Vietnam Passenger Vehicles Lubricants Market Report and Forecast 2024-2032

Vietnam Passenger Vehicles Lubricants Market Size

The Vietnam passenger vehicles lubricants market is projected to grow at a CAGR of 5.70% between 2024 and 2032.

Vietnam Passenger Vehicles Lubricants Market Outlook

• As per the industry reports, the passenger car sales of the Vietnam Automobile Manufacturers' Association witnessed a growth of 8.6 per cent in May 2024, offering ample growth opportunities for passenger vehicle lubricants.

• As per the data from the Vietnam Automotive Manufacturers Association (VAMA), the total vehicle sales in the country witnessed a growth of 2 per cent in April 2024 compared to the previous year, which increases the demand for lubricants.

• As per Vietnam passenger vehicles lubricants industry analysis, the demand for synthetic engine oils is growing in Vietnam as they cause minimal environmental impact compared to conventional engine oils and can enhance engine lifespan.

Vietnam Passenger Vehicles Lubricants Market Growth

The growing production of passenger vehicles, the shift in the Vietnamese consumer preference towards eco-efficient lubricants, and the rising demand for high-performance lubricants that enhance the operational efficiency of passenger vehicles are some of the crucial drivers propelling the demand of Vietnam passenger vehicles market. The rapid urbanization is another key factor influencing the growth of the market in the country. Growing urban areas drive up the demand for personal vehicles and, consequently, for automotive lubricants.

The burgeoning popularity of bio-based lubricants is fuelling their demand as they are non-toxic and environmentally friendly in nature and offer similar or better performance to conventional lubricants. Market players are developing lubricants with extended drain intervals to increase the oil change interval as well as the frequency of vehicle maintenance. Furthermore, due to the growing deployment of EVs in the country, there is a surge in EV lubricants which can lubricate gears, bearings, and other moving components in the EVs and hybrid vehicles. This is also positively influencing the Vietnam passenger vehicles lubricants market dynamics and trends.

Key Trends and Recent Developments

Growing shift towards synthetic and semi-synthetic lubricants along with increasing technological advancements and expanding e-commerce channels are boosting the Vietnam passenger vehicles lubricants industry revenue

June 2024

Vietnam Oil and Gas Group (Petrovietnam or PVN) signed multiple agreements with its partners to proceed with the integrated development project, comprising a gas field off the coast of Vietnam and a pipeline connection to a nearby power plant.

May 2024

On May 6, the Vietnam Oil and Gas Group (Petrovietnam) announced the discovery of two new oil and gas fields, Rong and Bunga Aster. Preliminary assessments suggest a potential increase of 16.5 million barrels of oil in the Rong fields, aiding the passenger vehicles lubricants demand.

March 2024

Japan's Mitsui Oil Exploration (MOECO) has decided to develop Vietnam gas field for USD 740 million. The project, 330 km off southwest Vietnam, will comprise a gas field and a pipeline linking it to a gas-fired thermal power plant.

June 2022

Abu Dhabi National Oil Company (ADNOC), one of the world's leading energy producers, has announced its official entry into Vietnam lubricants market through their arm ADNOC Distribution Lubricants Division.

Growing shift towards synthetic and semi-synthetic lubricants

Synthetic and semi-synthetic oils are outgrowing conventional oils in popularity. These advanced lubricants offer superior engine protection, fuel efficiency, and longevity. Growing consumer awareness of these benefits, coupled with longer oil change intervals, is driving a shift towards synthetic options. The trend is particularly evident and visible in the premium vehicle segment, where higher disposable incomes fuel demand for higher quality products.

Increase in number of technological advancements

As vehicle manufacturers and consumers become more focused on fuel efficiency, there is a growing demand for lubricants that contribute to better fuel economy. Advancements in lubricant formulations are improving vehicle performance attributes such as engine efficiency, protection under extreme conditions, as well as fuel economy. Innovations also include smart lubricants that can monitor their condition and notify users when a change is needed, which plays a key role in contributing to more efficient vehicle maintenance. Additionally, the rise of electric and hybrid vehicles is also impacting lubricant formulations. Although these vehicles generally require less lubrication, the development of specialized lubricants for these types of engines is expected to boom.

Growth of Online Sales Channels

The rapid rise of e-commerce is positively impacting Vietnam passenger vehicles lubricants market value. With the greater availability and accessibility to these products through online platforms, consumers are increasingly purchasing lubricants online. This trend is driven by the greater convenience coupled with better prices that are offered online. Adding to this, brands are increasingly investing in digital marketing strategies to reach consumers through online platforms, social media, and targeted advertising.

Rising popularity of eco-friendly and green products

Rising environmental awareness and concerns are leading to a higher demand for eco-friendly lubricants. Consumers and businesses are increasingly looking for products that minimize environmental impact and have a lower carbon-footprint. The market is also witnessing an increase in the availability of biodegradable and low-toxicity lubricants, which is driven both by consumer preferences and stringent regulations and restrictions.

Vietnam Passengers Vehicles Lubricants Industry Segmentation

“Vietnam Passenger Vehicles Lubricants Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Engine Oils

• Greases

• Hydraulic Fluids

• Transmission and Gear Oils

Market Breakup by Region

• Southeast

• Red River Delta

• Mekong River Delta

• South Central Coast

• Others

Vietnam Passenger Vehicles Lubricants Market Share

Based on product type, the market is divided into engine oils, greases, hydraulic fluids, and transmission and gear oils. Engine oils occupy a significant market share due to their rising demand for the lubrication of ICEs in automobiles. The favourable properties of engine oils such as heat resistance, wear protection, and superior viscosity make them appropriate for maintaining the mechanical parts of vehicles. The demand for grease is also anticipated to rise due to its rising usage in industrial parts such as bearings and conveyors.

Leading Companies in the Vietnam Passenger Vehicles Lubricants Market

The market participants are readily offering synthetic lubricants to gain a competitive edge in the market.

• Shell Plc

• TotalEnergies SE

• Idemitsu Kosan Co., Ltd.

• Motul S.A.

• Chevron Corp.

• BP Plc

• Petrolimex Petrochemical Corporation

• Eneos Holdings Inc.

• AP SAIGON PETRO

• MEKONG PETROCHEMICAL JSC

• Others

Key Highlights of the Report

Vietnam Passenger Vehicles Lubricants Market Report Snapshots

Vietnam Passenger Vehicles Lubricants Market Size

Vietnam Passenger Vehicles Lubricants Market Growth

Vietnam Passenger Vehicles Lubricants Market Share

Vietnam Passenger Vehicles Lubricants Companies