China Automotive Engine Oil Market Forecast and Opportunities, 2018
Published Date: May - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationChina Automotive Engine Oils Market Size And Forecast
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China Automotive Engine Oils Market size was USD 16 Billion in 2024 and is expected to reach USD 25 Billion by 2032 growing at a CAGR of 5.7% during the period from 2025 to 2032.
Automotive engine oils are specially designed lubricants for internal combustion engines that minimize friction and wear on moving parts. They also act to transfer heat, inhibit corrosion and clean pollutants from engine surfaces. Also, these oils are available in a range of types, such as mineral, semi-synthetic and synthetic and are designed to ensure maximum engine performance and lifespan.
Automotive engine oils are utilized in passenger cars, heavy-duty equipment and commercial vehicles to maintain engines in good condition. Additionally, they play a major role in maintaining engine efficiency, enhancing fuel efficiency and reducing toxic emissions. They need regular oil changes for proper lubrication and to avoid engine wear and heat buildup.
Motor vehicle engine oils are expected to develop in the coming times as motor engine technology evolves and environmental regulations vary. As electric cars become increasingly popular and emissions regulations tighten, new engine oil formulations, such as low-viscosity and green options, will be introduced.
Key Market Drivers
- Increase in Vehicle Production and Sales According to the China Association of Automobile Manufacturers, China will generate 27.02 million vehicles in 2023, increasing demand for high-performance engine oils for both new and existing vehicles. The increase in vehicle production in China directly affects demand for automobile engine oils.
- Expansion of Commercial Vehicles According to the China Association of Automobile Manufacturers, commercial vehicle sales increasing by 10% in 2023, pushing demand for heavy-duty engine oils. Also, the growing number of commercial vehicles, such as trucks and buses, also adds to the expansion of the engine oil market.
- Advancements in Engine Technology According to the China Petroleum and Chemical Industry Federation, demand for synthetic engine oils will rise by 12% in 2023, indicating the rising complexity of modern engines. Specialized engine oils are required due to advancements in engine technology.
Key Challenges
- Fluctuating Oil Prices According to the National Development and Reform Commission, the price of crude oil grew by 16% in 2023, resulting in greater production costs for car engine oils and reducing market profitability. The price of crude oil fluctuates, affecting the cost of making engine oil.
- Technological Advancements in Engine Efficiency According to the China Association of Automobile Manufacturers, new engine technology enhanced fuel efficiency by 10% in 2023, resulting in a 5% reduction in overall engine oil use, notably for conventional oils. Engine oil consumption is reduced as engines become more efficient.
- Intense Competition According to the China Petroleum and Chemical Industry Federation, multinational brands will have 38% of the market share in 2023, limiting prospects for local manufacturers to develop their presence in the car engine oil industry. The presence of well-known worldwide lubricant brands limits the expansion of domestic engine oil manufacturers.
Key Trends
- Demand for Low-Viscosity Engine Oils According to the China Association of Automobile Manufacturers, low-viscosity engine oils will account for 45% of the market in 2023, up from 40% in 2022, reflecting the push for greater fuel efficiency. Low-viscosity engine lubricants are becoming increasingly popular, as they improve fuel efficiency.
- Increasing Adoption of Engine Oil Additives According to the National Petroleum Corporation of China, the market for engine oil additives would expand by 10% in 2023, owing to the desire for greater engine protection and performance in modern automobiles. The demand for engine oil additives is increasing, particularly in high-performance engines.
- Shift Towards Electric Vehicle-Compatible Oils According to the China Association of Automobile Manufacturers, the EV market will grow by 45% in 2023, resulting in increasing need for specialist lubricants intended for electric powertrains, while overall demand for engine oils stays stable. The shift to electric vehicles (EVs) has an impact on the automotive engine oil business.
China Automotive Engine Oils Market Regional Analysis
Here is a more detailed regional analysis of the China Automotive Engine Oils Market
Eastern China
- According to Verified Market Research, Eastern China is expected to dominate the China Automotive Engine Oils Market .
- According to the China Automotive Oil Association, Eastern China is poised to dominate the China Automotive Engine Oils Market . Key cities such as Shanghai and Hangzhou account for more than 35% of the country’s car population. Between 2020 and 2023, the region’s automotive engine oil demand increasing by 25%, owing to increasing vehicle sales and a trend toward high-performance oils.
- Eastern China’s well-established distribution network strengthens its position, with more than 65% of China’s OEM service centers and retail stores based in the region. The efficient transportation infrastructure is cut distribution expenses by 15%, ensuring engine oil supply on time and within budget.
Southern China
- According to Verified Market Research, Southern China is fastest growing region in China Automotive Engine Oils Market .
Southern China is emerging as the fastest-growing area in the China Automotive Engine Oils Market , owing to its large automotive manufacturing base and expanding vehicle fleet. The China - Automotive Oil Association predicts a 26% increase in engine oil demand in Southern China by 2025, owing to rising passenger and commercial vehicle numbers.
- Government initiatives supporting green technology and electric vehicle (EV) adoption are likely to drive market expansion in Southern China, positioning it as a significant participant in the automotive engine oils market. The rapid rise of the automobile industry in locations such as Shenzhen, Guangzhou and Dongguan are a major contributor to the expanding engine oil consumption.
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China Automotive Engine Oils Market Segmentation Analysis
The China Automotive Engine Oils Market is segmented on the basis of Oil Type, Vehicle Type, Distribution Channel and Geography.
China Automotive Engine Oils Market , By Oil Type
- Mineral Engine Oils
- Synthetic Engine Oils
Based on Oil Type, The market is segmented into Mineral Engine Oils and Synthetic Engine Oils. Mineral engine oils dominate the Chinese automotive engine oil market due to their low cost and extensive use in older car models. Synthetic engine oils are the fastest growing, driven by rising consumer demand for high-performance oils in modern vehicles that provide improved fuel efficiency, engine protection and longer oil life.
China Automotive Engine Oils Market , By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
Based on Vehicle Type, The market is segmented into is Passenger Vehicles and Commercial Vehicles. Passenger cars dominate the China Automotive Engine Oils Market , owing to their huge fleet and rising need for engine oils in personal transport. Commercial vehicles are the fastest expanding segment, driven by the e-commerce, logistics and freight industries, increasing the demand for heavy-duty engine oils.
China Automotive Engine Oils Market , By Distribution Channel
- OEM Service Centers
- Online Platforms
Based on Distribution Channel, The market is segmented into is OEM Service Centers and Online Platforms. OEM service centers dominate the China Automotive Engine Oils Market due to their close links with car manufacturers and service networks. Online platforms are the fastest expanding, thanks to e-commerce, convenience and competitive price, as more consumers prefer to shop online.
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Key Players
- BP Plc (Castrol) A global leader in lubricants, with a strong presence in China.
- China National Petroleum Corporation (CNPC) A state-owned enterprise with a significant share in the domestic market.
- China Petroleum & Chemical Corporation (Sinopec) Another major Chinese state-owned company with a large market share.
- ExxonMobil Corporation A global oil and gas company with a substantial presence in the China engine oil market.
- Royal Dutch Shell Plc A multinational energy company with a notable market position in China.
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