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Goodyear Wants To Corner 30 Mn Liter P.A. In Auto Lubricants Market By 2025
Goodyear has inked a licensee partnership with Assurance International for its Lubricants foray. It is training is guns heavily in the aftermarket space in the initial phase
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One of the world’s largest tyre companies, Goodyear, which announced its foray in the Rs 50,000 crore automotive lubricants market two-days ago, is eyeing to corner around 30 million liters market (out of 760 million liters per annum auto lubricants market in India) by 2025.
“The size of the automotive lubricants for market is 760 million liters annually and in terms of value it is close to Rs. 50,000 crores annually. We intend to attain 3-4 per cent of the market in the next four years. That makes it close to 30 million liters and Rs. 800 crore,” said Sanjay Sharma, Country Head (Sales, Marketing and Operations) for Assurance International-Goodyear Lubricants.
Goodyear has inked a licensee partnership with Assurance International for its Lubricants foray. It is training is guns heavily in the aftermarket space in the initial phase. The Akron, Ohio, U.S.-based company has rolled out its new line of engine oils. And is eyeing to capture 3-4 per cent market share in the overall auto lubricants aftermarket, Sharma told BW Businessworld. Expected to be rolled out in November, under a licensing collaboration, the product line consists of a full range of lubricants for multiple vehicles including greases, brake fluid, transmission oil, tractor oil, diesel exhaust fluid, gear oil and hydraulic oils.
How is the arrangement structured? While Goodyear would provide research and development (R&D) support, Gurgaon-based Assurance International would look after manufacturing, marketing and distribution. It will also provide after-sales assistance to consumers. The lubricant products would be manufactured at two facilities in Hisar (Haryana) and Mumbai (Maharashtra).
When asked if it was the right moment to foray into the market, Sharma stated, “The overall base size of the market is itself very high. If you consider the last 10 years, there are already 36 crore vehicles already on the roads. Secondly, things will normalise in the next couple of months as we can see the September sales figures of companies like Maruti. So, the outlook remains positive for the future.”
When asked about the segments it would be catering to, Sharma further added,” “Motorcycles remain the most preferred segment that we wish to cater to. This is because this 80-84%+ of all the vehicle production in the industry. Within that it would be 80% volume and 20% value. We already have a brand recall with Goodyear tyres in the PV space and will build on that. For farm tyres, where we are strong, we will try to leverage on that in some strategic markets. So, there will be a convergence of a lot of things together.” He also maintained, “Practically t is too early for us to cater to OEMs. The way the organization evolves, we will start getting into OEMs 6-8 months down the line. We have to build a formidable distribution network to achieve that.”
Goodyear, one of the world’s largest tyre companies, employs 63,000 people and manufactures its products in 46 facilities across 21 countries around the world.