Market Overview

The Indian lubricant market is expected to register a CAGR of 4.64%, during the forecast period, 2019-2024. The major factors driving the growth of the market are the increasing vehicular production along with the increasing construction and infrastructure activities in the country.

• Increasing drain intervals in the automotive and industrial sectors and the modest impact of electric vehicles in the future are likely to hinder the market growth.

• By product type, engine oil dominated the market in 2018.

• Automotive and other transport dominated the market in 2018, owing to the increasing production of automobiles in the country.

Scope of the Report

The Indian lubricants market report includes:

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Key Market Trends

Increasing Demand from the Automotive Industry

• India is the second largest lubricant consumer in the region, and third in the world, after the United States and China. The country is the fourth and sixth largest producer of commercial vehicles and passenger cars, respectively.
• 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).
• Furthermore, as the companies are interested in entering the rural markets, with their improvement, the automotive industry is expected to witness further growth. A share of passenger vehicle sales originates from rural areas, especially utility vehicles and SUVs, which are used for both transporting goods and passengers.
• In India, with the increasing demand for vehicles, several automakers have started investing heavily in various segments of the industry. Furthermore, the Indian government has been rolling out initiatives to attract FDI in the automotive industry, allowing 100% FDI under the automatic route. The government has also planned to introduce a new Green Urban Transport Scheme with central assistance of about INR 250 billion, to boost the growth of urban transport, along the low-carbon path, with an aim to reduce air pollution substantially.
• The aforementioned growth in the automotive industry is expected to boost the demand for lubricants in the country.

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