In Bangladesh, the annual domestic demand for engine oils is around 100 million liters. However, it is easy to calculate the overall size of passenger car engine oil. The market analysis assumed that this market is about nearly 10 million liters.
Mostly, this market depends on the passenger vehicle population by vehicle size, fuel consumed, and vehicle age, leading OEMs, and trends in passenger vehicle production.
The future of passenger car oil market is forecasting on ride-sharing services and the rise of using reconditioned cars on the roads.
Besides, the ride-sharing industry has made up only 23% of the total transport sector, impacting passenger car engine oil demand due to more frequent oil drain intervals in the near term.
“Key engine oil brands need to look to the future, as questions such as who will be making the decision on the ‘brand’ of engine oil at the time of an oil change will be raised,” comments a Market Observers at Towards Biz.
Bangladesh is an 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%.
Around 65 reconditioned cars regularly sold in Bangladesh, which is the highest in the country’s history. Barvida says around 20,149 reconditioned cars sold in the FY 2016-17.
There has been a big jump in the purchasing capacity of the middle class. The lack of standard public transport in Dhaka and the affordable price of cars are also reasons for the boost. The market size of the passenger car segment is expected to increase more.
So, the projected four-wheeled transport has formed the bedrock for passenger car engine oil already. By 2020, the passenger car engine oil market is projected to reach 12-14 million liters per year.
These future prospects will evaluate how and when passenger car motor oil demand will change as a reaction to the growing reconditioned passenger cars, including the advent of ride-sharing.