market in the world at approximately 2.3 million metric tons in 2015, according to Kline’s estimates. Generally, the Indian finished lubricant market has outpaced global finished lubricant demand growth. Since 2010, the finished lubricant demand growth in India has exceeded the global finished lubricant demand growth, except for 2013, where demand fell marginally in the country. The penetration of higher quality lubricants in India compared to the developed markets, such as North America and Western Europe, is small; however, the market is exhibiting a clear shift towards the use of better quality lubricants and basestocks.

According to Anuj Kumar, Project Manager in Kline’s Energy Practice, “This play toward Group II is eerily similar to the same shift that was seen in developed markets. Government regulations, fuel economy mandates, and lube performance demands by OEMs, coupled with the enticing pricing for Group II (as compared to Group I) has brought about this sense of déjà vu in the market.” Continue reading