India Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Product Type (Engine Oil, Transmission and Hydraulic Fluid, Metalworking Fluid, General Industrial Oil, Gear Oil, Grease, Process Oil, and Other Product Types) and End-user Industry (Power Generation, Automotive and Other Transportation, Heavy Equipment, Food and Beverage, Metallurgy and Metalworking, Chemical Manufacturing, and Other End-user Industries)

Market Snapshot

Study Period:

2016 - 2026

Base Year:



3 %

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Market Overview

The Indian lubricants market is expected to register a CAGR of around 3%, during the forecast period. One of the major factors driving the growth of the market is the increasing usage of high-performancesynthetic lubricants.

  • On the flipside, the slowdown in the automotive sector is likely to hinder the market growth.
  • Automotive and other transportation segment dominated the market in the country.

Scope of the Report

The Indian lubricants market report includes:

Product Type
Engine Oil
Transmission and Hydraulic Fluid
Metalworking Fluid
General Industrial Oil
Gear Oil
Process Oil
Other Product Types
End-user Industry
Power Generation
Automotive and Other Transportation
Heavy Equipment
Food and Beverage
Metallurgy and Metalworking
Chemical Manufacturing
Other End-user Industries

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Key Market Trends

Transmission and Hydraulic Fluids - One of the Fastest Growing Segments

  • Hydraulic oils and transmission fluids transmit power in hydraulic equipment and are used in power transmission applications. They are incompressible fluids that are used as the power transmitting media in hydraulic systems.
  • Hydraulic power systems involve a series of tubes or elastomeric hoses for transmitting pressurized fluid, a pump (as a power source), and some type of control (typically a series of valves, actuators, or cylinders) as the power transmission media, hydraulic fluids are indispensable in these systems.
  • Transmission oils are essential to clean and protect the surface, condition gaskets, rise temperature range, increase rotational speed, and improve cooling function, and reduce high temperatures. They are used to lubricate, transfer energy, ensure smooth transmission in motor vehicles, agriculture equipment, construction, and mining equipment.
  • There are both automatic and manual transmission fluids for automatic and manual transmission vehicles respectively, although automatic fluids are gaining increasing popularity. Most automatic transmission systems use automatic transmission fluid (ATF) as a hydraulic fluid and a gear lubricant. Automatic transmission fluids could be pressurized by a pump and regulated by valves, similar to other hydraulic systems.
  • Hydraulic fluids are used as a medium for transferring power and energy in hydraulic systems. Additionally, they are used for heat transfer, sealing, contaminant removal, and lubrication.
  • The majority of the hydraulic fluids are based on mineral oils. The applications of these fluids include excavators, hydraulic brakes, lifts, flight control systems, power steering systems, excavator booms, dippers, hydraulic brakes, power steering systems, mechanical transmission systems, lifts, and general industrial machinery.
  • With the increasing demand from various sectors in the country, the consumption of transmission and hydraulic fluids is expected to boost, during the forecast period.

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Automotive and Other Transportation - The Dominant Segment

  • 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.
  • However, India’s automotive industry has been declining from the past one 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 has been stopped due to lockdown.
  • Thus, the aforementioned factors are expected to impact the automotive industry, which in turn will affect the growth of the lubricants demand in the country.

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Competitive Landscape

The market studied is consolidated among the top seven players. The top three players account for around 50% of the market studied. The top companies have been utilizing competitive strategies and investments, to retain and expand their shares. Major players in the market include Castrol Limited (BP), Bharat Petroleum Corporation Limited, Gulf Oil International, HPCL, and Indian Oil Corporation Ltd, among others.

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Table Of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Increasing Usage of High-performance Synthetic Lubricants

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Slowdown in Automotive Sector

      2. 4.2.2 Other Restraints

    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 Consumers

      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


    1. 5.1 Product Type

      1. 5.1.1 Engine Oil

      2. 5.1.2 Transmission and Hydraulic Fluid

      3. 5.1.3 Metalworking 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 Power Generation

      2. 5.2.2 Automotive and Other Transportation

      3. 5.2.3 Heavy Equipment

      4. 5.2.4 Food and Beverage

      5. 5.2.5 Metallurgy and Metalworking

      6. 5.2.6 Chemical Manufacturing

      7. 5.2.7 Other End-user Industries


    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 Amsoil Inc.

      2. 6.4.2 Apar Industries Ltd

      3. 6.4.3 Balmer Lawrie & Co. Ltd

      4. 6.4.4 Bechem

      5. 6.4.5 Bharat Petroleum Corporation Limited

      6. 6.4.6 Blaser Swisslube India Pvt Ltd

      7. 6.4.7 Castrol Limited (BP)

      8. 6.4.8 Continental Petroleums Limited

      9. 6.4.9 Exxon Mobil Corporation

      10. 6.4.10 FUCHS

      11. 6.4.11 GP Petrolemus Ltd

      12. 6.4.12 Gulf Oil International

      13. 6.4.13 Hardcastle Petrofer

      14. 6.4.14 HPCL

      15. 6.4.15 Idemitsu Lube India Pvt Ltd

      16. 6.4.16 Indian Oil Corporation Ltd

      17. 6.4.17 Kluber Lubrication

      18. 6.4.18 Panama Petrochem Ltd

      19. 6.4.19 Royal Dutch Shell Plc

      20. 6.4.20 Total

      21. 6.4.21 Veedol International Limited

  7. *List Not Exhaustive

    1. 7.1 Increasing Demand for Re-refined Lubricants

    2. 7.2 Other Opportunities

** Subject to Availability

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