Moroccan Consumer Automotive Segment

The Emerging Moroccan Consumer Automotive Segment Benefits from an Improved Economy and Modernized Vehicle Parc

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.

All new car models recommend 15W‐40 or lower viscosity grades. Like in some North African country markets, the shift from using 20W‐50 to using 15W‐40 engine oils in new cars is gradually taking place. This is especially true in cities, where more than 50% of the vehicles parc is concentrated and consumers are exposed to marketing programs. Young consumers are becoming more knowledgeable about this grade and find it more widely available. Smaller car models tend to require 15W‐40 while larger vehicles require 10W‐40 and lower grades. Lower viscosity grades, such as 10W‐40 and 5W‐40 synthetic oils, are growing particularly fast as European OEMs bring in new models that comply with EU standards.

The use of synthetics is low compared to other markets, especially developed ones. In Morocco, the use of synthetic lubricants represents 11% of the total consumer’s market, and semi-synthetics account for 12%. International companies, such as Vivo Energy and Total, are the largest promoters of using synthetic lubricants. The role of these suppliers and their promotional campaigns have been crucial to the increase of synthetic lubricants.

Although this segment of the business appears to portray good growth and limited competition, entry into this market would not be easy to achieve in a short term, since consumers rely strongly on recognized brands, rather than medium-sized or small blenders or lubricants marketers. The top three suppliers (Total, Vivo Energy, and Afriquia) account for over 75% of the market share.

The consumer automotive lubricant market in Morocco is expected to grow in consumption at a CAGR of 2.3% by 2020, increasing from an estimated 29 kilotonnes to over 32 kilotonnes. This trend reflects the improvement on the national economy and the efforts to modernize the car population, which include complex regulations applied on the import of second-hand vehicles.

These findings are available in the recently published Global Lubricants: Market Analysis and Assessment report.

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