1. Increasing Automotive Demand and a Growing Number of Automotive OEMs Driving the Automotive Lubricants Industry in Malaysia
The Malaysia Automotive Lubricants Market is at its Growth Stage, increasing with a CAGR (2014-2020) of 11.7% and 2.7% by revenue and sales volume respectively. The industry experienced a drastic fall in lubricant sales due to the implementation of the national lockdown in March 2020. In 2020, a decline of -29.5% and -25.9% was witnessed in sales volume and revenues respectively due to the shutdown of service stations and restrictions on non-essential travel throughout the country. High growth potential in the industry due to a shift in preference to expensive synthetic and semi-synthetic lubricants is expected which will be supported by more intensive motor vehicle use, rising vehicle ownership and expanding OEM output.
2. Semi-Synthetic and Synthetic Dominating the Industry because of their Better Performance, Durability and Relatively Lower Price
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Semi-Synthetic formulations capture the highest market share from conventional lubricants, mainly due to performance benefits, including enhanced fuel economy and improved engine protection at lower prices than synthetic lubricants. The overall market share in 2019 was 264.5 Mn L which then witnessed a fall in 2020 due to the global pandemic capturing a market share of 186 Mn L. Compared to mineral oils, semi-synthetic oils are thinner and more durable. They are also suitable for modern engines and are often preferred as the economical alternative to fully synthetic oils for engines that cannot use mineral-based oils.
3. Automotive Lubricants Market in Malaysia is highly concentrated with the Top 3 Players having a Market Share of ~71%
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The Automotive Lubricants Market in Malaysia is highly concentrated among the Top 3 Players for Automotive Lubricants Market in Malaysia. These players include Shell, Petronas and Castrol with a market share of ~71% (Sales Volume in Million Litres) Semi Synthetic Lubricants is the key Product Segment out of the three grades of Lubricants. However, with the changing trends and demand Synthetic is gaining popularity amongst vehicle owners in Malaysia. Limited number of Players such as Shell, Petronas has a blending plant for lubricants in Malaysia. Moreover, the majority of the players import their final products from their blending plants in other countries.
4. Automotive Lubricants in Malaysia are expected to grow at a steady rate owing to changes in formulations & partnerships
Malaysia’s Automotive Lubricants Market is expected to consume 281 Mn L by 2025, projecting revenue growth of ~12% for the forecasted period 2020-25. Introduction of e-transmission fluids including e-greases, and e-thermal fluids that are indicated for use only in EVs and are used in plug-in hybrids (PHEVs), battery electric vehicles (BEVs) and fuel cell EVs (FCEVs). Moreover, rapid engine hardware changes in vehicles are forcing companies to develop high-performing formulations that efficiently deliver outstanding engine protection. The global pandemic has led consumers to migrate from in-store purchasing to online which includes the online purchase of automotive lubricants from platforms such as Shopee and Lazada.
