Driving Ahead
The overall positive outlook of the economy is having a multiplier effect on the automobile batteries, tyres and lubricant market in Oman

The tyre, lubricant and batteries sector in Oman is going through a healthy growth curve over the last couple of years. The rising sales of commercial as well as personal automobiles have had a positive impact on growth. Almost all the leading brands of tyres, batteries and lubricants have their presence in Oman and each brand, in its effort to capitalise on sales opportunities, is offering lucrative schemes and incentives to both the customers as well as dealers.

The overall market scenario in the GCC reflects a similar trend. According to a report by Gulf Organisation for Industrial Consulting, GCC member-states produce a number of spare parts, such as lubricant oils, batteries, brake shoes, and air-filters. The bulk of such industries are based in Saudi Arabia, Oman and Kuwait. However, car tyres are being recycled and not manufactured in this region. As far as metal tyres are concerned, Bahrain’s Aluminium Tyres Company produces large quantities, all of which are being exported.

Overall, the GCC region has been a profitable market for tyres, lubricants and batteries. European brands have always dominated the lubricant industry globally with very few originating from Japan and Middle East, like the UAE and Oman. Similarly, the battery market has also been traditionally dominated by European brands, though of late, the supply has been coming from countries like Indonesia, South Korea or Saudi Arabia with an indigenous brand from Oman. Unlike lubricants and batteries, Oman has only tyre-trading industry as there is no rubber production in the country.

Rising prices
With the prices of crude oil, steel, and other base materials for tyres, batteries, and lubricants shooting up, the sector in Oman is however being directly impacted. As S K Wig, General Manager, Mohsin Haider Darwish, explains, “Prices of tyres and batteries are volatile worldwide and price increases have been fuelled mainly by rise in prices of natural rubber, oil derivatives, steel and lead. Energy costs have gone up as well. Hence, higher prices have been a universal phenomenon across all brands of tyres and batteries. With regard to the Oman market, the demand for tyres and batteries is currently strong on account of the several infrastructural projects being undertaken and this trend is expected to continue.”

The car sale volume is also increasing rapidly in Oman for the past couple of years and estimates say that it will continue to grow for some more time to come. In the tyre segment, the market has a wide range of brands like Michelin, Pirelli, Hankook, Yokohama, Bridgestone, GoodYear, Toyo, Falken, Kumho, Continental, Ceat, etc. Apart from the increase in car sales, the growing demand of tyres is also due to the usage and maintenance. In the GCC region – being the hot seat for a longer duration of summer season than the rest of the world – tyres are one accessory that bear the brunt of burning temperatures. A few good thumb rules can prevent untimely change of the tyres ensuring the consumer good value for money.

Moving up the ladder
As far as the lubricants market is concerned, the industry has more than 30 international players in the Middle East region. Major players in the Middle East are Shell, BP/Castrol, Mobil, Total, Elf, Caltex, Valvoline, Gulf Oil, ADNOC, Veedol, Crown, ENOC, Fuchs and National.

The demand for lubricants has significantly increased in the Sultanate of late due to economic environment, population growth, general level of motorisation and industrialisation. Shell Oman has the largest market share in terms of total production, while Shell Rotella leads the market in the diesel engine oil segment, and BP’s Visco 2000 leads in the petrol engine oil segment. The three sectors which are the main consumers for lubricants in Oman are, commercial and industrial sectors with consumption standing at 60 per cent; the automotive sector consuming about 35 per cent of the lubes; and, the marine sector utilising 5 per cent.

Sunil Bantwal, Sales Manager, Oman Mechanical Services Co. Ltd. LLC, dealer of Mobil lubricant says: “Due to the economic boom in the country and the growth of industries, especially in the Sohar belt, there has been a huge demand for industrial lubricants in the last two years. Increase in the number of vehicles on the road has also increased the demand for automotive lubricants. With technology changing every day, demand for high performance lubricants has increased in recent times. New equipment and vehicles are coming out with requirement for synthetic lubricants, which, unlike mineral-based oil, keep the engine parts, gears, etc., in good condition for a longer period of time.”

When it comes to making a choice in picking up lubricant for their cars, customers in Oman are going for the best. As Alwyn Martin, Head, TBLE Division, Al-Hashar & Co, distributor of Veedol lubricants and products such as petrol engine oils, diesel engine oils, gear oils, automatic transmission fluids, brake fluids, coolants, greases, hydraulic fluids, says: “In Oman, most consumers are very conscious about which lubricant they use. However, the trend of international price increases in all lubricants has disturbed the fluency of the business over the past two years. To add to this problem, most of the brands have pampered the dealers in a big way by offering schemes, etc., to promote their lubricants and every brand is competing with the other in promotions to be one step ahead.”

Charging up
With the automobile sector on an upward curve for the last few years, the battery market is also experiencing an upswing. The Oman market has traditionally been dominated by European giants. Global big players such as Exide, AC Delco, Yuasa, NBC, FB and Rocket among others have had a firm footing in the Omani market. However, there is one brand in the market – Reem Batteries (Antara) – that is a 100 per cent indigenous product.

In recent years, products from Indonesia (GS and Incoe) and South Korea (Aurora) are also making inroads and are increasing the competition. Consumers also have to be careful as some few players lower prices by introducing low-quality gear. Nevertheless, the global players have an edge over the low-quality products in terms of reach as well range of products. The premium brands enjoy a good distribution network through a network of branches and a dedicated sales force.

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