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Number of OEM Companies & Private Brand Lubricants Continues to Rise
B - cant market stood at 447.91 million litres in 2021 and is projected to register a Compound Annual
Growth Rate (CAGR) of 3.58 per cent to reach 534.03 million litres in 2026.
- cant market was dominated by the automotive industry, which accounted for around 70 per cent of total lubricant consumption. From 2015 to 2019, lubricant consump- tion in the automotive industry increased by around 25 per cent. However, in 2020, the automotive industry ex- perienced a drop of 9.3 per cent over 2019 due to the Covid-19 impact, followed by heavy equipment of 7.4 per cent.
The Tyreman talked to several small and medium players, with one or two players who preferred not to be named, in the lubricant market to better under- stand the trend, strategies, challenges and outlook of the industry.
- Chevron, Petronas, Shell and Total, there are about
200 to 500 imported and private brands as well as lo- cal blends popping up every now and then, with some coming and going, according to those interviewed.
Since the investment and cost of starting a lubricant business is not very high compared to other indus- tries, many spare-part suppliers and even tyre dis- tributors enter the industry as they could use their existing network to sell their own brands of lubricant. Instead of importing the lubricants, most partnered companies to come out with their own house brands. With as low as 50 cartons of lubricants a month, a to take its order.
Losing market share to online players
Automotive lubricant brands like Shell, Petronas and 2017. The pandemic accelerated the move to online selling and the number of online sellers increased - ing Director, Promax Lubricant Sdn Bhd, noted that traditional marketing lost ground to digital marketing.
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