MOTORING NEWS - Nigeria and South Africa rely heavily on imported raw materials for automotive lubricants. However, the volatility of oil prices and the devaluating currencies in both countries is set to provide a huge boost to the local production of automotive lubricants, according to Frost & Sulllivan's research titled 'Analysis of the Automotive Lubricants Market - Nigeria and South Africa.'
A combined market of $2.14 billion is driven mainly by the demand for engine oils, but there has been a perceptible rise in end-user demand for other lubricants like transmission oil, gear oil and coolants.
The hike in demand for lubricants stems from a rising prominence of the middle class in both countries, which has boosted vehicle sales. Nigeria’s motorisation rate is 8.5% per annum and is tied to the country’s gross domestic product (GDP), which has increased by 7% in the past decade.
The hike in demand for lubricants stems from a rising prominence of the middle class in both countries, which has boosted vehicle sales. Nigeria’s motorisation rate is 8.5% per annum and is tied to the country’s gross domestic product (GDP), which has increased by 7% in the past decade.
Meanwhile, South Africa is a well- established vehicle manufacturing hub in Africa and this sector is expected to flourish over the next three to seven years, translating to a more expansive market for automotive lubricants.
The research study is part of the Future of Chemicals & Materials in Infrastructure & Mobility Growth Partnership Service programme, which also covers construction chemicals and materials including paints and coatings, industrial adhesives, cement and cement additives , thermal insulation, and lubricants.
The research study is part of the Future of Chemicals & Materials in Infrastructure & Mobility Growth Partnership Service programme, which also covers construction chemicals and materials including paints and coatings, industrial adhesives, cement and cement additives , thermal insulation, and lubricants.
