Kline publishes update on 2-wheeler lubricants market

With an estimated global distribution of 490 million units, accounting for a little under 3% of the global lubricant demand, the nearly 1,080 kiloton two-wheeler lubricants market’s potential is currently overlooked and underestimated.
However, greater mobility and disposable income promise significant growth opportunities for this means of transport according to the Lubricants for Motorcycles, Scooters, and Mopeds: Global Market Analysis and Opportunities report by consulting and research firm Kline and Company.
According to a release, most of this growth is expected in developing nations throughout Asia, Latin America, and Africa where poor infrastructure, demographics, and economic realities make two-wheelers an indispensable means of transportation. Although sales volumes are forecast to remain flat in North America and Europe, both of these mature markets will see higher product demand.
The Asian region encompasses seven of the top 10 two-wheeler markets, with China alone accounting for 41% of global two-wheeler production. However, China’s two-wheeler sales are slowing down, which is contrasted by rising sales in India and Indonesia. Overall, the Asia-Pacific region is the largest motorcycle oil (MCO) market claiming approximately 76% of the global market, followed distantly by South America, Europe and North America, in order.
Kline’s energy practice analyst, Gabriel Tarle, noted, “Global MCO consumption is projected to grow at just over 6% per year over the next five years. The strongest growth is expected in Asia and South America where two-wheelers are successfully penetrating rural and semi-urban areas and the usage of two-wheelers as taxis and for goods transportation has increased.”
Tarle elaborated, “This channel consists of corner or part-time owner-mechanics running their own independent service garages. It’s called ‘high street’ because the initial lubricant purchase is made through the retail segment, either from mass merchandisers or from auto part stores. The ability to provide two-wheeler maintenance and repair services at significantly lower labor costs than franchised dealerships is the major reason for the growth of this segment.”
(April 16, 2013)