India Automotive Lubricants Market by Vehicle Type (Passenger Car, etc.), By Lubricant Type (Engine Oil, Grease, etc.), By Base Oil (Mineral Oil, Bio-Based fluid, Synthetic Oil), By Demand Category (OEM Vs. Replacement) Forecast & Opportunities, 2012 – 2022
Published Date: May - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
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The India Automotive Lubricant market was valued at USD 6.94 Billion in 2024 and is anticipated to reach USD 11.39 Billion by 2030 with a CAGR of 8.61% over the forecast period.
The Indian automotive lubricant market has experienced tremendous growth, fueled by a mix of factors such as growing vehicle ownership and rising vehicle maintenance awareness among consumers. As the economy grows, more individuals are buying cars for personal and business use. This increase in vehicle numbers has a direct relationship with an increased need for high-quality lubricants, which are critical to maintaining optimal engine performance and lifespan. The expanding middle class, with more disposable income, is increasingly spending on their cars, resulting in more emphasis on maintenance and the use of higher-quality lubricants.
Market Drivers
Growing Vehicle Ownership
Growing disposable income among the Indian population has resulted in increased vehicle ownership. With improving economic conditions and urbanization, increasing numbers of individuals and families are buying vehicles for personal or business use. This increase is not just observed in urban centers but also in smaller towns and rural areas, where better infrastructure and access to funding have made car ownership more accessible. With an increasing number of cars on the road, there is a parallel increase in the demand for automotive lubricants, which are critical in maintaining engine performance and guaranteeing vehicle longevity.
For example, In August 2024, statistics by the Ministry of Statistics and Programme Implementation indicate that ownership of a vehicle by the lowest-income groups in India increased from 6% to 40% during the last decade. This is indicative of an increased percentage of the nation's poorest households possessing a vehicle.
Increased Awareness of Vehicle Maintenance
Over the past few years, there has been a clear rise in consumer consciousness about the importance of car maintenance. Car owners are now better educated about the importance of service intervals, oil changes, and proper lubricant usage for maximum vehicle performance. This is prompted by exposure to information on digital platforms, service campaigns run by automobile companies, and a general cultural change towards sound car ownership. Consequently, customers are increasingly seeking to use high-performance lubricants that will be able to maximize engine efficiency and increase vehicle lifespan.
This is additionally encouraged by automobile companies, which highlight servicing in their promotional messages. Most automobile brands offer comprehensive servicing schedules and guidelines for lubricants, informing customers how quality lubricants affect automobile wellness. As consumers realize the link between lubricant quality and vehicle performance, they are more likely to invest in high-quality products. This change in consumer behavior fuels an increasing market for high-tech lubricants, opening avenues for manufacturers to launch innovative products based on consumer expectations.
Technological Advances in Lubricant Formulations
Manufacturers invest heavily in research and development on a constant basis to develop formulas that meet the unique demands of contemporary engines. This involves low-viscosity oil that improves fuel efficiency and the use of additives that offer even better protection from oxidation and sludge buildup. As manufacturers develop engines with more precise tolerances and greater performance requirements, specialized lubricants are more and more important. This offers an opportunity for lubricant manufacturers to differentiate their products in a competitive market.
For example, in April 2024, Shell Lubricant India has introduced an improved range of Shell Advance Motorcycle Oil. Its newly developed Advanced AX7 synthetic technology oil provides riders with a remarkably smooth ride, utilizing advanced flexi molecule technology to provide best-in-class power transmission from the engine to the wheels. The Shell Advanced AX5 premium mineral oil has also been improved with Active Cleansing Technology and better specification.
Important Market Challenges
High Competition and Price Pressures
The global automotive lubricant market is characterized by high levels of competition from a wide number of players, from big multinational companies to local small manufacturers. This competition in most cases culminates into aggressive pricing models, with organizations trying to attain market share by pricing themselves low. Though this may serve consumers in the short run by way of lower prices, it presents huge challenges to manufacturers trying to sustain healthy levels of profitability and quality. Achieving profitability in this climate demands tight cost control, innovation, and differentiation of offerings.
Fluctuating Raw Material Prices
Volatility in raw material prices is another major issue facing the automotive lubricant sector. The price of base oils and additives, which are essential ingredients of lubricants, can be volatile due to a host of reasons such as geopolitical tensions, supply chain interruptions, and demand shifts. Volatility in these prices can have a dramatic effect on the cost of production, and this can make it difficult for producers to price competitively while maintaining profitability.
