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Automotive Product Finder Magazine | If vehicles sales continue to decline, it may impact retail market
If vehicles sales continue to decline, it may impact retail market
Switch to BS VI is a turning point for Indian automotive industry
Auto components: Investments are inevitable
With new vehicles sales declining in last few months, lubricant industry is banking on the after-market segment as millions of existing vehicles continue to run and require the lubricants. In this interview with Rakesh Rao, Hari Prakash M, CEO, GP Petroleums Ltd, analyses the impact of factors like upcoming BS VI emission norms and slowing auto sales on lubricants industry.
How is your company helping auto industry in its preparation to adopt BS VI emission norms?
Automobile manufacturers are surely under pressure to progress under defined timelines and produce BS VI compliant vehicles. It would be a significant technological jump especially in diesel filter technology & in optimisation of selective catalytic reduction (SCR) technology.
We as a company are in the process of gearing up for the BS VI era, and we have an early mover advantage on the back of the diesel exhaust fluid additive, that we launched known as ‘Clear Blue’.
In addition, we have launched the first Repsol Turbo Plus 15-40 CI 4 Plus Diesel Engine Oil recommended for existing modern engines. Also, we are launching 15W40 CK4 oils to cater to Bharat VI norms for all new vehicles. Repsol Lubricants with its base oil suppliers & additive partners are working extensively to formulate lubricant oil for passenger cars and commercial trucks, suitable for any modern engines (including those above 2000 cc) meeting BS VI standards.
Demand for diesel vehicles is on a decline, while auto sales has been witnessing continuous slide in the last few months. How are these events affecting the lubricants market? Although the demand of the diesel vehicles is declining in passenger car segments, but other segments are not that much impacted. While the new vehicles sales are declining in last few months, the after-market segment will be less affected in the short time because of existing vehicles on road, which will continue to run and require the lubricants. OEM shares are impacted with the sales decline and will continue. If the vehicles sales continue to decline for next few months, this may impact in mid longer term in retail market as well. However, every economic slowdown is cyclic and this situation will not be there for longer time. Government of India is also ensuring right steps to support and help automotive manufacturer and to review the situation.
Could you please throw some light on your co-branded lubricants strategy?
We have an exclusive partnership with Spanish oil major – Repsol and it is growing in India year-on-year, in terms of both product and brand visibility. The company is ready to introduce lubricants which are BS-VI compliant. Although to grow further, we will make use of all the latest technologies, along with our partnerships with OEMs. The brand will also capitalise on the visibility and recognition of the 24-year old Repsol-Honda MotoGP collaboration.
We already have various partnerships with multiple OEMs globally and we will leverage that in the Indian market. It’s in the retail market that lubricant makers fight for visibility and market share. It is important to have brand recall among mechanics in service centres.
What are the emerging trends in auto lubricants industry?
Automotive lubricants industry is clearly moving in the direction of lower viscometrics oils and emissions requirements. Engine durability and after treatment device compatibility is key in over all, process. Companies are aiming to reduce total cost of ownership from OEMs, as there is significant increase in cost because of the engine technology to meet the emission requirements and after treatment device, which is a significant cost. In view of this lower viscometric oils with lower sulphur and phosphorous oils are the requirement of the era.
REPSOL is ready with the BS VI requirements of the Indian market with new range of oils like CK4 and SN Plus meeting ILSAC C5 category. Particularly in PCMO segment API SN Plus 5W-30 and API SN plus 0W-20 and DEO segments oils meeting CK4 specifications. In MCO segments we are always leading because of the racing DNA of REPSOL, we are ready with API SN 10W-30 and 5W-30 engine oils for better fuel economy.
Vehicles Lubricant Industry
Diesel Engine Oil
Passenger Car Segments
Repsol Honda Motogp Collaboration
Viscometrics Oils And Emissions
DEO Segments Oils
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