How Is the Automotive Lubricant Industry Positioned in Malaysia?
Expenditure on automotive lubricant and vehicle servicing is a part of the necessary household expenditure for a vehicle owner. Lubricants control friction and wear in the engine, protect the engine from rusting, cool the pistons, and protect the engine oil stored in the sump from combustion gases.
The automotive lubricant industry in Malaysia is at its Growth Stage, increasing with a CAGR (2014-2019) of 18.2% and 9.6% by revenue and sales volume respectively. The growth in the industry is driven by the presence of more than ~31 million vehicles on road and growing per capita income in the country. The formation of ASEAN free trade policy in 2015, led to the emergence of MNCs in Malaysia. The stability of ASEAN’s economy, availability of skilled labor, coupled with its pro-business climate, and improving infrastructure led to an increase in FDI by automotive OEM. In 2019, ~ vehicles including passenger cars, CV and motorcycle & scooters were produced in Malaysia. Proton, Peroduo, Nissan, and BMW are the major OEMs in the country. The industry is import driven and only ~30% of the total lubricants consumed were produced in Malaysia in 2019. Even though major players such as Castrol, Shell, and Petronas have a blending plant in Malaysia, they still have to import some specialized lubricants from different countries in Asia.
How Is Market Segmented?
By Grade: Mineral Oil is the most commonly used lubricant grade primarily due to its low retail price as compared to synthetic and semi-synthetic variants which are costlier as they come with high additives and highly refined base oil quality. Synthetic and semi-synthetic lubricants are gaining traction in the industry due to its better performance.
By Type: In a year, a passenger car, motorcycle, and trucks require 8-12L, 3-4L, and 18-36L of engine oil. Other lubricants such as Gear oil, Hydraulic oil, grease, and transmission fluids are changed after 50,000-60,000 km, +80,000 km, 150,000 km, and 130,000 km respectively. Passenger car engine oil accounted for maximum market share due to the presence of more than ~10 million passenger cars on road as of 2019.
By End Users: In Malaysia Passenger Vehicles are the biggest end-users followed by commercial vehicles, motorcycles, and marine. ~48% of the total vehicles on road in 2019 were passenger vehicle and the remaining 46% and 6% were motorcycles and commercial vehicles respectively. The average lubricant consumption of commercial vehicles is much higher than that of a motorcycle because of the difference in size and distance traveled.
By Sales Channel: Direct sales by companies constitute sales from fuel stations and sales to OEMs. The majority of sales are undertaken through indirect distributors network. Through distributors, the lubricants are majorly sold through service stations, garages, and OEM workshops as vehicle owners primarily depend on their mechanics for selecting and changing lubricants. Online sales contribute a very small share but with the increasing official presence of lubricant manufacturers on e-commerce platforms it is expected to gain traction in the future.
Competitive Landscape
The competition in the industry is concentrated on the presence of 15-25 lubricant manufacturers. The industry is dominated by multinational oil producers such as Shell, Castrol & Chevron, and the national government-owned Petronas. Manufacturers are competing on the basis of product portfolio, prices, distribution network, brand value, and presence in different motorsports. Manufacturers are continually trying to evolve their product offerings in order to cater to the evolving demand. Manufacturers are venturing into the production of E-fluids to cater to increasing numbers of electric vehicles. Players such as Petronas and Shell have recently launched online sales on Lazada and Shopee Mall.
What Is The Future Of Malaysia Automotive Lubricant Industry?
The industry will face a downfall in 2020 due to the economic slowdown created by coronavirus pandemic. Car sales are expected to fall and vehicles currently on road are expected to travel smaller distances due to the implementation of work from home strategy across the country and due to the drastic fall in the tourism industry. The industry is expected to recover by 2024. The demand for synthetic lubricants along with other expensive high-performance E-lubricants are expected to drastically increase which will enable growth in the future. By 2025, the industry is expected to value more than MYR ~18 billion.
Key Segments Covered: -
By End User Industry
Passenger Vehicle
Commercial Vehicle
Motorcycles
Marine
By Grade
Synthetic
Semi-Synthetic
Mineral
By Type
Passenger Car Engine Oil
Heavy Duty Engine Oil
Motorcycle Oil
Grease
Gear oil and Transmission Oil
Hydraulic Oil
By Sales Channel
OEMs
Fuel Stations
OEM Workshops and Spare Part Shops
Service Stations and Garages
Online
Hypermarket/Supermarket
Companies Covered:
Shell
Castrol
Petronas
Total
Caltex Chevron
Exxon Mobil
Key Target Audience
Lubricant Manufacturing Companies
Oil Producers
Lubricant Distributors
Government Associations
Time Period Captured in the Report: -
Historical Period: 2014–2019
Forecast Period: 2020-2025
Key Topics Covered in the Report: -
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Demand Scenario
Marketing Strategies
Challenges Faced by Lubricant Producers
Porter Five Force Analysis
Emerging Business Strategies
Best Practises in Business
Pricing Analysis
For More Information on the Research Report, refer to below links: -
Related Reports by Ken Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-901537824
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-901537824