Segmental Insights
Base Oil Insights
The Indian automotive lubricant industry is divided by base oil into three major categoriessynthetic, semi-synthetic, and mineral oils. Synthetic lubricants are developed with sophisticated chemical processes to yield higher performance features. They provide improved lubrication, improved thermal stability, and greater protection against engine wear and tear. Their chemistry enables lower viscosity options, which can enhance fuel efficiency as well as prolong oil change intervals, making them a favorite among performance-conscious consumers.
Semi-synthetic oils blend mineral oil with synthetic additives, achieving compromise between performance and expense. The hybrid formula offers some advantages of the higher-end synthetic oils, including greater engine cleanliness and added protection, at a lower price than completely synthetic oils. Semi-synthetic lubricants appeal to a broad cross-section of consumers who want quality without the high-end price of completely synthetic products. Their flexibility makes them a good fit for different driving patterns and engine configurations, appealing to both occasional drivers and those who drive their cars more frequently.
Mineral oils, which are produced from refining crude oil, have been the traditional choice in the automotive industry and still account for a significant portion of the market. They tend to be less expensive and more readily available, so they are a default option for those on a budget. Although mineral oils might not be as performance-oriented as synthetic or semi-synthetic counterparts, they have seen significant enhancement in performance due to improved formulation and additives, which help to provide the required protection and lubrication to most normal cars.
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Regional Insights
The South region of India became the leading automotive lubricant market in 2023. The increase can be due to a number of factors that have placed South India at the center of the automobile industry. The region is characterized by the presence of numerous automobile manufacturing units, which also act as the main hub of domestic and overseas vehicle production. This strong manufacturing platform not only boosts demand for lubricants but also spurs the growth of specialty products catering to the needs of different vehicle types being manufactured in the region.
Another key reason behind the South's leadership is the growing number of vehicles on Indian roads. Urbanization combined with a growing middle class has boosted vehicle ownership in cities such as Bengaluru, Chennai, and Hyderabad. As increasingly more consumers spend on personal and commercial vehicles, demand for high-quality lubricants has risen sharply. Consumers in South India are also increasingly looking towards the significance of maintaining vehicles in good shape, increasing the demand for top-end lubricants capable of making the engine run smoother and last longer.
The South region is also marked by a well-developed distribution channel for automotive lubricants. Close relationships between manufacturers and local distributors guarantee that a broad portfolio of products is easily accessible to consumers. This availability, coupled with increasing consumer awareness about vehicle maintenance, provides a conducive market for lubricant sales. In addition, local workshops and service centers in South India place high value on the use of quality lubricants, supporting consumer demand for high-end products.
With a solid base of auto manufacturing, growing vehicle ownership, a robust distribution channel, and a trend towards eco-friendly products, South India is an important contender in the automotive lubricant space. This vibrant scenario is expected to evolve further, with technological advancements and customer trends leading the way toward the automotive lubricant future in the region.
Recent Developments
- In July 2024, Autoz365 Lubricants, a Tesla Power India Pvt. Ltd. subsidiary, introduced its lubricants line in Ahmedabad, Gujarat. Developed with advanced formulations, Autoz365 Lubricants aim to improve fuel efficiency while providing exceptional engine protection. As stated by the company's Executive Director, these products are subjected to thorough testing to guarantee they adhere to the highest quality and reliability standards.
- In November 2023, Hindustan Petroleum Corporation Limited (HPCL) entered a long-term partnership with Chevron Brands International LLC, a subsidiary of Chevron Corporation, to launch Chevron's lubricant offerings under the Caltex brand in the Indian market. This agreement includes the introduction of Chevron's Havoline and Delo lubricants.
- In November 2024, EnerG Lubricants and GAT GmbH introduced a range of high-performance automotive additives in India. Among the products unveiled at the event was the ENERG G1 Xtreme PLUS 5W30 API SP - ACEA C3 Fully Synthetic Engine Oil, a premium lubricant that has garnered international approval from Mercedes-Benz.
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Key Market Players
- Indian Oil Corporation Limited
- Castrol India Limited
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
- Gulf Oil International Ltd
- Valvoline Cummins Private Limited
- Shell India Markets Private Limited
- TotalEnergies S.A.
- SAVITA OIL TECHNOLOGIES LIMITED
- Veedol Corporation Limited
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By Vehicle Type |
By Lubricant Type |
By Base Oil |
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By Region |
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