Global electric vehicle sales have grown at high double-digit rates for the past several years, leading to forecasts of EVs becoming large portions of the worldwide car parc. Unexpected changes in technology and politics could speed up or slow the trend, hampering efforts to predict when such advances will occur, an industry insider said.
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Boris Kamchev is a staff writer and Russia-based East European correspondent for LNG.
Prior to joining LNG, Boris was a Russia-based reporter for several Macedonian weekly magazines and newspapers.He had a 16-month stint as a business reporter for The St. Petersburg Times, a St. Petersburg, Russia-based English language newspaper. He also contributed analyses to Russia Profile, an English-language web-news service of RIA Novosti news agency.
Proficient in English, Russian, Macedonian and several other languages, he was a Fulbright visiting scholar at the University of Missouri's School of Journalism and holds a BA degree from his native Macedonia.
API Group I rationalization continues to occur in Europe, Russia and the Commonwealth of Independent States – with more expected in the Middle East – while an influx of new Group II capacity is projected to result in a surplus of that grade in Russia and CIS countries, an industry insider said.
Kline & Co. consultants predicts that passenger car motor oil demand in most of the largest auto markets will decrease at a compound annual rate of 0.1 percent through 2040 due to the impacts of electric vehicles, without which demand would rise at 0.9 percent annually.
Imports are on the rise in Russia’s grease market, but domestic lubricant makers are trying to displace them by offering products of similarly high quality. However, low-quality greases made by some domestic producers continue to dominate a large portion of the market, an industry insider said.
Russian motorists who purchase motor oil most often consider factors such as original equipment manufacturers’ recommendations, the oil’s viscosity and their personal experience with the product, as well as the price, a consultancy found.
Russia’s motor oil consumption is expected to rise by a compound annual rate of 1.4 percent through 2024 as the country’s active vehicle parc increases, while sales of new Russian-made cars stagnate, a consultancy found.
Despite a current slump, an Infineum official said China’s car market still has big potential to expand, and the quality of lubricants that it needs are also rising.
Technological advances in the automobile sector and shifting social trends will change the landscape of transportation and help shape the future of the lubricants industry, an analyst said at a conference here last week.
Greif, an American manufacturer of industrial packaging, expanded its operations in Russia with a second intermediate bulk container production plant to serve its lubricants industry customers, the company told Lube Report.
German lube maker Fuchs Petrolub SE broke ground recently on a U.S. $6.2 million warehouse at the headquarters of its United Kingdom subsidiary – a project aimed at boosting flexibility and increasing production at the facility.
Lukoil opened a blending plant in Kazakhstan last week, saying it will use the facility to optimize its supply in that country, to penetrate China more effectively and to expand in Central Asia.
Africa is one of the developing regions where lube suppliers can find comfort in an otherwise underwhelming global scene.
A market research firm projects Russia’s motor oil demand to grow at a compound annual rate of 1.6 percent from 811,000 tons in the July 2017 to July 2018 period to almost 878,000 tons by the July 2022 to July 2023 period, boosted by increased demand for passenger cars and buses.
German-Turkish joint venture Opet Fuchs last week announced the start of operations at its lubricant blending plant in Aliaga, Turkey, near Izmir, saying the plant was built to meet rapid sales growth in the country and in the neighboring markets.
German lubricant and grease maker Zeller & Gmelin is expanding its grease production and tank storage capacity to meet growing demand. The expansion work at its Eislingen production site should be complete by the end of 2019, the company confirmed to Lube Report on Monday.