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India Synthetic Automotive Engine Oil Market

India Market Study on Synthetic Automotive Engine Oil: Sales of Group IV Base Oil to Increase Significantly Going Forward

India Synthetic Automotive Engine Oil Market

India Synthetic Automotive Engine Oil Market Outlook (2023 to 2033)

The India synthetic automotive engine oil market stands at US$ 678.5 Mn in 2023 and is projected to expand at 4.3% CAGR to reach a size of US$ 1035.9 Mn by the end of 2033.

In the automotive sector, high-performance synthetic engine oil has become essential. The disadvantages of conventional engine oil can be overcome by high-performance synthetic engine oil, which offers further benefits like long service life, high energy efficiency, and long-term cost-effectiveness. High-performance synthetic engine oil has become important due to its versatility, which has found many applications in modern and advanced engines such as gas-powered, gasoline-powered, hybrid, and others.

One of the key drivers for market growth is the increasing demand for passenger cars across the world. The passenger car segment is expected to expand at a CAGR of 4.5% through 2033. The key reason behind this is the increase in the disposable income of the Indian middle-class population.

Synthetic engine oil has a higher viscosity index. Therefore, the viscosity of high-performance synthetic engine oil remains stable over a wide range of temperatures. It neither becomes thick nor thin at extreme temperatures. Synthetic engine oils offer a higher level of purity compared to conventional mineral oils, which makes them an ideal choice for vehicles. These oils can protect against wear and tear.

Attribute Details

India Synthetic Automotive Engine Oil Market Size (2022A)

US$ 653.4 Mn

Estimated Market Value (2023E)

US$ 678.5 Mn

Projected Market Value (2033F)

US$ 1035.9 Mn

Value CAGR (2023 to 2033)

4.3%

Market Share of Top 5 Manufacturers (2022)

55% to 65%

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Sales Analysis of Synthetic Automotive Engine Oil in India (2018 to 2022) vs. Market Projections (2023 to 2033)

From 2018 to 2022, the Indian market expanded at a CAGR of 1.8%. Variable growth rates were observed in the market during this period across India. The well-established automobile industry has made North India and West India important markets. The COVID-19 pandemic, which started in 2019 and lasted until 2022, significantly impacted various industries, including the vehicle lubricants market. Global supply chains were disrupted, leading to instability and shifts in demand trends for vehicle lubricants.

Due to India's rapidly expanding automotive industry, which comprises passenger vehicles, two-wheelers, racing vehicles, marine, LCVs, and HCVs, the market is predicted to offer strong investment prospects over the projection period. Demand for engine oil is foreseen to increase as auto sales rise in India.

India is one of the biggest marketplaces for automobiles in the world, and it is anticipated that both car production and sales will increase. While synthetic oil is becoming increasingly important for vehicle maintenance, there will be an increase in the demand for synthetic car engine oil. These factors will lead to an increased demand for synthetic engine oil in India.

Sales of synthetic automotive engine oil are predicted to increase at 4.3% CAGR between 2023 and 2033 in India.

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What’s Pushing the Demand for Synthetic Automotive Engine Oil in India?

“Increased Vehicle Production Leading to Higher Usage of Synthetic Automotive Engine Oil”

The automotive industry is the Indian economy's backbone. The Indian automotive industry is experiencing growth due to increasing disposable income among the middle class and strong demand from the young population.

  • According to India Brand Equity Foundation (IBEF), 1,557,238 passenger vehicles, three-wheelers, two-wheelers, and quadricycles were produced overall in December 2022 in India. The Indian automobile sector is a significant employer, contributing to 35% of the manufacturing GDP.

India holds a strong position in the global heavy commercial vehicles market as it is the largest producer of tractors. India is a prominent exporter and manufacturer and seek promising growth opportunities in the near future. To cater to this growing demand, key players in the market are investing in different segments.

The automotive industry in India bagged substantial foreign direct investments between 2000 and 2022. Robust growth and expansion of the industry are expected to boost the sales of engine oil as well.

