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Asean Affairs   12 March 2014

Consumption of passenger car engine oil in Malaysia’s Central region reached almost 17 million liters in 2013: GfK

More are switching to higher performance synthetic motor car oil
With the escalating car population in Malaysia’s central region, sales volume of passenger car engine oil have concurrently gone up. GfK retail audit revealed that sales of passenger car engine oil in the high traffic states of Kuala Lumpur and Selangor have been on an uptrend, rising in consumption by around 10 percent more in 2013 compared to the previous year.

Findings also indicated a growing consumer preference towards synthetic oil, especially the semi-synthetic type with a higher viscosity compared with mineral based motor oils like 10W-30, 10W-40 and 20W-50 etc. Despite the fact that semi-synthetic lubricants have an average price which is almost double that of mineral lubricants, the sales volume (in liters) within the semi-synthetic segment still managed to register a double digit growth over 2012.

“Discerning consumers are aware that the more advanced refining process for synthetic oil renders them more superior in terms of purity and quality compared to conventional mineral oils,” highlighted Selinna Chin, Managing Director for GfK in Malaysia. “This type of oil is better able to meet today’s growing demand for improved performances and better protection for modern engines.”

Price of synthetic oil has remained relatively stable in the past two years; a testament that the shift in consumer demands is not just a short term swing based on more affordable pricing. According to GfK reports, average price of fully synthetic engine oil registered a marginal decline from MYR45 to MYR46, but that of semi-synthetic oil remained stable at MYR25 per liter.

GfK report also uncovered other insights into the increasingly competitive passenger engine oil market in Malaysia. In 2013, there was an introduction of some 40 new brand names into the Central Malaysia market on top of the existing 73 brands. This led to a dilution in market share and resulted with the top five selling brands growing at a slower rate of only 1% year-on-year, compared to the industry average of 9.8 percent.

“These days, more passenger cars—not just European and Japanese brands but also local manufacturers like Proton and Perodua are fitted with advanced engine technology resolved with fuel saving features while maintaining performance and reliability,” observed Chin. “This will create and drive up demand for higher quality passenger car lubricants which will continue to be the driving force behind the passenger car engine oil industry moving forward,” concluded Chin.

Since 2009, GfK Malaysia commenced tracking of passenger car engine oil sales in open retail channels, which covers car accessories shop, faster fitters and tire specialists retail.

About GfK
GfK is one of the world’s largest research companies, with more than 12,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.

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This year in Thailand-what next?

AseanAffairs   04 January 2011
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It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

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