Global market research and management consulting firm, Kline, recently published its ‘Opportunities in Lubricants: China Market Analysis’ report, which states that total consumption of lubricants in China is estimated at 7000 kilotonnes, valued at an estimated US$26 billion in 2015.
According to Kline, the country’s total consumption of consumer automotive lubricants in 2015 was estimated at 1400 kilotonnes and is forecast to grow 3.7% by 2020, with new passenger car sales growing 9.2% during 1H16. This includes factory-fill for all product categories and greases.
Engine oil is the leading product in the consumer segment, accounting for over 1200 kilotonnes, or 90% of the total volume and total value. Gear oil is second with 4% of the volume, followed by ATF and grease. Shell was the largest supplier in 2015, with 14% of the market by volume. Sinopec ranked second.
In the engine oil category, the most popular viscosity grade is 10W-30 and 10W-40, typically with the SJ, SL, and SM API service levels. This viscosity grade 10W accounts for apprximately 45% of the total volume of engine oil consumed by the consumer automotive market segment. The most popular type of gear oil is viscosity grade 80W-90, and the typical service level is GL-5. The major ATF type in the Chinese consumer automotive market is Dexron III. The major grease product type is lithium complex base grease used as factory-fills.
The installed subsegment was the leading outlet for consumer automotive lubricants in 2015. An estimated 93% of the total volume was sold through this sector valued at US$10.5 billion in consumer sales.
David Tsui, a Project Manager in Kline’s Energy Practice, said: “The distribution channels for consumer automotive lubricants are split among direct, OEM, and distributor, in terms of the purchase channel of different sub-segments. Around half of the volume are sold to garages via distributors. Direct sales are mainly to the OEMs for factory-fill. The authorised repair garages mainly purchase from OEMs.
“Although the consumer segment appears to be the best performing segment, there are opportunities for growth in the industrial and commercial segments as well. Companies will need to adapt to the governmental regulations and societal norms to prosper in this modernising Chinese market.”
Read the article online at: https://www.hydrocarbonengineering.com/refining/24012017/chinese-finished-lubricants-market-report/