Engine oil trade has found an ambiguous one, as it is such a market that lacks proper trade union as well as the lacks of proper monitoring.
And the situation is being degraded while too many brands are in the same battle to secure the market share. Besides, this market is flooded with different sub-standard products.
We have observed these factors behind this trade earlier. Also, the market insiders think lack of govt. intervention on the policy to monitor this trade make this market uncontrolled one.
Currently, the situation is being tough for the entire trade. It is clear, the engine oil brands with their shelves, are struggling to hold their market shares.
Recently, we have talked with several traders of the lubricants located at Dayaganj, Banglamotor, Gabtoli, Banglabazar and tried to know the present status of the market.
Most of the traders say that it is such a market, where on an average of 4 to 5 companies are entering monthly in this trade. But unfortunately, a few days later, we saw many companies are unable to supply the required demand in this market. Even form this market, many companies have left out too.
Recently, market insiders have brought out a concerning message for the brands those who are concern about their shelves.
Their statement is that existing trademark brands are losing 5% of its lubricant shelves every month in Bangladesh.
To review that assumption, we have talked with a few oil brands.
In an exclusive interview, Syed Nazib M Rahman, Director to Runner Lube and Energy Limited said, “There are too many international brands are doing well like us Servo, BP, Mobil, Shell, Valvoline, Fuchs and other. Yes, the automotive market is a saturated one. However, we are looking positively into it.”
“We think that the automotive oil segment should bring to control. Those who are entering this market, they should study the market first, then they would come to the market,” said Mr Nazib.
Many recognized brands are facing difficulties, as the market is already flooded with more than 100 brands.
This market is expected to be 1,75,000 tonnes by the year 2018-2019.