Keep your auto parts in top gear this summer
Oman is gearing up for the mercury meltdown and everywhere air-conditioners are working over time to provide cooling respite from the swelter. What respite can we give our vehicles from the harsh, unforgiving heat? Read on to find out…

The tyre, lubricants and batteries sector in Oman is going through a healthy growth curve over the last couple of years thanks to the spurt in sales of commercial as well as personal automobiles. And in an effort to capitalise on sales opportunities, almost all leading brands of tyres, batteries and lubricants that have a presence in Oman are rushing to offer lucrative deals and service packages. The scenario is not limited to Oman and reflects a regional trend that sees Gulf States producing lubricant oils, batteries brake shoes and air-filters in large numbers.

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, supply has also been coming from countries such as 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 hitting new highs the market seems to be on a roll. However, some industry sources say that high prices have not had much of an impact on Oman as yet, at least not directly. High prices is a common phenomenon across all brands of tyres and batteries and Oman is currently cashing in on the segment thanks to hyper levels of infrastructural and developmental projects.

Car sales volumes have also witnesses a dramatic increase over the past couple of years and estimates are that the segment will continue its growth trajectory, further fuelling demand for tyres, batteries and lubricants. 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. But it’s not only car sales that is driving demand for tyres. One major driver especially in the desert environs of the GCC is usage and maintenance.

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 prodduction, 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 consumiing about 35 per cent of the lubes; and, the marine sector which makes up 5 per cent of the total lubricants market in Oman. Industry sources observe marked growth for the segment especially in Sohar where widespread development and industrial activity are driving demand for lubricants in the area.

What is also important is the demand for high performance lubricants to meet the changing trends in automobile technology. 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.

“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,” say sources from 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.

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.                                                                  Top^