“Growing Awareness of Engine Performance and Importance of Suitable Engine Oil for Modern High-Performance Engines”

Engine oil is indispensable to the operation of any engine. Insufficient or improper engine oil adversely affects an engine's performance, potentially causing damage and rendering it non-functional. Today's automobile engines are compact, operate at higher RPMs, and demand efficient, suitable engine oil for seamless operation. Synthetic automotive engine oil provides several benefits over conventional oil, including a high viscosity index, excellent temperature stability, and improved overall performance.

Synthetic engine oils offer valuable properties and qualities that are particularly advantageous for modern engines operating at high temperatures and RPMs. They are essential for ensuring the smooth functioning of automotive engines. As vehicle owners prioritize maintaining engine performance, there is a growing preference for high-performance engine oils.

Demand for synthetic engine oil is expected to grow significantly in the coming years. The increasing awareness about vehicle performance, the importance of using suitable engine oil, and the significance of regular repair and maintenance are all contributing factors driving market expansion.

“Emphasis on Environment Sustainability and Fuel Efficiency”

Manufacturers in the synthetic automotive engine oil industry have promising growth prospects. The focus on enhancing fuel economy is evident and expected to strengthen further due to heightened concerns about environmental sustainability and stricter fuel efficiency regulations. Synthetic engine oil plays a crucial role in achieving this goal by reducing friction, thereby enhancing overall vehicle performance and engine efficiency.

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What are the Hindrances Faced by Automotive Engine Oil Manufacturers?

“Reduced Friction in Electric Vehicles and Increasing E-Mobility Initiatives”

With the adoption of the FAME India program and its goal of transitioning towards e-mobility in response to international policy commitments and environmental issues, the EV industry in India has accelerated significantly. Growth of the EV market is anticipated to disrupt the market as electric vehicles generate very little friction. The increasing popularity of EVs is expected to reduce the demand for synthetic automotive engine oil.

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Region-wise Insights

What is the Sales Projection for Synthetic Automotive Engine Oil in Western India?

“Significant Expansion of Vehicle Sector”

The market in West India is forecasted to increase at a CAGR of 4.8% through 2033.

West India is predicted to maintain a prominent position in the market for synthetic engine oil. This is due to the presence of well-known domestic players. As the vehicle sector continues to rise, the market in West India is expected to exhibit steady growth.

What is the Growth Outlook for the Market in North India?

“Government Initiatives Supporting Automobile Production”

North India plays a significant role in India's GDP, contributing 26% to the overall economy. This region boasts crucial sectors like automobiles, hydropower, and infrastructure, which are driving business opportunities and attracting foreign investments. North India is home to one of the country's largest auto clusters.

With the government's continued efforts to improve the business environment in the automobile industry, the synthetic automotive engine oil market is expected to witness further growth in the future.

Category-wise Insights

Why is Full Synthetic Engine Oil in High Demand in India?

“Improved Performance, Extended Oil Change Intervals, and Cost-Effectiveness of Full Synthetic Engine Oils Fueling Their Demand”

Full synthetic engine oil undergoes a highly intricate manufacturing process and is primarily derived from petrochemicals. As a chemical product, it stands apart from mineral oils, which are obtained from crude oil through refining. Mineral oil contains reactive entities like oxygen, sulfur, phosphorous, and nitrogen, which can contribute to oil oxidation and degrade engine oil. In contrast, synthetic engine oil overcomes these drawbacks, offering better engine life and improved performance.

The oxidation stability of full synthetic engine oil enhances engine performance by providing stability at both extremely high and low temperatures. Its high viscosity index allows it to operate effectively across a wide temperature range, with minimal viscosity fluctuations. Full synthetic oil creates an additional protective film over the engine, reducing wear and tear. Moreover, its high flash points make it well-suited for high-temperature applications. These qualities contribute to the superior performance and reliability of full synthetic engine oil.

The high traction coefficient of full synthetic oil translates into reduced power to move the load. The low maintenance cost of full synthetic oil, thanks to its extended oil change intervals, makes it a cost-effective option in the long run. This advantage has significantly contributed to the growing demand for full synthetic engine oil in the market.

What are the Factors Propelling the Usage of Group IV Base Oil?

“Group IV Base Oil’s Resistance to Oxidation Driving Widespread Use in Automotive Industry”

Group IV base oil, known as polyalphaolefin (PAO), is a synthetic base oil type that falls under the classification system developed by the American Petroleum Institute (API). Group IV base oil has excellent thermal stability. PAOs can survive extreme temperatures without breaking down.

