25 February 2011 18:43 [Source: ICIS news]
LONDON (ICIS)--Lubricants demand in India, which is expected to overtake China as the world’s fastest growing major economy, could expand by more than 19% from 2009 to 2.23m tonnes in five years, said an industry expert on Friday.
Industrial lubricants are likely to be the fastest growing segment, followed by the consumer and commercial sectors, said Kline & Co’s Geeta Agashe.
Agashe spoke at the 15th ICIS World Base Oils & Lubricants Conference in ?xml:namespace>
Industrial oils and fluids, which accounted for slightly over half of India’s total lubricants demand in 2009, was projected to grow at 4.5% per year to 1.18m tonnes in 2014, according to Agashe. The country’s total lubricants consumption was at an estimated 1.86m tonnes in 2009.
A sizeable portion of the growth in industrial lubricants demand would come from the power generation plants, as well as the automotive and auto-component industries, she added.
Consumer lubricants consumption, driven mainly by rising car and motorcycle population, could expand to 214,000 tonnes by 2014, based on a projected annual growth rate of 3.3% per year, Agashe said.
The market is also expected to shift towards better quality and lighter viscosity engine oils, partly because of higher emission standards and stricter requirements by the original equipment manufacturers (OEM).
By 2014, 5W and 0W lower viscosity engine oils are expected to make up around 10% of the market in
Growth in the commercial automotive lubricants sector, which includes heavy duty engine oil for buses and trucks, as well as lubricants for agricultural equipment such as tractors, is expected to increase at a yearly rate of 2.6% to 834,000 tonnes in 2014, she said.
The ICIS World Base Oils and Lubricants Conference began on Thursday and runs through Friday.
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