India Lubricating Oil Additives Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: India Lubricating Oil Additives Market (2025-30):

The India Lubricating Oil Additives Market size is valued at around USD 1,389 million in 2025 and is expected to reach USD 1,827 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 5.63% during the forecast period, i.e., 2025-30. The market growth is driven by the expansion of industrial sectors and the increasing population in the country. This is steadily increasing the ownership and replacement of vehicles, thereby increasing the demand for lubricating oil additives, which help in reducing temperatures and maintaining the longevity of moving parts.

Moreover, the high industrialization and infrastructure activities such as construction, material-handling, power generation, and manufacturing in the country, which are propelling the consumption of oil lubricants that rely on anti-wear, extreme pressure, and oxidation-inhibiting additives for improved performance, high uptime, and energy efficiency. For instance, there is high demand for synthetic or semi-synthetic lubricants as specified by large logistics fleets and modernized manufacturing plants, due to the high need for extending drain intervals and raising per-unit additive content.

Furthermore, market growth is driven by regulations and standards such as BIS standards for lubricants and environmental rules on waste oil management, which are pushing original equipment manufacturers (OEMs), refiners, and marketers toward certified additive chemistries and improved used-oil circularity programs. Therefore, all these factors are augmenting the size & volume of the Lubricating Oil Additives Market in India.

India Lubricating Oil Additives Market Scope:

India Lubricating Oil Additives Market Driver:

Expanding Automotive Sector – The market growth is primarily driven by the high and steady expansion of the country’s automotive sector, particularly its two-wheeler and passenger vehicle segments. This is exhibited by the country’s status as the world’s largest two-wheeler market and among the top in passenger cars, which is due to the rising disposable incomes of the growing population and urbanization, along with improvements in the road networks. This is driving the demand for road vehicles and the growth of the sector in the country.

Cars contain many moving metal parts, which require low friction to avoid the buildup of extreme temperatures and breakdowns, thereby increasing the need for high-performance lubricants and additives that reduce engine wear and also comply with strict car manufacturing regulations. For instance, OEMs recommend advanced lubricants to meet the standards set by Bharat Stage VI (BS-VI), which is driving the demand for additive content per unit of lubricant. Therefore, this is driving the market demand and ultimately growth during the forecast period.

India Lubricating Oil Additives Market Opportunity:

Adoption of Modern Manufacturing Practices & Automation – The adoption of industrial automation and modern manufacturing practices has been increasing in the country over the last decade. For instance, the integration of machinery has scaled up in the country’s automotive components, electronics, and heavy engineering sectors due to the “Make in India” and Production Linked Incentive (PLI) schemes. These sectors demand oil lubricants with additives to improve the performance of moving parts and increase operating cycles, reduce downtime, and comply with strict efficiency standards.

Moreover, there is an increasing infrastructure push by the country’s government with high capital expenditure allocation in the Union Budget 2024-25, which is driving the demand for construction equipment, mining machinery, and logistics fleets in the country. This is not only driving the demand for oil lubricants with high-performance additives but also creating opportunities for players to design application-specific chemistries, such as agents that can withstand extreme pressure and oxidation inhibitors, thereby contributing to the market growth over the forecast period.

India Lubricating Oil Additives Market Challenge:

High Reliance on Imports – The country is reliant on imported base oils and certain specialty chemicals that are used in additive formulations, which is due to it not producing enough high-quality base oils domestically, thereby forcing players such as additive blenders and suppliers to depend on imports, particularly from the Middle East and Southeast Asia regions. For instance, the Petroleum Planning & Analysis Cell (PPAC) noted the rising import of base oil by India. This dependency on imports is exposing players to global price fluctuations, supply chain disruptions, geopolitical risks, etc., all of which are increasing the costs of raw materials. For instance, the input prices for lubricant formulators increased significantly due to the high freight cost spikes during the 2021–22 global supply chain crisis, due to which both multinational and domestic additive suppliers faced high pressure in the market and limited their capacity to invest in product innovation and competitive pricing strategies. Therefore, this is hindering the smooth market progression in the country.

