Indian Auto Lubricants Aftermarket Outlook, 2017

Indian Auto Lubricants Aftermarket Outlook, 2017

This Industry Docket throws light on the aftermarket potential for automotive lubricants in the Indian market. The potential has been assessed and presented separately by vehicle segment, i.e. 2 wheelers, passenger cars, commercial vehicles and tractors, and further by product segment, i.e. engine oil, transmission oil and grease. For lubricant suppliers that are looking to make an entry into the Indian aftermarket and are looking to understand the size of the opportunity and key attributes of stakeholder behavior in the aftermarket, this docket is the ideal and most comprehensive starting point

  • Frost & Sullivan - Introduction
  • Frost & Sullivan Advisory
    • Highly competitive automotive lubricants market calls for continual investments in ATL* & BTL* marketing activities
    • Top issues for Global CEOs (Suppliers' field of vison)
      • Implications of low entry barriers and changing requirements based on changing engine technology and emissions regulations
    • Indian Automotive Lubricant IAM* to grow at CAGR of 5.9% by 2022; Mineral oils dominate currently, but to lose share to synthetic oils
    • The Supplier Field of Vision - What to look out for in India?
      • Engine technology and Emission Regulations to drive demand for improved and specialty automotive lubricants in the Indian market
    • Key Factors Influencing the Future of the Automotive Lubricants Business
      • Competition Intensity, Engine Technology, Emissions Regulations and Customer Awareness and Buying Behavior
  • Scope & Limitations
  • Key Market Takeaways: India
    • Global Automotive Lubricants Aftermarket Top Trends
      • Mineral oils account for ~80% of the total; manufacturers dominant in specialty synthetic lubricants to invest in enhancing awareness of benefits
    • Lubricants Market: Top trends
      • World's 3rd largest market; automotive segment owns 56% of total lubricants market; PV dominate; regular new brand entry intensifies competition
    • Indian Automotive Lubricants IAM
      • 2W engine oil to lead market in FY2022 with ~745 ML*; PC engine oil estimated at 186 Million Liters
    • Indian AL IAM- Demand Forecast FY2018/FY2022:
      • The severely price sensitive tractor segment presents the second largest potential for engine oil and the largest potential for gear and transmission oils
    • Indian Automotive Lubricants Market - Potential by Regions
      • North and west zones represent high potential regions across all vehicle segments; NCR, Maharashtra and Gujarat to be key target states
  • Current Industry Trends
    • Competitive Landscape
      • PSUs have exclusive POS* in their fuel stations, but Castrol accounts for 1/5th of the bazaar trade for automotive lubricants, showcasing its brand strength
    • Indian Automotive Lubricants Aftermarket: Mineral vs. Synthetic
      • Lubricant suppliers to leverage upon the awareness of passenger car owners to push the sale of synthetic lubricants
    • Choice of Lubricants - Top 5 Purchase Parameters
      • Brand, price and quality top the key parameters of a mechanic's choice for a lubricant; Lubricant suppliers to focus on these pillars for success in the market
      • Truck and tractor owners are likely to consider bigger pack sizes to ensure that they get the most for the money paid
    • Key Brands by Segment
      • Not only are these established brands dominant in each vehicle segment, there are also other brands in each segment offering cheaper products
    • General Business Practices - Distributors
      • With marketing being a critical success factor in the crowded lubricant market, distributors expect support to conduct regular marketing activities
    • General Business Practices - Retailers
      • Product kiosks could prove to be critical sales tools at retail points considering the race for shelf space
      • While it is common for retailers to discount products in order to secure a sale, brands like Castrol, Motul and Gulf are more likely than others to sell at MRP
      • Pouches are an effective alternate to cans; however, are attractive largely to customers in the CV and tractor segments
    • General Business Practices - Mechanics
      • Mechanics can be easily influenced by retailers owing to generally low awareness levels of the significance of viscosity specifications
      • Incentivizing mechanics directly, without retailer involvement & workshop branding are effective tools to encourage them to recommend a particular brand
  • Appendix
    • Glossary
  • Annexure: Our Services
    • Maximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities
    • Our Growth Consulting Canvas

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