x close

We use cookies to improve our site and your experience. By continuing to browse on this website you accept the use of cookies.


Bookmark and Share

OEM genuine oil consumption projected to grow

Brand loyalty could support 4% growth to 2022 for OEM geniune oils, says Kline.

Mercedes OEM oil

OEM lubricants - the popular choice Image: Commons

The global analyst reports that consumers prefer OEM-brand/trademark engine oils which are exclusive to their vehicle OEM. At the same time, according to Kline, OEMs are keen to maximise that consumer loyalty by taking a greater slice of their aftermarket sales and service business.  As a result, many lubes suppliers are entering into multi-year OEM contracts.

Currently, OEM genuine oils are mainly consumed by OEM-franchised workshops and dealerships for servicing new vehicles. Accounting for more than 20% of 2017 global genuine oil volume, Toyota is the lead OEM.  However, consumption is projected to grow for all the major automakers.

Kline's David Tsui stated: “The traditional views of vehicle ownership are starting to give way to emerging trends such as vehicle subscription services which include all maintenance and insurance. OEMs are also investing in ridesharing which could lead to corporate owned fleets serviced by dealerships."

He added: "The majority of dealerships use genuine oil and, as more customers go back to the dealerships, genuine oil consumption will increase.”

Tags: Kline, Lubricants, OEM Equipment

Published 29th August, 2018

FREE lubes bulletin

Subscribe to the OATS Bulletin: a streamlined look at the month's lubricants and additives news.

First name
Last name
Email
Company
Country
 

We will never pass your details to anyone else.
Privacy policy...