Why Motul India eyes modern trade channels and four-wheeler segment

Motul India, a leading manufacturer of premium automotive lubricants, is set to introduce a selection of its products in modern trade stores, as many of these are used in both household and commercial settings.

Preetam Goswami, director of marketing and business development, Motul India, told afaqs, “This segment is rapidly growing, particularly not just in engine oils but also in care, maintenance, and additive segments—new areas within the engine oil category. We offer products such as leather creams for car seats and jackets, especially useful in winter conditions in northern regions. These are primarily FMCG and household products.”

The brand has also launched repellents designed to protect wiring systems from rodents, applicable in both residential and commercial settings.

Motul, a French lubricants company established in 1853, serves as the official supplier for multiple international racing events, including the Dakar Rally, the 24 Hours of Le Mans, and MotoGP. Motul commenced its operations in India in 2003 through Atlantic Lubricants and Specialities (ALSL).

Goswami says the brand is metro-centric, with a focus on premium quality as a core strategy. He further adds, “The lubricant industry is growing at 2-3%, while we’re achieving a growth of over 20%.”

According to Tofler, the company’s operating revenue range is over Rs 500 crore for the financial year of March 31, 2023.

The brand's sales predominantly occur via spare shops and independent workshops. “Although online sales are on the rise, it will require time to achieve a comparable level of offline sales,” he says.

Currently, the brand's products are available on Amazon and Flipkart, and it is in talks with quick commerce platforms.

Goswami says that online sales is growing among the DIY (do it yourself) cohort, which saw a substantial boost during the COVID-19 pandemic. “During this period, bike components such as chain began to rust, and people had ample time to explore maintenance,” he says.

The brand has launched products that eliminate the need for mechanics when it comes to tasks such as cleaning or lubricating chains, cleaning helmets or visors, and washing or polishing bikes or cars. To cater to the demand, the brand has introduced SKUs with reduced packaging sizes.

Motul India gets 90% of its business from engine oils. It is currently targeting the two-wheeler segment and is shifting its focus to the four-wheeler segment.

He adds that the company’s primary focus in the two-wheeler segment is on the 150 cc and above category. Goswami also notes that in the two-wheeler segment, consumers directly interact with testing products, a practice that is less prevalent in the car market.

Although the major focus is on the above 150cc segment, the brand caters engine oils to all segments beginning with 100cc.

Mechanics play a crucial role, serving as key influencers who recommend and guide consumers on the appropriate oil to use. "We provide training programmes for mechanics, educating them about oils suitable for various bikes and OEMs," says Goswami.

According to Grandview Research, the Indian lubricants market was valued at approximately $7.19 billion in 2023, with a substantial portion attributed to engine oils.

The overall market is projected to grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2030, reaching an estimated $9.70 billion by 2030. In 2023, the automotive lubricants segment, which includes engine oils, led the market, representing around 57% of the total share.

Key players and market share

According to the report, the automotive engine oils market in India is moderately consolidated, with the top five brands controlling a substantial portion of the market: Bharat Petroleum Corporation Limited leads with 22.5% market share, followed by BP PLC (Castrol) at 20%, Indian Oil Corporation Limited (Servo) at 15%, Hindustan Petroleum Corporation Limited at 12%, and Gulf Oil International at 8.5%. Other players, including Motul and Valvoline, collectively account for 22% of the market.

Marketing strategy 

The brand currently allocates its budget equally between two segments: Above the Line (ATL) and Below the Line (BTL).

ATL marketing uses mass media, such as TV, radio, and print, to reach a large audience and build brand awareness. These campaigns tend to be untargeted yet succeed in generating a wide-ranging impression of the brand. 

On the other hand, BTL marketing utilises focused, direct strategies such as promotions, events, and direct mail to engage specific consumer groups. BTL campaigns, while smaller in scale, aim to elicit direct responses.

The brand is leveraging digital and connected television platforms to target the four-wheeler segment. The company plans to recruit a celebrity ambassador or a sports figure in the future. 

The company steers clear of advertising during major cricketing events such as the World Cup or IPL to cut through the noise. Instead, it collaborates with a more targeted bilateral series.

This year, the company partnered with the India vs South Africa T20 series, while last year, it was linked to the India vs Australia T20 series.