Malaysia automotive sales a slowdown will lead to decrease in demand of auto lubricants. Companies need to evolve their product offerings and develop a reliable lubricant distribution network to maintain a competitive edge in the industry and to recover its sales.
Effect on Business
Auto sales already faced a downfall in 2019, but in 2020 the industry is projected to experience a drastic fall due to economic slowdown around the globe because of coronavirus pandemic. According to Malaysia Automotive Association, in 2020, vehicle sales dropped from 44,403 units in February to 22,478 units in March. Companies such as Petronas experienced 80% in lubricant sales during the period of March 2020-May 2020. Overall, in 2020, the vehicle sales are expected to fall by 20-30%.
Due to implementation of nationwide lockdown, the existing vehicles on road have also travelled less distance and will, therefore, require a fewer engine oil change. On an average, during normalcy a passenger car, a motorcycle, and a truck change engine oil 3-4 times, 2-3 times and 3-4 times per annum respectively. However, in 2020 vehicle owners are expected to change engine oil only once or twice. Companies are planning to continue work from home for a longer time to ensure employee safety as well as to safe on OPEX. Majority of tourist visit Malaysia Between December to March but in 2020 there was a drastic fall especially in March and April as International travel to and fro was restricted from Mid-March.
Strategic efforts by lubricant manufacturers and distributors can ensure recovery in auto lubricant by 2024. The lubricant producers should focus on the development and expansion of the distribution channels to boost sales. Partnership with workshop owners, building better communication with distributors and training distributors will boost offline sales. However, with growing traction to the e-commerce industry, the companies should focus on promoting online sales. Vehicle owners currently do not prefer buying lubricants online.
Key Segments Covered: –
By End User Industry
Passenger Car Engine Oil
Heavy Duty Engine Oil
Gear oil and Transmission Oil
By Sales Channel
OEM Workshops and Spare Part Shops
Service Stations and Garages
Key Target Audience
Lubricant Manufacturing Companies
Time Period Captured in the Report: –
Historical Period: 2014–2019
Forecast Period: 2020-2025
Key Topics Covered in the Report: –
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Challenges Faced by Lubricant Producers
Porter Five Force Analysis
Emerging Business Strategies
Best Practices in Business
For More Information on the Research Report, refer to below links: –
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Vietnam Lubricants Market Outlook to 2023 – By Grade (Mineral, Semi-Synthetic and Synthetic Lubricants), By Application (Automotive and Industrial) By Type of Automotive and Industrial Lubricants, By End User of Automotive and Industrial Lubricants End User, and By Distribution Channel of Automotive and Industrial Lubricants
Contact Us: –
Ankur Gupta, Head Marketing & Communications