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July 6, 2018

Volume 7 Issue 4

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Esso Thailand Expands Distribution Channels

Esso (Thailand) Public Co.  plans to increase its lubricant market share by expanding its motorcycle oil distribution channels, said a company executive.

“We aim to reach an approximately 3 percent market share of [Thailand’s] motorcycle lubricant market in three years,” said Pajaree Meekangvan, Thailand lubricant sales manager for Esso (Thailand).

On June 1, the company launched five engine oils for motorcycles and scooters under the Mobil Super Moto brand. “With the launch of Mobil Super Moto, we aim to grow faster than the industry’s growth rate and be one of the top players,” said a company spokesman.

The company is planning to introduce mobile oil change service units at various locations in the country. However, the company declined to comment on details. “Motorcycle lubricant service – including mobile service units – is part of our pilot plan to increase the reach and service to Thai motorcyclists,” said the spokesman.

Like Indonesia and India, “mobile-app usage [for bike-taxis] is significantly increasing in Thailand. We are looking to all such opportunities.”

Thailand’s motorcycle lubricant market is about 88,000 metric tons per year with an annual growth rate of 1 to 2 percent, according to the company.  

Krungsri Research, a member of Japan’s Mitsubishi UFJ financial group, said motorcycle sales in Thailand are expected to grow 3 percent to 5 percent or 1.82 million to 1.86 million units this year. However, “continuing high levels of household debt will place a ceiling on demand, and so for 2019, the expectation is that sales will grow at the slower rate of 0 percent to 3 percent or 1.84 million to 1.90 million units,” the company said in its Thailand Industry Outlook 2017-2019.

Esso (Thailand) has also expanded its automotive lubricant networks. Apart from its 278 Mobil 1 Centers for automotive oil change, it has expanded distribution of automotive lubricants through the 553 Esso retail network stores and other partnership channels like the local chain of B-Quik workshops.

However, according to the company’s 2017 financial results, sales of lubricants fell during the past three years. Net sales for financial year 2017 slumped 23 percent to 2,829 million Baht (U.S. $86 million), compared to 2015.