While the electric vehicle is the talk of the town, oil- and natural gas-reliant economies of the Gulf Cooperation Council (GCC) witness massive threats owing to the negligible dependency of the electric engine-based vehicle on oils. Belonging to a hydrocarbon-rich region refrains them from switching entirely to hybrid or electric models. 

But the question arises, how is GCC going to sustain its well-established economy predominantly breathing over the oil and natural gas plants? Likewise, questions are many. However, the answer lies simply in seeking ways to stay relevant in a decarbonizing world. And for this, the gulf countries are required to defend the oil demand while simultaneously working on creating more such requirements in the automotive industry. 

Envisioning the criticality, a few of them have already started to invest meticulously in Research and development and come up with numerous solutions that surely are going to uplift the industry for at least decades. Investing in Better- performance lubricants for Automotive markets is one such way of defending the oil industry. Such initiatives instigate the considerable growth of the GCC Automotive Lubricants Market with a CAGR of around 3.0% through 2027, cites a report published by MarkNtel Advisors recently.

What Are Automotive Lubricants, And Why Are They Crucial to Vehicles?

Automotive lubricants are fluids composed of base oils and additives meant to recede friction between surfaces and the contacts such as vehicles or roads. Considering their remarkable properties as coolant and sealant between engine piston rings and cylinder walls, they make up the perfect choice for ICE (Internal Combustible Engine). The best part, they upscale the performance and durability of the engines along with blocking excessive noise. That being said, Lamborghini is looking forward to pushing combustion engine longevity beyond 2030.

Key Trends Fostering the Automotive Lubricants Industry Through 2027

Now, let’s dive deep and unfold the initiatives or trends prevailing across the region, that possibly influence the Automotive Lubricants industry in the coming years.

• Saudi Arabia seeks to upgrade and invest in internal combustible engines (ICE), accounting for the majority of vehicles driven in the Kingdom for the next 15-20 years. Again, the recent official grant to women drivers in the region is completely an add-on for the automotive industry.
• Under the Kingdom’s vision 2030 goals, the National Industrial Development Center (NIDC) seeks to attract 3-4 Original Equipment Manufacturers across the ICE and EV value chain, to produce 300,000 vehicles annually with a 40% local content by 2030. NIDC invites ventures from foreign countries by incentivizing through loans, tax subsidies, and tariff exemptions citing International Trade Administration.
• Qatar, being the host country for FIFA World cup 2022, is all set to amplify the production of commercial vehicles in near future by meticulously investing in the creation and renovation of infrastructural facilities, including superhighways, pitches, and local road projects.
• The United Arab Emirates accounting for a substantial volume of Passenger cars across the middle east follows in the footsteps of Saudi Arabia and is the second-largest automotive market in the GCC. With its initiatives, such as Dubai Plan 2021 and Abu Dhabi Vision 2030, the government set forth the stage for industrial behemoths across the region.

Market Players Take On the Above Trends

• ExxonMobil recently launched the Mobil Super range of lubricants claiming it to be of advanced technology that meets the current BS-VI specifications, & fuel efficiency. This next-generation synthetic passenger vehicle lubricant offers upgraded engine wear protection.
• Chevron Lubricants announced its Delo TorqForce Syn FD-1 high-performance, fully synthetic lubricant developed for final drives and axles of extensive mining haul trucks and other support equipment, formulated to deliver maximum system protection and enhance efficiency over conventional SAE 60 TO-4 and FD-1 products.
• Castrol introduced Magnatec Stop-Start, an engine oil aimed to protect against ‘stop-start’ driving situations prevalent in the Middle East
• FUCHS Group acquired Nye Lubricants Inc. which deals in the manufacturing, formulation, and innovation of synthetic products. The acquisition aimed to expand the synthetic lubricants portfolio.

Why Is Synthetic Lubricant Gaining Popularity, Among Other Variants?

Over the years, Mineral oil has posed higher demand due to greater affordability. However, Synthetic lubricants have gained popularity among consumers for the last few years. Here, synthetic oils are nothing but the chemical modification of oil components. These oils are produced in certain regulated physical conditions, required to create uniform particle size and targeted performance properties. 

Such ubiquitous properties project them as a real trouble-shooter. Talking about its amazing benefits, these have the potential to sustain in extreme temperatures. Also, they make the best choice when considering longer service intervals. The best part, these automotive lubricants cater to the emerging need for service intervals, improved fuel efficiency, and extended oil drain & protection period. Besides, they are known for their reduced carbon emissions.

Final Words

With the majority of transportation still powered by internal combustion engines(ICE) across the region, consumers are keen to invest in more fuel-efficient engines offering better performance and reducing carbon footprints. And hence, the government in concerted efforts with companies is all set to invest in Investments in refineries, petrochemical facilities, and especially improved internal combustion, which automatically instigates the GCC Automotive Industry in the coming years.