Press Release Description
Automotive Lubricants Market to Grow in East Africa Due to Rapid Expansion of Automotive Fleet
The East Africa Automotive Lubricants market is projected to grow at a CAGR of around 4.87% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. With the growing sales of new automobiles in East African countries such as Kenya, Uganda, Tanzania, etc., the demand for this lubricant products have notably increased. With the shift in the purchase pattern as well as the rise in the disposable income of the customers, the automotive sector has witnessed a surge in terms of demand for motor vehicles. Additionally, the governments in the respective countries of the region have also focused on improving the infrastructure to promote long-distance travel by road, which would decrease the cost of transportation through commercial vehicles.
East African countries are also a sizeable market for the pre-owned/second-hand cars being imported from the Middle East, Asia-Pacific, and European countries. These cars, due to strict emission norms in the originating countries often end up getting exported to African countries due to economical pricing as well as less stringent environmental regulations. With the higher influx of second-hand vehicles in the East Africa region, vehicle ownership has significantly gone up. Subsequently, promoting the demand for automotive lubricants for operational maintenance.
Hence, accounting for the growing fleet, enhanced disposable income, the influx of second-hand cars, etc., it is expected that the industry in the region would experience a notable surge in the forecast years., further states the research report, “East Africa Automotive Lubricants Market Analysis, 2023.”
Commercial & Passenger Cars to Hold Considerable Share of the Market
Based on the Vehicle Type, the market is further bifurcated into, Two-wheeler, Passenger Cars, and Commercial Vehicles. Among all, both Commercial Vehicles & Passenger Cars accounted for the majority of the market share. Commercial vehicles, due to longer running distances require more refill & recheck of lubricants and other transmission fluids than passenger vehicles. The higher frequency of engine oil, brake oil, and other lubricant change in commercial vehicles has led to the category grabbing a significant market share in the market in the East Africa region.
Additionally, Passenger Cars have earmarked growth in the region with the increased ownership among customers with the new & second-hand car availability. Due to higher displacement & extreme climatic conditions in the tropical region, with high temperatures & humidity, the usage of automotive lubricants in these cars has been on the higher side. In line with the growing demand, several car brands are launching their economy range cars in the region to attract customers. For instance:
- In 2021, Tata Motors, with an aim to expand into Tanzania, launched its new car brand. The company, along with its sole authorized distributor in Tanzania, Tata Africa Holdings Limited, introduced the Tata Nexon model.
In line with the expansion of the automotive industry, as well as improving vehicle ownership among customers, it is presumed that the demand for automotive lubricants would hold a strong position in the commercial & passenger car segments during the forthcoming period.
Kenya & Uganda to Hold a Sizeable Position
Geographically, Kenya & Uganda are expected to lead the market in the forecast years. Kenya & Uganda have a higher share in the region in terms of GDP & disposable income, owing to which the countries have emerged as hotspots for the growth of automobiles & automotive lubricants. Kenya has a domestic vehicle manufacturing capability, which has assisted the expansion of the automotive industry. According to the Associated Vehicle Assembly (ASA) Kenya, the vehicle manufacturing capability is currently running at 6,000 per year, which can expand up to 30,000 with the upcoming accumulation in domestic or export demands.
The expansion of the new automotive fleets & rapid growth in commercial activity leading to enhancing the commercial vehicle fleet would be crucial factors for the enhancement of the respective countries' automotive lubricant products.
Competitive Landscape
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Total Energies- Kenya, Shell- Kenya, Kenol Kobil, Vevo Energy, Rubis Energy Uganda, Puma Energy Tanzania, Oryx Energies, Yetebaberut Beherawi Petroleum (YBP), East Africa Gasoil Ltd., Africa Fuel & Lubricants Ltd) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report
- What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
- What are the trends influencing the current scenario of the market?
- What key factors would propel and impede the industry across the region?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition been shaping across various countries?
- How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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