India Automotive Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The rise in the number of passenger cars in the nation will be the main factor driving the demand for automotive lubricants during the forecast period.
• On the other hand, the growing number of electric cars is likely to slow the growth of the market.
• The engine oil product type was the most popular on the market, and this is likely to stay the case over the next few years.
• In the future, the market is likely to benefit from the opening of new manufacturing plants and the increased capacity of the plants that are already there.

India Automotive Lubricants Market Trends

Engine Oil to Dominate the Market

• Engine oils are widely used for lubricating internal combustion engines in different types of automobiles. They are generally composed of base oils and additives.
• The base stock is either made using petroleum, synthetic chemicals, or both. The base stock is responsible for lubricating the engine's moving parts and removing the excess built-up heat.
• Various additives added to engine oils include oxidation inhibitor additives, dispersant additives, detergent additives, anti-foam additives, viscosity index modifiers, anti-wear additives, corrosion inhibitor additives, and antifreeze additives. It controls the oil's viscosity and lubricity and protects the engine parts against wear and tear.
• Some of the most important things that engine oils do are protect against corrosion and wear and tear so that the engine lasts longer and works better, reduce friction so that the engine works better and uses less fuel, get rid of impurities so that the engine is clean, make the engine as efficient as possible, and keep energy from escaping by keeping it cool.
• The country witnessed a significant increase in the sales of passenger vehicles and commercial vehicles. For example, in FY 2021-2022, 3 069 499 passenger vehicles were sold in the United States. This is 13% more than in FY 2020-2021.
• while commercial vehicle sales increased by 26% between 2020-21, reaching 716,566 in 2021-2022.Thus, with the increasing sales of commercial and passenger vehicles in the country, the demand for engine oils subsequently increases during the forecast period.
• So, because of all of these things, the engine oil segment is expected to lead the lubricants market in India over the next few years.

Rising Use of Passenger Vehicles In The Country

• Automotive lubricants provide durability and protection and increase the efficiency of passenger vehicles. As a result, the improving passenger vehicle segment will significantly fuel market growth during the forecast period.
• Transmission and gear oil are consumed significantly in passenger vehicles.
• The growing preference for automatic transmissions over manual transmissions in passenger vehicles has increased demand for automatic transmission oils.
• Passenger vehicles require high-performance greases. Due to properties like mechanical stability, temperature tolerance, water resistance, and oxidant resistance, grease is used in various auto parts, such as wheel bearings, universal joints, suspensions, gears, switches, and connectors.
• Lubricants are used a lot to keep gear teeth from breaking from friction and to make sure things work smoothly and well.
• The country witnessed a significant increase in the production of passenger vehicles. For instance, the production of passenger vehicles reached 3,650,698 for the FY 2021-2022, representing an increase of 19% compared to the FY 2020-21.
• Furthermore, according to the latest data published by the Society of Indian Automobile Manufacturers, domestic sales of passenger vehicles reached 2,76,231 units in November 2022. Thus, with the rising production and sales of passenger vehicles, the demand for automotive lubricants increases significantly in the country.
• Therefore, owing to all the aforementioned factors, the expanding passenger vehicle segment is likely to increase the demand for lubricants in India during the forecast period.

India Automotive Lubricants Market Competitor Analysis

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