The passenger car lubricants market in India is witnessing a massive shift in OEM-recommended viscosity grades, according to the latest findings from the Opportunities in Lubricants 2010: India Market Analysis report by worldwide consulting and research firm Kline & Company.
While the older passenger cars in India are still running on viscosity grades such as SAE 20W-40 and SAE 20W-50, the OEMs are recommending SAE 5W-30 and SAE 5W-40 for new passenger cars due to their superior fuel economy characteristics. This significant development will help the Indian consumer lubricants market up thequality curve faster.
Although SAE 20W-40 and SAE 20W-50 are still the leading viscosity grades in the petrol-driven passenger cars lubricants market, accounting for 60% to 70% of the passenger car motor oil market in India, this percentage is expected to decline in the next five years. The usage of other viscosity grades such as SAE 10W-30 and SAE 10W-40 is limited to a few OEMs and is declining in favor of 5Ws.
Introduction of stricter emission norms for passenger cars have already forced various OEMs to phase out older model vehicles in favor of newer vehicles. Also, the growing purchasing power of the population and lucrative financing options is having a positive impact on growth in new car ownership. The increase in sales of new cars will further fuel the demand for lower viscosity grades in the coming years.
Synthetic lubricants have also made inroads into the passenger car dealerships segment in India. The penetration of this product category was earlier limited to premium passenger car segment, but now synthetic lubricants are available in mass-market new-car dealerships as well. Private lubricants manufacturers are aggressively marketing synthetic lubricants to this channel, and the dealerships are embracing these products in order to increase their revenues. Together, suppliers and the dealerships are making an effort to educate customers about the benefits of using synthetic lubricants. The major viscosity grades in synthetic lubricants include SAE 5W-30, SAE 5W-40, and SAE 0W-40.
Although the penetration of lower viscosity grades and synthetic lubricants is still low in India, it offers immense potential for future growth.
Total demand for finished lubricants in India is estimated at over 1,400 kilotonnes in 2009. The commercial automotive segment represents about 53% of the total lubricants market, followed by the industrial segment at 34% and the consumer automotive segment at 13%.
Opportunities in Lubricants 2010: India Market Analysis focuses on key trends, developments, challenges, business opportunities and threats and competitive positioning amongst the MNC suppliers, NOC suppliers, and other local independents the Indian lubricants market.
For more information about Kline’s Opportunities in Lubricants 2010: India Market Analysis visit /reports/y691