India Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The India Lubricants Market is segmented by Product Type (Engine Oil, Transmission and Hydraulic Fluid, Metal Working Fluid, General Industrial Oil, Gear Oil, Grease, Process Oil, and Other Product Types) and End-user Industry (Automotive, Industrial, Agriculture, and Other End-user Industries).

Market Snapshot

india lubricants market
Study Period: 2016 - 2026
Base Year: 2021
CAGR: >1.5 %
lubricants market

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Market Overview

The Indian lubricants market was valued at over 2,610 kiloton in 2020, and the market is projected to register a CAGR of more than 1.5% during the forecast period (2021-2026).

Due to the COVID-19 impact in the first half of 2020, the industrial sector in the country witnessed a negative impact in 2020. Due to the lockdown during the pandemic period, automobile production has been halted, and plants are temporarily shut down. This, in turn, affected the demand for lubricants in 2020. The automobile production in the country declined to 2.16 million units in the first nine months of 2020 from 3.51 million units in the same period of 2019.

  • In the short term, major factor like the increasing usage of high-performance synthetic lubricants is expected to drive the demand for lubricants in the country.
  • On the flip side, the slowdown in the automotive sector is likely to hinder market's growth.
  • The automotive segment dominated the market in the country with more than 50% share by end-user industry in 2020.

Scope of the Report

The Indian lubricants market is segmented based on the product type and end-user industry. By product type, the market is segmented into engine oil, transmission and hydraulic fluid, metalworking fluid, general industrial oil, gear oil, grease, and other product types. By end-user industry, the market is segmented into automotive, industrial, agriculture, and other end-user industries. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Product Type
Engine Oil
Transmission and Hydraulic Fluid
Metal Working Fluid
General Industrial Oil
Gear Oil
Grease
Process Oil
Other Product Types
End-user Industry
Automotive
Industrial
Agriculture
Other End-user Industries

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Key Market Trends

Engine Oil Segment Has Dominated the Demand

  • The three typical types of engine oil can be listed as full synthetic oil, semi-synthetic oil, and mineral oil.
  • Full synthetic oil is the most refined type of engine oil that is commonly used in high-performance bikes. This oil has a longer shelf life as compared to the other two types of engine oils. The only downside of this engine oil is the heavy pricing associated with synthetic oil.
  • Semi-synthetic oil is a mixture of non-conventional and high-performance fluid additives combined with traditional engine oil. Semi-synthetic oil exhibits the properties of both synthetic oil in terms of their performance. Typically, this oil is used in low-capacity engines, like 125-180 cc bikes.
  • Mineral oil is the most used type of engine oil in the Indian scenario. It is extracted from petroleum products. and is hence termed mineral oil. It is widely used in lower-capacity bikes, like mopeds, scooters, etc. Although the oil lasts for smaller distances, it is highly affordable, and hence, it has a high demand for its affordability and ability to protect engines.
  • The Indian two-wheeler production is on a constant growth scale. One of the most prominent components that is directly impacted by two-wheeler production and consumption is the engine oil segment. Engine oil is one of those products that is highly in demand and lives upon the two-wheeler market.
  • Castrol India launched Castrol Magnatec engine oil with Dualock technology, which is designed for non-stop protection of the engine. The specialty of this product is the combination of two different protective molecules that protects the components of the engine with greater efficiency.
  • With the increasing demand from various sectors in the country, the consumption of engine oil is expected to boost during the forecast period.
lubricant industry in india

Automotive Industry to Dominate the Market

  • The automotive segment is the largest end-user market for lubricants in India. Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in these automobiles. Lubricants have a good share in both the OEM and the aftermarket.
  • Typical medium-duty trucks include utility, courier and package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles. However, straight trucks continue to be the predominant medium-duty chassis.
  • The country’s automotive industry accounts for around 7.1% of the country’s GDP, in which the two-wheeler segment accounts for a share of around 81% share, owing to the growing young and middle-class population. Additionally, the government’s initiatives, such as the Make in India campaign, are helping the local and state-owned manufacturers to provide their products to consumers and offer stiff competition to the international players.
  • Moreover, with the consistent economic development and rising incomes, the automotive industry has been witnessing a continued shift in vehicle preferences, from two- to four-wheelers, which helps to augment the demand for passenger car motor oils (PCMO).
  • However, India’s automotive industry has been declining for the past year due to a continuous slump in demand, slowing economic activity, and an increase in vehicle ownership costs. The outbreak of COVID-19 has further affected the economy at present, as all the manufacturing sectors have been stopped due to lockdown.
  • Thus, the aforementioned factors are expected to impact the automotive industry, which, in turn, may affect the growth of the lubricant demand in the country.
lubricant industry

Competitive Landscape

The Indian lubricants market is consolidated, with the top six players dominating the market. The top companies are engaging in competitive strategies and investments to retain and expand their shares. The top six players, namely, Indian Oil Corporation Ltd, HPCL, Castrol Limited, Bharat Petroleum Corporation Limited, Gulf Oil Lubricants India Ltd, and Shell India Markets Private Limited, account for around 73% of the market studied.

Recent Developments

  • In June 2021, IOCL signed an MOU for "Investment Promotion" between the Government of Gujarat and IndianOil for setting up a Petrochemical and Lube Integration (LuPech) Project and Acrylics/Oxo Alcohol Project, along with other infrastructure projects at its Gujarat Refinery at Vadodara.
  • In February 2020, HPCL has launched the entire range of lubricants and specialty fluids for the BS VI, electric, and hybrid vehicles.
  • In December 2019, Honda Motorcycle & Scooter India Pvt. Ltd tied up with Indian Oil Corporation Ltd, to launch a new range of ‘Servo Honda’ engine oil.
  • In December 2019, Exxon Mobil Corp., which sells Mobil lubricants, planned to set up a lubes blending plant in India.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Usage of High-performance Synthetic Lubricants

      2. 4.1.2 Expanding Cold Chain Market

    2. 4.2 Restraints

      1. 4.2.1 Slowdown in the Automotive Sector

      2. 4.2.2 Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Product Type

      1. 5.1.1 Engine Oil

      2. 5.1.2 Transmission and Hydraulic Fluid

      3. 5.1.3 Metal Working Fluid

      4. 5.1.4 General Industrial Oil

      5. 5.1.5 Gear Oil

      6. 5.1.6 Grease

      7. 5.1.7 Process Oil

      8. 5.1.8 Other Product Types

    2. 5.2 End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 Industrial

      3. 5.2.3 Agriculture

      4. 5.2.4 Other End-user Industries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Bharat Petroleum Corporation Limited

      2. 6.4.2 Castrol Limited

      3. 6.4.3 Exxon Mobil Corporation

      4. 6.4.4 Gulf Oil Lubricants India Ltd

      5. 6.4.5 HPCL

      6. 6.4.6 Indian Oil Corporation Ltd

      7. 6.4.7 Shell India Markets Private Limited

      8. 6.4.8 Tide Water Oil Co. (India) Ltd

      9. 6.4.9 Total

      10. 6.4.10 Valvoline Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The India Lubricants Market market is studied from 2016 - 2026.

The India Lubricants Market is growing at a CAGR of >1.5% over the next 5 years.

Bharat Petroleum Corporation Limited, HPCL, Indian Oil Corporation Ltd, Castrol Limited, Gulf Oil Lubricants India Ltd are the major companies operating in India Lubricants Market.

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