Vehicle OEMs are increasingly looking for revenue sources beyond vehicle sales to help boost profitability and are mainly focusing on the fixed operations side of their dealerships. OEMs and their dealerships are investing in advertising and expanding service departments with dedicated quick lube installations to help drive customers back into dealerships for after-sales service of their vehicles.Continue reading
As the autonomous vehicle (AV) space continues to evolve and vehicle OEMs and mobility providers make announcements about million and billion dollar investments and initiatives, it is important to understand from a commercial perspective just where/how/why/when these vehicles will be serviced and the impact on suppliers of branded aftermarket engine oil and related lubricants.
Waymo, a business unit of Alphabet, announced on December 5, 2018 that it is launching a commercial self-driving, ride-hailing service in Phoenix, Arizona called Waymo One.
ABOUT THE PRESENTATION
Effect of Evolving Mobility Patterns on the Long Term PCMO Demand Outlook
The emergence of disrupting forces such as electric vehicles and ride-sharing has the potential to significantly reduce the consumption of PCMO. This presentation will examine all the possible scenarios in the context of evolving mobility patterns and the degree of impact in the long term PCMO demand outlook.
Kline’s Project Manager, Energy, Sharbel Luzuriaga, is presenting based on Kline’s recently published study The PCMO Market in 2040. Contact Sharbel Luzuriaga to discuss the issue and your business needs.
Due to shifting consumer behavior and OEMs’ desire to capture a greater share of the aftermarket sales and service of their vehicles, genuine oil consumption is projected to grow at a strong compound annual growth rate of 4% through 2022 across all major markets, finds the recently published OEM Genuine Oil Brands and Programs in the Consumer Automotive Segment: Market Analysis and Opportunities report by Kline. To listen to key insights from this new study, REGISTER for our complimentary webinar happening on July 17, 2018.
OEM genuine oil includes all engine oils marketed by a passenger vehicle OEM either under the OEM brand name or a trademarked name exclusive to the OEM. Genuine oil is mainly consumed by OEM-franchised workshops and dealerships for servicing new vehicles. Genuine oil consumption is projected to grow for all major OEMs. Toyota leads genuine oil consumption globally, accounting for over 20% of global genuine oil volume in 2017.Continue reading
Join David Tsui, Project Manager in Kline’s Energy/Petroleum Practice, who will provide attendees with the following insights:
- OEM genuine oil penetration by region
- Drivers of genuine oil consumption
- Market trends and opportunities for aftermarket lubricant suppliers
- Genuine oil market outlook
If you are interested in joining us for this webinar, please register by Monday, July 16.
Or read more about our latest report OEM Genuine Oil Brands and Programs in the Consumer Automotive Segment: Market Analysis and Opportunities
The total demand for consumer automotive lubricants in Morocco is an estimated 29 kilotonnes in 2015. The largest share of the demand comes from engine oils, including PCMO, PCDO, and 2T/4T, with a demand of over 70% of the total consumer lubricant volume. This is followed by gear oil with about 13% and grease and ATF with the remaining share.
Low viscosity SAE 0W-XX passenger car motor oil (PCMO) accounted for under 5% of the total global PCMO demand in 2014. This grade is forecast to increase to over 7% by 2023, according to the recently released LubesNet Database.
Moreover, 5W-XX and 0W-XX combined account for about 40% of the total global PCMO market in 2014, according to the latest Global Lubricants: Market Analysis and Assessment report. The continuing global migration to lower viscosity grade PCMO will result in higher penetration of synthetics, semi-synthetics, higher revenues, and, conversely, longer oil drain intervals and suppressed overall PCMO growth.
The increasing demand for lower viscosity PCMO is driven by its ability to improve fuel economy; and original equipment manufacturers (OEMs) recommending these oils to maximize performance and converting their factory and service fill requirements to these low viscosity grade products. In the past, 0Ws would only be found in high performance sports cars and ultra luxury vehicles. Today, a base model Toyota Corolla leaves the factory with 0W-20 in its crankcase. Additionally, the forward-thinking GF-6 product specification upgrade planned in the 2017/18 timeframe will create the technical demand for these lower viscosity grade products.Continue reading
The finished lubricant markets of Africa and the Middle East are traditionally overshadowed by other markets, more notable for their large size, rapid growth or high quality levels. However, the AME region boasts attractive country markets of its own, with high growth potential and quality lubricant output.Continue reading