Market Trends of Pakistan Lubricants Industry
Engine Oil to Dominate the Market
- In the automobile sector, lubricants with many qualities are used in multiple application areas for many purposes, including decreasing friction, preventing corrosion and rust development, and maintaining the component's cleanliness.
- The most common form of lubricant used in the automotive sector is engine oils. Engine oils keep the engine clean and stop particle buildup and rust development. Additionally, engine oils increase performance and fuel economy, lengthen engine life, and lower vehicle emissions. Engine oils are widely used to lubricate internal combustion engines and generally comprise 75-90% base oils and 10-25% additives.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), the number of passenger cars sold in Pakistan in 2022 reached 188,318 units.
- According to the International Council on Clean Transportation, Pakistan's government established an ambitious National Electric Vehicles Policy (NEVP), with objectives and incentives aimed at capturing 30% of all passenger car and heavy-duty truck sales by 2030 and 90% by 2040. It sets even higher targets for two- and three-wheelers and buses, with 50% new sales by 2030 and 90% by 2040.
- DICE Foundation, a group of Pakistanis in the United States, Canada, and the United Kingdom, is preparing to launch the country's first electric automobile.
- According to the Pakistan Automotive Manufacturers Association (PAMA), the production of public transport, such as buses, increased from 661 units in 2021 to 701 units in 2022.
- With all the above factors, the demand for engine oils is expected to increase at a moderate pace in the forecasted period in Pakistan.
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Automotive and Transportation to Dominate the Market
- In the automobile sector, lubricants with a wide range of qualities are used in multiple application areas for many purposes, including decreasing friction, preventing corrosion and rust development, and maintaining the cleanliness of the components, among others.
- The most common form of lubricant used in the automotive sector is engine oils. Engine oils are used to keep the engine clean and stop particle buildup and rust development. Additionally, engine oils increase performance and fuel economy, lengthen engine life, and lower vehicle emissions.
- According to the statistics of the Pakistan Automotive Manufacturers Association (PAMA), in October 2023, a total of 250.0 units were recorded as trucks and buses.
- According to the Arab News, automobile sales were 60 percent lower in 2023 than the previous year. In the next two years, Pakistan's economic indicators are likely to improve, which will likely increase annual vehicle sales to 350,000 units, the country's top official said.
- Furthermore, according to the International Organization of Motor Vehicle Manufacturers (OICA), the sales of new vehicles in Pakistan were 227,392 units in 2022, which increased by 21.1 % from 2019 to 2022.
- As the automotive industry continues to grow and modernize, the need for high-quality lubricants for vehicles and machinery increases in Pakistan.
- Factors such as expanding road networks, rising vehicle ownership, and industrial developments contribute to the dominance of automotive industries in the Pakistan Lubricants Market.
