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Passenger Car Motor Oil Bangladesh

Why Passenger Car Oil Market is Growing ?

Dec 25 • Market Insights • 295 Views • 114 Comments on Why Passenger Car Oil Market is Growing ?

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The increasing motorization rate in Bangladesh, fueled by rising average household incomes over the years, has formed the bedrock for the passenger car engine oil.

Bangladesh has become the undisputed growth region for reconditioned cars for the last decades. Currently, the market size for reconditioned cars is around Tk 5,000 cr. Each year the size of the market is increasing by 15 to 20%.

So, the passenger car engine oil market is eyeing growth mostly for the modified hybrid cars and ride-sharing services too.

This market also evaluates the passenger car population by vehicle size, fuel consumed, vehicle age, leading OEMs, and trends in passenger vehicle production, as well as engine oil demand by SAE viscosity grades, formulation types, and channels.

Last year, the government has allowed the import of second-hand hybrid cars as well as slashed the supplementary duty ranges from 5% to 45%.

Market Insiders says hybrid cars account for 10% of the total reconditioned cars brought into the country in the first half of the fiscal year.

Besides, the ride-sharing industry has made up only 23% of the transport sector and has barely made a dent in the larger picture of the larger overall transport industry.

Uber, Pathao, and other ride-sharing apps are now middle-class urban solutions to a problem that affects the masses. The emergence of the ride-sharing companies has already initiated a mobility revolution, impacting passenger car engine oil demand due to more frequent oil drain intervals in the near term.

So, the passenger car engine oil market is on the cusp of significant change triggered by forces shaping the future of mobility. These future prospects will evaluate how and when engine oil demand in the near future.

The distribution structure of this passenger car engine oil traditionally includes the following channels: primary and secondary distributors, servicing workshops, gas stations, automotive retail shops, and localized retail shops.

Because of a large market base across diverse geographical landscapes, end-users typically purchase their lubricants from servicing workshops. Many of which are operated by small businesses followed by petrol stations and localized retail shops.

However, opportunities for partnerships to this passenger car engine oil market and other lubricant products or use it as a new channel to market are among the positive factors.

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