Indian lube quality driven by OEMs
India's automotive lubes market is set for a dramatic rise in viscocity grades, driven by OEM recommendations.
|
Delhi traffic Image: N-o-m-a-d |
The latest Kline report, Opportunities in Lubricants 2010: India Market Analysis, predicts a "massive shift in OEM-recommended viscosity." While as much as 70% of the current market is still based on SAE 20W-40 and 20W-50 grades, Kline reports an expected decline within the next five years. Even SAE 10W-30 and 10W-40 grade sales are expected to fall as 5W products start to flow into the mass market.
In it's blog, Kline states that a combination of stricter emission laws and greater disposable income boosting new car sales, means the OEM recommendations for high quality lubes including synthetics have a much greater chance of being adhered to.
The demand for higher quality lubes is also starting to make inroads into India's car dealership network beyond just premium vehicles. As a means of boosting revenue, dealerships are open to more agressive marketing and education programmes from private lubes producers.
In 2009, India's finished lubricants market accounted for some 1,400ktonnes, with the majority (53%) being used by the commercial vehicle sector and only 13% by consumer automotives. However, Kline predicts the future for synthetics and low viscosity oils as having "immense potential."
