India Synthetic Lubricants Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: India Synthetic Lubricants Market (2025-30):

The India Synthetic Lubricants Market size is valued at around USD 305.71 million in 2025 and is projected to reach USD 550.51 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 10.30% during the forecast period, i.e., 2025-30. The India Synthetic Lubricants Market is significantly growing due to several growth factors, including the high automobile ownership, rising government support for the expansion of manufacturing facilities to produce synthetic lubricants in the country, the adoption of OEM-approved lubricants, and many more. One of the most prominent growth factors is the increased industrial automation, which requires high-quality machinery. These machines are increasing the demand for synthetic lubricants for their smooth operation.

Additionally, the Indian government is actively encouraging the expansion of self-manufacturing to reduce the import dependence of various synthetic lubricants by heavily investing in infrastructure development. For instance, in 2024, the launch of a new manufacturing plant for synthetic ester aims to produce about 8,000 tons per year in Mahad, Maharashtra, by Savita Oil Technologies, providing ample growth opportunities to this market. Also, the country’s government has drafted different policies, such as Make in India, Self-Reliant India, etc., to increase the manufacturing industry in the country, thus offering lucrative growth opportunities for the market players.

Moreover, among different synthetic lubricants, the polyalphaolefin (PAO) is dominating this market due to its high efficiency, durability, and thermal stability, which can be used in extreme temperature fluctuations, thus increasing the market growth. Furthermore, the adoption of the Original Equipment Manufacturer (OEM)-approved lubricants is actively transforming the market, as these lubricants increase the guarantee of products’ quality and efficiency. However, the high costs and high import dependence due to the unavailability of raw materials are restraining further market growth & expansion.

India Synthetic Lubricants Market Scope:

India Synthetic Lubricants Market Driver:

Growing Number of Vehicles – The market growth is driven by the rising number of vehicles in the country, which is increasing the demand for synthetic lubricants. For instance, in 2024, there are about 370 million vehicles registered in the country, creating a huge demand for lubricants. This is leading to frequent maintenance of these vehicles, including frequent oil refills for their smooth running.

Additionally, many people use mineral oils or semi-synthetic oils, which require more frequent oil replacement, thus increasing the market demand. For instance, the two-wheelers require oil changes after every 1,000 to 2,000 km, which increases the engine usage and lubricant consumption. Consequently, the country has increased its production capacity for lubricant manufacturing. For instance, India produces more than 1,30,000 tons of lubricants per year.

India Synthetic Lubricants Market Opportunity:

Rising Government Support – The Indian government is actively supporting this market by introducing various initiatives, such as “Make in India” and “Self-Reliant India” (Atmanirbhar Bharat), to expand the manufacturing facilities in the country. For instance, the Make in India Initiative aims to make India a global manufacturing hub, including the extension of synthetic lubricant manufacturing in the country, to avoid import dependence.

Additionally, the Atmanirbhar Bharat (2020) aims to make India a self-reliant country, which attracts foreign direct investments to build new manufacturing plants, research centers, etc. For instance, the ExxonMobil company, along with the Maharashtra government, invested about USD111 million to build a lubricant manufacturing plant in Raigad (Maharashtra) with an annual production capacity of around 160,000 kiloliters of lubricants. This facility will be active by the end of 2025. Similarly, the Bharat Petroleum Corporation Limited is increasing its production capacity by expanding its lube oil blending plant at the Kochi Refinery in Kerala. These kinds of expansions are offering ample growth opportunities to the market players.

India Synthetic Lubricants Market Challenge:

High Cost & Supply Chain Disruptions – The market is facing high production cost challenges due to advanced chemical processes and high-quality oil, which are extremely costly over mineral oils. Additionally, many raw materials, such as polyalphaolefins (PAO), esters, and many more, are exported from other countries, which ultimately increases the cumulative costs. For instance, the estimated production cost of synthetic lubricant is about USD12,000 per ton, which is hindering the market growth & expansion in the coming years.

