Vietnam Automotive Engine Oils Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Vietnam Automotive Engine Oils Market Growth

Growing vehicle ownership in Vietnam, expansion of the automotive sector and its production capacities in the country, and innovations in engine oil technology are some of the crucial market trends which significantly contribute to the growth of the Vietnam automotive engine oils market. The market is driven by advancements in engine oil technology, which include the development of synthetic and semi-synthetic oils. These innovations offer improved engine protection, efficiency, and performance, meeting the demands of consumers who seek high-end products for their vehicles.

The competitive landscape in the country is also changing as the competition increases with the presence of newer domestic as well as international market players. Manufacturers are placing a greater emphasis on the production of eco-friendly engine oils as they are designed to minimise emissions and adhere to strict environmental laws and regulations, meeting the rising demand for sustainability in the automotive sector. Moreover, the adoption of advanced technologies in vehicles necessitates high-performance engine oils that can meet specific performance criteria and enhance the efficiency of engines that are expected to influence the automotive engine oils demand.

Key Trends and Recent Developments

Rise in the popularity of synthetic lubricants, advancements in product formulations as well as a growing shift towards the incorporation of sustainable alternatives is boosting the Vietnam automotive engine oils market value.

December 2023

UMW Lubetech and Grantt Lubricants are set to dominate the Asean countries. This is aided by the enhanced production capacity of the new factory in Pulau Indah, which has been increased to 60m litres annual capacity.

September 2023

German-headquartered lubricant manufacturer Fuchs Group held an inauguration ceremony for its new plant in Ba Ria-Vung Tau on September 14, marking its deeper penetration into the Vietnamese market.

August 2022

India's flagship overseas firm ONGC Videsh Ltd has got the seventh extension to explore for oil and gas in a Vietnamese block in the contested waters of the South China Sea.

Rising popularity of synthetic oils

Synthetic oils are rapidly gaining popularity in Vietnam. These oils are thinner in consistency and thus reduce friction. This offers a big advantage over conventional engine oils which is providing a better fuel economy. Additionally, they also aid in improving overall engine protection. They are also better for colder temperatures during the winter months, thus boosting the automotive engine oils demand growth. 

Advancements in formulations and technology

Oil change intervals have evolved from 3,000-mile recommendations in the 1970s to as much as 20,000 miles for modern vehicles. This is because of the improved base oil refining processes, synthetic oils, lubricant additives, and modern diagnostic systems. These advancements have led to reduced maintenance costs.  Moreover, these formulations also include anti-wear agents, friction modifiers, antioxidants, and additives that protect metal surfaces within the engine from corrosion and rust. 

Growing shift towards sustainable materials impacting the automotive engine oils market share in Vietnam

Individuals and businesses across the globe are actively working to help protect ecosystems, reduce pollution, and promote sustainability by using biodegradable engine oils. These biodegradable engine oils appear to be a promising approach for reducing the environmental impact caused by lubricants, while also maintaining engine performance and efficiency. These eco-friendly oils are made from renewable resources and are designed in a way that they degrade quickly.

Changing consumer spending patterns and lifestyles

As consumer spending patterns change due to the rising income levels and their lifestyles become more affluent, they start to shift towards products that bring convenience. Hence, there is a growing preference for premium and high-quality engine oil in the country. This is because the end-users desire better performance from their automotive along with a longer engine life, and improved fuel efficiency.

Vietnam Automotive Engine Oils Industry Segmentation

“Vietnam Automotive Engine Oils Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Mineral
• Semi-Synthetic
• Fully Synthetic

Market Breakup by Vehicle Type

• Passenger Vehicles
• Motorcycles
• Commercial Vehicles

Market Breakup by Engine Type

• Gasoline
• Diesel
• Alternative Fuel

Market Breakup by Region

• Southeast
• Red River Delta
• Mekong River Delta
• South Central Coast
• Others

Vietnam Automotive Engine Oils Market Share

Based on vehicle type, the market is divided into passenger vehicles, motorcycles, and commercial vehicles. Passenger vehicles account for a major market share due to rapid urbanisation in Vietnam which has resulted in an increase in car ownership. Moreover, government funding for better road infrastructure and urban development is making car ownership more feasible and appealing among customers as better roads and transportation systems enable the smoother driving of passenger vehicles.

Leading Companies in the Vietnam Automotive Engine Oils Market

The market participants are developing advanced engine oils to gain a competitive edge in the market.

• Shell Plc
• TotalEnergies SE
• Exxon Mobil Corp.
• Motul S.A.
• Chevron Corp.
• BP Plc
• Petrolimex Petrochemical Corporation
• Ap Saigon Petro JSC
• Mekong Petrochemical JSC
• Phuc Thanh Trading & Manufacturing Co. (Nikko Lubricant Vietnam)
• Others