Market Intelligence
Automotive China

China Automotive Lubricant Market

The market size for China’s automotive lubricants is expected to reach 5.19 billion liters in 2026, having an estimated compound annual growth rate of 5.41 percent since 2021. According to the China Association of Automobile Manufacturers, total vehicle sales of both passenger vehicles and commercial vehicles in China increased from 26.2 million in 2021 to approximately 26.8 million in 2022, an increase of 2.1 percent.  Total NEV sales were 8.9 million, an increase of 93.4 percent year-on-year. China’s car parc reached 319 million in 2022, an increase of 5.8 percent over 2021. China’s demand for lubricants specific to internal combustion engines (ICE) will coincide not only with the aging of its ICE vehicles but will also be dependent on China’s ICE vehicle production and sales, as well as the government’s policies affecting ICE vehicle ownership. In 2022, the transaction volume of used vehicles was 16.03 million in China. For the first two months of 2023, more than 2.7 million used vehicles were traded in China, up 5.68 percent year-on-year. The used car market regained strong momentum in February, and pent-up demand will continue to bring great market opportunities.


Opportunities:

  • While local lubricant manufacturers are gaining market share due to their lower prices, U.S. lubricant brands are known for their quality and still hold a significant share of the high-end lubricant market.
  • The average age of China’s car parc is likely to increase at least until 2030, offering opportunities for aftermarket companies, including lubricants.
  • In addition, with dramatic increases in EV sales expected to continue, the Chinese consumption of special lubricants for electric vehicles will reach 600,000-700,000 tons by 2025. 

Challenges Presented:

  • Domestic lubricant products have been developing rapidly in recent years and have become strong competitors to foreign products. 
  • As in other auto markets, the recommended intervals for oil changes for ICE and hybrid vehicles have increased, reducing lubricant demand over the life of a vehicle. 
  • Local products are sold through e-commerce channels at lower prices. 
  • Miscellaneous brands and counterfeits still have a considerable market share.
  • While China remains the world’s largest auto market, the demand for automotive lubricants will shift from those tailored for ICE vehicles to NEVs, as the demand for ICE-specific lubricants will ultimately decline along with the sale and scrapping of ICE vehicles in China.    


Related trade shows:

For further information, please contact CS China Auto Team:
Beijing: Ms. Jessica Tan, feng.tan@trade.gov 
Guangzhou: Mr. Karic Chen, karic.chen@trade.gov 
Shanghai: Ms. Lisa Ouyang, lisa.ouyang@trade.gov
Shenyang: Ms. Dongmei Sun, Dongmei.sun@trade.gov 
Wuhan: Ms. Catherine Le, Catherine.le@trade.gov
 

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