China's engine oil market to maintain steady growth

Strong auto sales should drive engine oil revenues higher according to research.

A new report from data consultancy Research & Markets shows the market for automotive engine oil should remain strong as China’s vehicle fleet continues to grow.

Waning sales in the two-wheel segment will also likely be offset by increasingly affluent consumers purchasing cars instead of motorbikes.

The report, entitled China Automotive Engine Oil Market Forecast & Opportunities, 2018 also details the growth prospects for the southern and western regions of of the country, which may see an asset for engine oil producers as the government increases the number of commercial vehicles in these regions.

Also, a number of Cleaner Transport initiatives are likely to drive up the number of electric and hybrid vehicles, which the report claims would greater maintenance and require synthetic oils, providing more opportunities for high-end lubes products.

Qianzhan Research, another data consultancy, predicts lubricants demand will increase by around 5% per annum over the next five years, eventually reaching over eight million tons by 2020, when it will overtake the US as the world’s largest consumer of lubricants products.