India Lubricating Oil Additives Market Trend:

Transitioning Towards Low Viscosity & Fuel-efficient Lubricants – There is increasing demand for lubricants that reduce friction and improve engine and machinery efficiency by automotive OEMs and industrial users due to the rising costs of fuel and the government’s strong push for energy efficiency under programs like the Perform, Achieve and Trade (PAT) scheme. However, oils that are of low viscosity require more advanced additive formulations, which include friction modifiers, viscosity index improvers, and oxidation inhibitors to maintain durability and performance. For instance, the specification of SAE 0W and 5W engine oils for new BS-VI compliant passenger vehicles by the collaboration between global OEMs and Indian manufacturers is increasing the demand for high additive content over conventional grades. This is benefiting suppliers of additives who can provide specialized chemistries meant for efficiency, thereby helping them capture premium segments in the market. Therefore, inclination towards low viscosity and fuel-efficient lubricants is positively reshaping the market landscape and is projected to boost the market size during the forecast period.

India Lubricating Oil Additives Market (2025-30): Segmentation Analysis

The India Lubricating Oil Additives Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Type:

• Detergents
• Dispersants
• Viscosity Index Improvers
• Anti-Wear Agents
• Extreme Pressure Additives
• Corrosion Inhibitors
• Antioxidants
• Friction Modifiers
• Others

Among these, detergents are dominating the market, and this dominance is due to their key role in neutralizing the acidic byproducts of fuel combustion and preventing the formation of deposits on the surface of engines. Its demand is further driven by the wide use of vehicles which run on low-quality fuel compared with OECD markets, thereby increasing the need for strong detergents to maintain the cleanliness of engines and extend the life of lubricant. For instance, the Ministry of Petroleum & Natural Gas reported that India still consumes high volumes of high-sulfur fuels in industrial and commercial applications, thereby driving the demand for additives that have anti-corrosive effects. Additionally, the country has an increasing population and developing road networks, where there is frequent stop-start driving in congested urban centers, thereby heightening the stress on engines and increasing the demand for detergent additives. Therefore, these factors are ensuring the lead of this additive segment in the market

Based on End-User:

• Automotive
• Industrial
• Marine
• Aerospace
• Others

Out of these, the automotive segment holds the largest market share. The market lead is driven by the country’s massive and growing vehicle fleet, particularly its increasing two-wheelers and passenger vehicle volumes. The high urbanization and still-developing road networks encourage frequent starts and stops, thereby increasing the operating cycles for both personal and commercial vehicles and increasing the demand for detergents, anti-wear agents, and viscosity improvers that protect engines and extend the drain intervals.

Moreover, OEMs in the country have tightened specifications to meet BS-VI and fuel-efficiency goals and the aftermarket’s preference for longer-life synthetic/synthetic-blend oils. This is raising the additive intensity per liter and creating a steadily higher-value demand for specialized chemistries in the market. Due to this, there are opportunities to capture volume through OEM partnerships and aftermarket positioning and investing in research and development (R&D), local sourcing, and quality certification to meet automotive performance and regulatory requirements. Therefore, the automotive sector is generating a massive market demand and ultimately driving the revenue growth of the Lubricating Oil Additives Industry in the country.

India Lubricating Oil Additives Industry Recent Development:

• 2025: LANXESS inaugurated its India Application Development Center (IADC) in Thane, Mumbai, strengthening its innovation and customer service capabilities. In a first step, it integrates expertise from two key businesses in India: Lubricant Additives (high-performance additives and additive systems, synthetic base fluids, and ready-to-use lubricants) and Material Protection Products (antimicrobial, disinfection, and preservation solutions).
• 2025: Gulf Oil Lubricants India Limited and Piaggio Vehicles Pvt Ltd. (Piaggio India) have renewed their strategic partnership agreement to extend collaboration in delivering genuine and co-branded lubricants across Piaggio's commercial vehicle segment. This exclusive partnership, renewed until 2030, underscores both companies' commitment to high-performance, customized lubricant solutions and sets the foundation for further growth across retail, factory-fill, and export markets.

Gain a Competitive Edge with Our India Lubricating Oil Additives Market Report

1. India Lubricating Oil Additives Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
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