Moreover, India further lacks the manufacturing units for the production of synthetic lubricants, which leads to a high import dependence of India for these products, thus leading to shipping delays and port congestion due to fragmented supply chains and related disruptions. For instance, Bharat Lubricants experienced a substantial scarcity of lubricant oil in India, due to conflicts in the GCC region, as these are majorly imported from GCC countries, thus restraining the market growth.

India Synthetic Lubricants Market Trend:

OEM-Approved Lubricants Gaining Momentum – The market landscape is changing due to the adoption of Original Equipment Manufacturer (OEM)- approved lubricants in the market to meet the needs of engines and machinery. This adoption facilitates better performance and builds up customers' trust as compared to the conventional and unapproved synthetic lubricants.

Several key players, such as Savita Oil Technologies, Motor Corp., Honda, etc., have started this trend and are positively transforming this market. For instance, Savita Oil Technologies is providing oil for Tata Motors Passenger Vehicles with high trust. Similarly, the Gulf of India has collaborated with multiple players to provide approved oils by companies like Ashok Leyland, Kia, Tata Motors, Mahindra, Bajaj, and many more. These adoptions are actively shaping the India Synthetic Lubricants Industry.

India Synthetic Lubricants Market (2025-30): Segmentation Analysis

The India Synthetic Lubricants 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 Product Type:

• Polyalphaolefin (PAO)
• Esters
• Polyalkylene Glycol (PAG)
• Others

Out of these, the Polyalphaolefin (PAO) segment is the largest segment, with an estimated 49% market share. This segment is leading due to its high demand from the automotive sector, which is increasing sharply. The high density of two-wheelers in India leads to the high demand for PAO, as it is highly durable, having high lubricity, thermal stability, and high efficiency.

Several key players, such as KK India Petroleum Specialities Pvt. Ltd. and PAT IMPEX INDIA (Vadodara), are the local manufacturers producing a substantial amount of PAO to meet the country’s high demand. For instance, the KK India Petroleum Specialities Pvt. Ltd. alone produces approximately 60,000 liters of PAO per year, showing the high consumption of this lubricant in the country. Apart from the automotive sector, other industrial applications, such as turbines and compressors, are contributing to its dominance in this segment.

Based on End-User:

• Automotive
• Industrial
• Marine

Among these, the automotive segment holds the largest market share of about 55%. The dominance is due to the high reliance on motor vehicles, especially motorbikes, for daily commuting. India now has more than 697 million motorbikes, which is increasing the frequency of lubricant consumption. Also, car ownership is significantly rising in the country, which is increasing the requirement for transmission fluids, gear oils, and other lubricants. Additionally, the growing penetration of e-commerce, transportation, and logistics in India has increased the number of vehicles in the country, which further boosts the demand for engine oils and other lubricants important for the automotive industry.

Moreover, India has heavy traffic congestion, which leads to reduced lubricant change intervals, thus increasing the frequency of oil change. These factors are resulting in the higher demand for synthetic lubricants from the automotive sector.

India Synthetic Lubricants Industry Recent Development:

• 2024: Bharat Petroleum Corporation Ltd. secured a 12-month tender deal to buy 1 million barrels of Abu Dhabi's Murban crude oil from TotalEnergies and agreed on a 2.5 million tonnes liquefied natural gas import contract with Abu Dhabi National Oil Co.
• 2024: Indian Oil Corporation Ltd. (IOC) has partnered with the Federation Internationale de Motocyclisme (FIM) as the official fuel partner for the Asia Road Racing Championship (ARRC) 2024–2026. As part of this partnership, IOC developed a special fuel called STORM specifically for the championship. This collaboration helps racers get better engine performance and highlights Indian Oil’s advanced fuel technology on an international motorsport platform.

Gain a Competitive Edge with Our India Synthetic Lubricants Market Report

1. India Synthetic Lubricants 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.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. India Synthetic Lubricants Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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