International crude oil fluctuations trigger shocks in the lubricant industry
author: Ann
2025-04-17
The fluctuation of international crude oil prices is like a boulder falling into water, which has caused a thousand waves in the lubricant industry, causing the industry to experience the most violent price fluctuations in nearly five years. Recently, well-known lubricant companies such as Shell, Mobil, Fuchs, and Tianjin Sunstone have issued price increase notices, and the curtain of the industry's deep adjustment period has been opened.
Under the high cost pressure, the industry is in obvious pain. In Guangzhou South China International Auto Parts City, Mr. Chen, a distributor who has been engaged in lubricant business for 20 years, pointed to the price tags on the shelves and sighed. The price of a certain brand of grease increased by 21.8% year-on-year. The leading companies have issued a total of 7 price adjustment notices in 2024, and small and medium-sized brands have "increased monthly". According to data from the China Petroleum and Chemical Industry Federation, the price of additive lithium hydroxide has soared, and the price of base oil has risen by 65% at the same time, which has driven the production cost of lubricants to surge, and the gross profit margin of the entire industry has dropped by an average of 8-12 percentage points. Small and medium-sized brands are in trouble. After a regional brand in Guangdong tried to increase prices by 10%, its monthly sales plummeted by 40%. According to the data from the State Administration for Market Regulation, the amount of money involved in the investigation and punishment of fake motor oil cases nationwide in 2024 exceeded 320 million yuan, and the phenomenon of "bad money driving out good money" has exacerbated consumers' trust crisis in small and medium-sized brands.
The rise of new energy vehicles has given rise to a revolution in lubricant products. In 2024, the market size of lubricants for new energy vehicles in my country reached 4.8 billion yuan, a year-on-year increase of 67%. The proportion of fully synthetic lubricants exceeded 70%, and the use rate of ester synthetic oils in hybrid models reached 85%. Volkswagen's new energy special oil sales increased by 120%, and its π power series was certified by 25 automakers, which can reduce engine wear by 37% and reduce carbon emissions by 19%.
Dealers seek to break through in the wave of digitalization. In Wufang Tianya Auto Parts City in Beijing, the manager of a lubricant store generates maintenance plans for customers through an intelligent system that connects to the data of 230 million motor vehicles nationwide. According to a survey by the China Lubricant Dealers Association, 60% of respondents are under pressure to have an inventory turnover of more than 90 days, but dealers connected to the digital system have increased their inventory turnover rate by 45% and their customer repurchase rate by 32%. The bio-based lubricant production line of a lubricant production base in Wuhu, Anhui Province is running at full capacity. Its products use 70% plant-based raw materials, and the carbon emission intensity is reduced by 45%, which meets the policy requirements of the EU Stage V emission standards. The policy has promoted the industry's R&D investment to grow by 25%. It is expected that by 2025, the market size of bio-based lubricants will exceed 5 billion yuan, with an annual compound growth rate of 22%.
Faced with the situation that the market concentration is about to exceed 60%, small and medium-sized dealers are accelerating differentiation. Ms. Li, a dealer in Jinan, focuses on the commercial vehicle aftermarket and provides customized lubrication solutions for logistics fleets, helping the fleet to reduce fuel consumption by 15%. Industry experts pointed out that future competition will revolve around "precision service", and dealers should build a three-dimensional system of "product + data + service". At a new energy vehicle charging station in Guangzhou, the owner Mr. Wang gave up low-priced brand-name engine oil and chose Volkswagen new energy special oil, which reflects the reshaping of consumer decisions by technological added value and service professionalism.
The deep adjustment of the lubricant market is the inevitable pain of industrial upgrading. From cost pressure to new energy demand, and then to digital transformation, the industry is undergoing a transformation from "quantity" to "quality". Only companies that grasp technology trends, embrace digital transformation, and build a service ecosystem can stand out in this reshuffle.
Under the high cost pressure, the industry is in obvious pain. In Guangzhou South China International Auto Parts City, Mr. Chen, a distributor who has been engaged in lubricant business for 20 years, pointed to the price tags on the shelves and sighed. The price of a certain brand of grease increased by 21.8% year-on-year. The leading companies have issued a total of 7 price adjustment notices in 2024, and small and medium-sized brands have "increased monthly". According to data from the China Petroleum and Chemical Industry Federation, the price of additive lithium hydroxide has soared, and the price of base oil has risen by 65% at the same time, which has driven the production cost of lubricants to surge, and the gross profit margin of the entire industry has dropped by an average of 8-12 percentage points. Small and medium-sized brands are in trouble. After a regional brand in Guangdong tried to increase prices by 10%, its monthly sales plummeted by 40%. According to the data from the State Administration for Market Regulation, the amount of money involved in the investigation and punishment of fake motor oil cases nationwide in 2024 exceeded 320 million yuan, and the phenomenon of "bad money driving out good money" has exacerbated consumers' trust crisis in small and medium-sized brands.
The rise of new energy vehicles has given rise to a revolution in lubricant products. In 2024, the market size of lubricants for new energy vehicles in my country reached 4.8 billion yuan, a year-on-year increase of 67%. The proportion of fully synthetic lubricants exceeded 70%, and the use rate of ester synthetic oils in hybrid models reached 85%. Volkswagen's new energy special oil sales increased by 120%, and its π power series was certified by 25 automakers, which can reduce engine wear by 37% and reduce carbon emissions by 19%.
Dealers seek to break through in the wave of digitalization. In Wufang Tianya Auto Parts City in Beijing, the manager of a lubricant store generates maintenance plans for customers through an intelligent system that connects to the data of 230 million motor vehicles nationwide. According to a survey by the China Lubricant Dealers Association, 60% of respondents are under pressure to have an inventory turnover of more than 90 days, but dealers connected to the digital system have increased their inventory turnover rate by 45% and their customer repurchase rate by 32%. The bio-based lubricant production line of a lubricant production base in Wuhu, Anhui Province is running at full capacity. Its products use 70% plant-based raw materials, and the carbon emission intensity is reduced by 45%, which meets the policy requirements of the EU Stage V emission standards. The policy has promoted the industry's R&D investment to grow by 25%. It is expected that by 2025, the market size of bio-based lubricants will exceed 5 billion yuan, with an annual compound growth rate of 22%.
Faced with the situation that the market concentration is about to exceed 60%, small and medium-sized dealers are accelerating differentiation. Ms. Li, a dealer in Jinan, focuses on the commercial vehicle aftermarket and provides customized lubrication solutions for logistics fleets, helping the fleet to reduce fuel consumption by 15%. Industry experts pointed out that future competition will revolve around "precision service", and dealers should build a three-dimensional system of "product + data + service". At a new energy vehicle charging station in Guangzhou, the owner Mr. Wang gave up low-priced brand-name engine oil and chose Volkswagen new energy special oil, which reflects the reshaping of consumer decisions by technological added value and service professionalism.
The deep adjustment of the lubricant market is the inevitable pain of industrial upgrading. From cost pressure to new energy demand, and then to digital transformation, the industry is undergoing a transformation from "quantity" to "quality". Only companies that grasp technology trends, embrace digital transformation, and build a service ecosystem can stand out in this reshuffle.
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