The Indian automotive industry is undergoing a transformative shift, and electric vehicles (EVs) are at the forefront of this evolution. While much of the focus remains on the electrification of transport, there is a parallel and equally significant impact unfolding in the lubricants market. As EVs steadily replace internal combustion engine (ICE)vehicles, the demand for traditional engine oils is poised for disruption.
EV Market Growth in India
The table illustrates the significant growth in electric vehicle (EV) sales across all vehicle categories in India over the past three years (CY 2022–CY 2024). Notably, the two-wheeler (2W)segment saw EV sales jump from 6.81 lakh in 2022 to over 12.1 lakh in 2024,with EV penetration increasing from 4.1% to 6.2%. Similarly, three-wheeler(L5N) EVs experienced strong adoption, achieving a 24.2% penetration rate in2024. The four-wheeler (4W) segment also expanded, with EV sales crossing 1lakh units in 2024, up from 43,120 units in 2022. Overall, the consistent year-on-year rise in both EV sales and market penetration indicates a robust shift towards electrification in India’s mobility ecosystem.
Source:- Analysis of India’s CY 2024 EV sales, EVreporter.com
Impact on Demand for Engine Oils
One of the most significant impacts of the EV transition is on the demand for engine oils. Since EVs do not use combustion engines with pistons, valves, or spark plugs, they eliminate the need for engine oils that dominate the current lubricants market in India. This presents shift rather than a decline—prompting the lubricant industry to diversify and innovate toward EV-compatible fluids.
According to industry estimates, EVs use up to 70% fewer lubricants than their ICE counterparts over a vehicle's lifetime. This shift has significant implications for lubricant manufacturers, distributors, and service stations across India.
Opportunities in Specialized EV Fluids
While EVs reduce the need for traditional engine oils, they open the door to a new category of specialized fluids. EVs require specific lubricants and thermal management fluids for electric motors, gearboxes, and battery systems. These include:-
Dielectric coolants
EV transmission fluids
Greases for electric motors
Battery thermal management fluids
Manufacturers who innovate in these segments will be better positioned to capture emerging demand. Companies like Infineum and Shell have already begun developing dedicated EV fluid ranges, anticipating this shift.
The Rise of Sustainable and Bio-Based Lubricants
India’s sustainability push and circular economy goals are encouraging the development of environmentally friendly lubricants. EV-compatible, biodegradable, and bio-based fluids are gaining traction. These products not only support green mobility but also align with the expectations of environmentally conscious consumers and policymakers.
Adapting Business Models
Lubricant marketers in India must pivot from volume-driven strategies to value-added services. With fewer oil changes required, workshops may shift to offering specialized EV maintenance services, battery diagnostics, and software upgrades. Lubricant companies may also explore digital platforms for educating mechanics and end-users about the new range of EV fluids.
Conclusion: From Disruption to Reinvention
The EV revolution is not just a disruption—it’s a reinvention of the lubricants industry. For India, this means rethinking product portfolios, investing in R&D, and aligning with a cleaner, more sustainable mobility future. The lubricant brands that recognize and act on these shifts today will be the market leaders of tomorrow.