Shell reports falling lubricant sales

The automotive lubricants market has contracted 2-3% this year, due mainly to the troubled economic and political situation in Thailand, according to Shell. The country’s biggest seller of automotive lubricants said the total market for lubricants in the past six months was 450 million liters. Lubricants are divided into three types – consumer, industrial and transport. Shell had a market share of 20% in the first six months and expects to increase it to 22% by the end of the year. “The fact is that consumers do have money, but are more careful where they spend this money. A result of this is that they are pickier when it comes to choosing lubricants. Customers are now looking for more value for money. Our research has shown that previously engine oil was something customers did not consider seriously as it was an occasional item, but now more people come and ask the mechanics what the right oil should be,” said Pissawan Achanapornkul, Shell’s sales general manager for Southeast Asia North. Shell markets its consumer automotive lubricants under the Helix brand, which has been in the Thai market for more than 15 years. “We have grown by about 2-3 % when the market is going down overall, which shows that more customers accept our products as better quality,” Pissawan said. The lubricant market usually grows at about the same rate as the GDP. Thailand’s GDP growth was forecast to be 5.5% at the beginning of the year. (August 29, 2007)