PAOs demonstrate excellent oxidation resistance when used in well-formulated products with appropriate antioxidants. These versatile compounds find applications in various lubricants, including full synthetic engine oil, semi-synthetic engine oil, gear oils, hydraulic fluids, and greases, making them widely used in the automotive industry and beyond.

Competitive Landscape

The Indian synthetic automotive engine oil market is dominated by key players who hold 55% to 65% of the market share. Competitiveness in the market is high driven by the participation of many small- and medium-sized businesses amidst the dominance of well-established players at the state and national levels.

Key market players are focusing on growing their consumer base to increase their sales. Smaller companies, meanwhile, are emphasizing cost-effective solutions and value-for-money services to strengthen their market position.

India Synthetic Automotive Engine Oil Industry Report Scope

Attribute Details

Base Year for Estimation

2022

Historical Data

2018 to 2022

Forecast Period

2023 to 2033

Quantitative Units

  • US$ Th for Value
  • Tons for Volume
  • CAGR from 2023 to 2033

Report Coverage

  • Revenue Forecast
  • Volume Forecast
  • Company Ranking
  • Competitive Landscape
  • Growth Factors
  • Trends
  • Pricing Analysis

Key Market Segments Covered

  • Vehicle Type
  • Product Type
  • Base Oil Type
  • Region

Regions Covered

  • North India
  • South India
  • East India
  • West India

 

Key Companies Profiled

  • Indian Oil Corporation Limited
  • HPCL
  • BPCL
  • Castrol Ltd.
  • Savita Oil
  • Shell PLC
  • Valvoline Inc.
  • Amsoil Inc.
  • Gulf Oil International
  • Motul
  • ExxonMobil Corporation
  • BP PLC
  • Phillips 66 Company

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Segmentation of India Synthetic Automotive Engine Oil Industry Research

By Vehicle Type:

  • Passenger Cars
  • LCVs
  • HCVs
  • Two Wheelers
  • Racing Vehicles
  • Marine

By Product Type:

  • Full Synthetic Engine Oil
  • Synthetic Blend Engine Oil
  • High Mileage Synthetic Engine Oil
  • Racing Synthetic Engine Oil
  • Others

By Base Oil Type:

  • Group III Base Oil
  • Group IV Base Oil
  • Group V Base Oil

By Region:

  • North India
  • South India
  • East India
  • West India

- Companies Covered in This Report -

  • Amsoil Inc.
  • Savita Oil
  • BP plc
  • Castrol Limited
  • Chevron Corporation
  • ConocoPhillips Company
  • Exxon Mobil Corporation
  • Fuchs Petrolub SE
  • Gulf Oil International
  • Idemitsu Kosan Co., Ltd.
  • Kendall Motor Oil
  • Lucas Oil Products, Inc.
  • Mag 1 Lubricants
  • Motul S.A.
  • Nulon Products Australia Pty Ltd
  • Pennzoil-Quaker State Company
  • Petro-Canada Lubricants Inc.
  • Phillips 66 Company
  • Prolong Super Lubricants
  • Quaker State Corporation
  • Ravenol GmbH
  • Red Line Synthetic Oil Corporation
  • Repsol S.A.
  • Royal Purple LLC
  • Schaeffer Manufacturing Co.
  • Shell International B.V.
  • STP Products
  • Sunoco LP
  • TotalEnergies SE
  • Valvoline Inc.
  • WOLF Lubricants
  • ZIC Lubricants
  • ACDelco
  • Champion Brands, LLC
  • Croda International Plc
  • ENEOS Corporation

- Frequently Asked Questions -

The India synthetic automotive engine oil market is predicted to expand at 4.3% CAGR through 2033.

The synthetic automotive engine oil market in India is expected to reach US$ 1,035,877.3 Th by 2033-end.

Passenger vehicles hold a dominant share of the market for synthetic automotive engine oil in India.

Increased vehicle production and growing need for enhanced engine performance are key trends responsible for market growth.

HPCL, BPCL, Castrol, Savita Oil, Shell, and Valvoline are leading manufacturers of synthetic automotive engine oil in India.

West India accounts for significant demand for synthetic automotive engine oil in India.

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