Market Trends of India Automotive Coolant Industry
Increasing Investment in the Automobile Sector in the Country
- In order to keep up with the growing demand, several automakers have started investing heavily in various segments of the industry during the last few years. With the FDI policy for the automobile sector allowing 100% foreign domestic investment (FDI) under the automatic route, FDI equity inflows in the automobile industry are increasing at a high rate.
- Several global original equipment manufacturers (OEMs) are investing in the country either through joint ventures with established players or, after the relaxation of FDI norms, investing directly in setting up their own production units or enhancing the sales and dealership networks across the country. Some of the recent/planned investments and developments in the automobile sector in India are as follows:
- In February 2022, the government received an investment proposal worth INR 45,016 crores (USD 6.04 billion) from 20 automotive companies under the PLI Auto scheme. This scheme is expected to create an incremental output of INR 2,31,500 crore (USD 31.08 billion).
- The Indian government has outlined USD 7.8 billion for the automobile and auto component sector in Production-Linked Incentive (PLI) schemes under the Department of Heavy Industries.
- With the growing investments in the automotive sector, the production of automobiles in the country is expected to ramp up to meet the growing demand. The trend is expected to continue during the forecast period.
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Ethylene Glycol Segment Captures the Largest Market Share
- Ethylene glycol is a toxic material that can lead to birth defects, reproductive damage, or even death. Thus, it requires very careful handling.
- It has many commercial and industrial applications, including anti-freeze and coolant. It prevents the car's engine from freezing in the winter and acts as a coolant to reduce overheating. Some of the ethylene glycol-based coolants available in India are:
- The Wuerth anti-freeze coolant is being adopted in Indian, Japanese, American, European, and Korean vehicles by various automakers. The color of the oil is green, and it is ethylene glycol based.
- The Euroils Euro Turbo Cool Coolant Concentrate Green with ethylene glycol base makes it ideal for radiators. The oil has an oil-to-water dilution ratio of 1:2. With the increasing adoption of ethylene glycol-based coolants in automobiles due to its cost advantage over propylene glycol, the segment is expected to grow at a high rate.
