Expenditure on automotive lubricant and vehicle servicing is a part of 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 (2014-2020) of ~12% by revenue in MYR and ~3% by sales volume in Litres. The growth in the industry is driven by presence of more than ~32 million vehicles on road and rising per capita income in the country.
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 labour, coupled with its pro-business climate and improving infrastructure led to increase in FDI by automotive OEM. In 2020, more than ~500K vehicles including passenger cars, commercial vehicles and 2W were produced in Malaysia. Proton, Peroduo, Nissan and BMW are the major OEMs in the country. The industry is import driven due to lack of availability of raw materials in Malaysia and only a limited player has their blending plants in the country.
How Is the Market Segmented?
By Grade: Semi Synthetic is the most commonly used lubricant grade primarily due to its high performance and lower costing as compared to the synthetic lubricants. Mineral oils have the lowest drain intervals amongst all the grades of the lubricants.
By Type: In a year, a passenger car, motorcycle and trucks require 8-12L, 3-4L and 18-36L of engine oil. Other lubricants required include Gear and transmission oil, Hydraulic oil, grease and others. Passenger car engine oil accounted for maximum market share due to presence of higher number of passenger cars on road as of 2020.
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By End Users: In Malaysia Passenger Vehicles are the biggest end users followed by commercial vehicles. The average lubricant consumption of commercial vehicles is much higher than that of a passenger car and motorcycle because of difference in size and distance travelled.
By Sales Channel: Direct sales by companies constitute sales from fuel stations and sales to OEMs. Majority of sales are undertaken through indirect distributor network. Through distributor network 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 increasing official presence of lubricant manufacturers on e-commerce platforms it is expected to gain traction in the future.
By Viscosity Grade: The viscosity grade of a motor oil provides information on the oil’s resistance to flow in your vehicle’s engine. A lubricant with a low viscosity grade will be more fluid, more liquid, and will flow more easily. Inversely, the higher the grade, the thicker the oil, making its flow slower, which allows the formation of a protective film on engine parts.
Competitive Landscape
The competition in the industry is concentrated with presence of 15-30 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 continuously trying to evolve their product offering in order to cater to the evolving demand. Manufacturers are venturing into production of E-fluids (lubricants for EVs) to cater to increasing numbers of electric vehicles. Players such as Petronas and Shell have recently launched online sales on Lazada and Shopee Mall.
Malaysia Automotive Lubricants Future Outlook and Projections
The industry faced a downfall in 2020 due to economic slowdown created by coronavirus pandemic. In the next 2-3 years the sales volume for automotive lubricants in Malaysia are expected to grow back to pre-covid numbers.
The demand of synthetic lubricants along with other expensive high-performance E-lubricants is expected to drastically increase which will enable growth in the future. New product launches have assumed more importance than ever for growth of the passenger vehicles in Malaysia. New vehicle models offering smart connectivity features such as remote vehicle access through smartphone apps will get higher customer interest and will induce the growth for the automotive lubricants in the near future.
Key Segments Covered in the Report
- Market Size of Malaysia Automotive Lubricants in terms of Sales Volume in Mn L, 2020
- Market Size of Malaysia Automotive Lubricants in terms of Sales Revenue in MYR, 2020
- Market Segmentation of Malaysia Automotive Lubricants in terms of Sales Volume in Mn L, 2020
- 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
- Gear oil and Transmission Oil
- Hydraulic Oil
- Grease and others
- By Sales Channel
- OEMs
- Fuel Stations
- OEM Workshops and Spare Part Shops
- Service Stations and Garages
- Online
- Hypermarket/Supermarket
- By Viscosity Grade
- 0W-20
- 5W-40
- 10W-40
- 15W-40
- 15W-50
- Others
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:-
- Automotive Lubricants Market Size on the Basis of Sales Volume and Revenue
- Automotive Lubricants Market Segmentation – By type of Lubricant, By Grade of Lubricant, By Viscosity, By End Users
- Target Addressable Audience – Passenger And Commercial Vehicles, Regional Analysis, Used Car Sales
- Supply Ecosystem and Competition Parameters
- Value chain analysis in the Automotive Lubricants Market in Malaysia
- Demand Scenario
- Trends and Developments in Automotive Industry in Malaysia
- Growth Drivers for Automotive Industry in Malaysia
- Marketing Strategies
- Challenges Faced by Lubricant Producers
- Porter Five Force Analysis
- Emerging Business Strategies
- Best Practises in Business
- Pricing Analysis
- Customer Buying Decision Parameters
- Cross Comparison Between Major Players in The Industry
- Impact of Covid-19 on the Automotive Lubricants Industry in Malaysia
- Future Projections and Market Size for Malaysia Automotive Lubricants Industry
Time Period in the Report
- Historical Period: 2014-2020
- Forecast Period: 2021F-2025F
Companies Covered:
- Shell
- Petronas
- Total
- Chevron
- Castrol
- Hyrax
- Mobil
- Others
For More Information on the research report, refer to below link: -
Malaysia Automotive Lubricant Market Research Report
Related Reports by Ken Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
