RISING DEMAND FOR PASSENGER VEHICLES IN EMERGING ECONOMIES
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The automotive industry in India, China, Brazil, and South Korea is growing rapidly because the global automotive market has developed immensely over the past decades in terms of markets, production capacity, and competitive standards. Emerging economies such as India and China are the most populated countries globally, enabling a huge domestic market. In addition, emerging countries have taken advantage of foreign direct investment and helped MNCs to set up their assembly plants in various countries.
Also, new industrial policies implemented by governments of emerging economies helped increase the automobile industry's production capacity. As per the International organization of motor vehicle manufacturers, since 2005, the automobile industry has shown rapid growth in emerging economies because of low-cost raw materials, low cost of skilled labor, and increased foreign direct investment (FDI).
The automotive lubricants market size was valued at USD 78.9 billion in 2022 and is expected to reach USD 100.6 billion by 2027, growing at a CAGR of 4.87%. An automotive lubricant is used for lubricating automotive parts to minimize friction in vehicles. It also performs a variety of secondary roles. It aids in the cleaning and cooling of engine parts and the prevention of rust and corrosion accumulation. The automotive lubricant market is changing as the customers demand better-performing lubricants that would enhance the engine's fuel economy and deliver better performance. Advancements in technology-supported catering to diverse automotive needs such as increasing the shelf life of the engine, reducing carbon footprint, improving fuel economy, supplying lubricants with low viscosity, and meeting the changing vehicle emission standards. The increasing use of passenger cars and commercial vehicles in emerging economies has fueled the automotive lubricant market.??
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The key players have undertaken various strategies to grow in the automotive lubricants market. Companies in the automotive lubricants industry compete strategically. The growth in sustainable processes and initiative has been a challenge for all companies globally. Technological advances and environmental and economic challenges drive the demand for innovative and sustainable automotive lubricant products.