Performance of four-wheeler industry in India and the future
The automotive industry in India has come a long way from its birth in the 1950s. With an initial few manufacturers dominating the market share, to now having multiple Indian brands as well as International players producing and selling commercial and passenger vehicles within the country. India has not only shown a steady growth but constantly provides technological advances in the automotive lubricant industries with an ever-growing market for the automotive industry thus showing essential economic potential.
Performance in the automotive market
In the year 2020-21 India was amongst the top five contributors to the automotive market with a combined unit (commercial and sales of over 3.5 million units). It was the seventh-largest commercial vehicles manufacturer in 2019. The Indian Automotive Lubricants Market was valued at INR 404.45 Billion* in FY2020 and is projected to reach an estimated INR 527.78 Billion by FY2027.
Impact of covid
The automotive industry suffered a heavy setback by COVID-19 from early 2020 to mid-2021. The declining automotive industry along with the temporary shutdown of automotive manufacturing units and multiple industrial activities due to the ongoing pandemic has led to the decline in the consumption of engine oil, thus creating a negative footprint on the demand of the engine oil market. According to OICA, automobile sales have declined by around 13.77% in 2020. Employment also takes a hard hit when vehicle sales decline since the automotive industry produces 37 million direct and indirect jobs while stimulating job creation in other industries. However, we at Divyol by Gandhar Oil are working towards introducing premium, value-added and competitive products to keep up with the dynamic market demands.
Engine Oil Market
India is the third largest Lubricant consumer in the world. The Automobile industry has had a steady dominance in the market owing to the increasing production of vehicles in India. Hence, products like Engine oils and lubricants dominated the market in 2018.
The ever-growing automobile industry and industrial growth in the country have also projected growth in the demand for engine oils and fluids, during the forecast 2019-24.
*Asia-Pacific is considered the largest consumer of lubricants of which India shares a market value of about 17% owing to the 2.4 MMT ( Million Metric Tonnes ) of annual consumption. *source: petroleum(dot)nic
The automotive industry in India is moving into 2022 with a positive outlook in its hope of reaching pre pandemic sales by volume. With demand seeming uncertain in the passenger vehicle segment, many manufacturers are embracing new technologies and establishing a mark on the electric vehicles market, with launches in both the two and four-wheeler industries. The rising commodity prices have also put added pressure on the industry causing a steady rise in vehicle pricing across all segments.
With the start of 2022, the Indian automotive industry along with the government policies have taken steps in a positive and lucrative direction. With the increase in the number of new manufacturers in the market along with the existing players launching newer vehicles every year, the demand for engine oil and lubricants seems to be on an imminent rise.