India Synthetic Automotive Engine Oil Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (India)

The India synthetic automotive engine oil market is set to surge from US$ 699 million in 2024 to a projected size of US$ 1000 million by the end of 2031, according to recent market analysis. The growth is attributed to the rising demand for passenger vehicles, heightened awareness of engine performance, and the emphasis on environmental sustainability and fuel efficiency.

• Essential for High-Performance Engines: High-performance synthetic engine oil has become indispensable in the automotive sector. It overcomes the limitations of conventional engine oil and offers advantages such as extended service life, enhanced energy efficiency, and long-term cost-effectiveness. These high-performance engine oils find applications in a range of modern and advanced engines, including gas-powered, gasoline-powered, hybrid, and more.
• Increasing Demand for Passenger Cars: The escalating demand for passenger cars worldwide is a significant driver of market growth. This is largely attributed to the rising disposable income of India's middle-class population.
• Stable Viscosity and Purity: Synthetic engine oil's higher viscosity index ensures stable viscosity across a wide temperature range, offering consistent performance in extreme conditions. Moreover, these oils offer a higher level of purity compared to conventional mineral oils, providing optimal protection against wear and tear.

Factors Driving Demand for Synthetic Automotive Engine Oil

1. Increased Vehicle Production: The India automotive industry is a major driver of the economy, experiencing robust growth due to rising disposable incomes and a strong demand from the younger population. In December 2022 alone, India produced a staggering 1,557,238 passenger vehicles, three-wheelers, two-wheelers, and quadricycles. With India being a significant player in the global heavy commercial vehicles market and substantial foreign direct investments, the market for engine oil is expected to expand further.

2. Engine Performance Awareness: Modern automobile engines operate at higher RPMs and require efficient engine oil to function seamlessly. Synthetic automotive engine oil offers numerous benefits over conventional oil, including temperature stability, high viscosity index, and overall improved performance. As vehicle owners prioritize engine performance maintenance, the demand for high-performance engine oils continues to rise.

3. Emphasis on Environmental Sustainability and Fuel Efficiency: Manufacturers in the synthetic automotive engine oil industry are well-positioned to capitalize on the growing emphasis on fuel economy, driven by concerns about environmental sustainability and stricter fuel efficiency regulations. Synthetic engine oil reduces friction, enhancing overall vehicle performance and engine efficiency.

Challenges Faced by Automotive Engine Oil Manufacturers

1. Electric Vehicle (EV) Disruption: India's EV industry is rapidly accelerating, thanks to initiatives like the FAME India program. Electric vehicles generate minimal friction, which is expected to reduce the demand for synthetic automotive engine oil, posing a potential challenge to manufacturers.

Regional Insights

1. Western India Sales Projection: West India, home to well-established domestic players, is expected to maintain its prominent position in the synthetic engine oil market. As the vehicle sector continues to thrive, steady growth is anticipated in this region.

2. Growth Outlook for North India: North India plays a vital role in India's GDP and features key sectors like automobiles, hydropower, and infrastructure. Government initiatives aimed at improving the business environment in the automobile industry are expected to drive further growth in the synthetic automotive engine oil market.

Competitive Landscape

The India synthetic automotive engine oil market is characterized by the dominance of key players holding 55% to 65% of the market share. Intense competitiveness prevails in the market, with numerous small- and medium-sized businesses operating alongside well-established players at the state and national levels.

Key Companies Profiled:

• Indian Oil Corporation Limited
• HPCL
• BPCL
• Castrol Ltd.
• Savita Oil
• Shell PLC
• Valvoline Inc.
• Amsoil Inc.
• Gulf Oil International
• Motul
• ExxonMobil Corporation
• BP PLC
• Phillips 66 Company

Segmentation of India Synthetic Automotive Engine Oil Industry Research

By Vehicle Type:

• Passenger Cars
• LCVs
• HCVs
• Two Wheelers
• Racing Vehicles
• Marine

By Product Type:

• Full Synthetic Engine Oil
• Synthetic Blend Engine Oil
• High Mileage Synthetic Engine Oil
• Racing Synthetic Engine Oil
• Others

By Base Oil Type:

• Group III Base Oil
• Group IV Base Oil
• Group V Base Oil

By Region:

• North India
• South India
• East India
• West India

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