Vietnam Automotive Lubricants Market

Vietnam Automotive Lubricants Market Size and Share:

The Vietnam automotive lubricants market size is projected to exhibit a CAGR of 4.09% during the forecast period 2025-2033. Rising vehicle ownership, growing awareness of lubricant quality, advancements in diagnostic tools, preference for high-performance vehicles, and emphasis on routine maintenance are major drivers of lubricant demand. These trends highlight increasing consumer and industry focus on vehicle efficiency, reliability, and longevity, fueling the need for high-quality automotive lubricants across both passenger and commercial segments, thereby supporting the Vietnam automotive lubricants market share.

The steady increase in vehicle ownership across Vietnam is one of the primary forces shaping the growth of the automotive lubricants market. Rapid urbanization, expanding middle-class income, and improved road infrastructure are encouraging more consumers to invest in personal and commercial vehicles. This growing vehicle base, both two-wheelers and four-wheelers, directly boosts the demand for engine oils, transmission fluids, and gear oils across both OEM servicing and the aftermarket segment. Moreover, the rise in commercial logistics operations and e-commerce deliveries has intensified fleet activity, increasing the frequency of maintenance and lubricant consumption.

In 2023, Vietnam recorded a sharp uptick in domestic automobile sales, with over 400,000 units sold across various segments, including passenger cars, light trucks, and buses. Two-wheeler sales continued to dominate, with more than 3 Million units sold, keeping Vietnam among the top two-wheeler markets in ASEAN. This surge in vehicle sales ensures long-term lubricant volume demand. Lubricant brands are now expanding their retail distribution and service center tie-ups across Tier 2 and Tier 3 cities to capture emerging demand. As vehicle ownership rates continue to grow, lubricant suppliers are focusing on regional coverage, product availability, and affordability to maintain competitive positioning.

Vietnam Automotive Lubricants Market Trends:

Vehicle Growth and Market Modernization Trends

Automotive lubricants market in Vietnam being driven by the expanding automotive sector in the country. This upward trend is reflected in the country’s domestic vehicle production. Vietnam produced around 388,500 cars in 2024, marking a 27% rise from the previous year. This production growth, coupled with higher disposable incomes, is pushing vehicle ownership across the country and directly increasing the demand for automotive lubricants. Estimates suggest that by 2027, 60% of Vietnamese households will earn more than USD 5,000 annually, indicating greater purchasing power and a stronger appetite for vehicle purchases. Infrastructure investments are further boosting market momentum. The Vietnamese government recently raised its infrastructure spending target for 2025 from 6% to 7% of GDP and revised its GDP growth objective upward from 7% to 8%. These developments are expected to expand road networks and public transport, putting more vehicles on the road and raising demand for lubricants to support routine maintenance. Supportive policies promoting domestic manufacturing are also shaping industry growth. With initiatives aimed at encouraging local vehicle and auto parts production, backed by reduced tariffs on raw materials, the automotive sector is gaining traction. These "Made in Vietnam" efforts are increasing lubricant consumption as more locally produced vehicles enter the market. In addition, advances in vehicle technology are driving the need for next-generation lubricants. Newer engines demand high-performance products that withstand extreme temperatures and offer extended service intervals. This has led to a noticeable shift toward synthetic lubricants, which meet modern standards and help enhance engine efficiency and lifespan.

Aftermarket Service Network Expansion Drives Growth

A key growth driver for the automotive lubricants market in Vietnam is the ongoing expansion of organized and semi-organized service networks. These include branded garages, multi-brand workshops, quick oil change outlets, and dealership service centers that function as major lubricant distribution and consumption points. As vehicle owners increasingly rely on professional servicing rather than DIY maintenance, lubricant manufacturers are strengthening partnerships with service providers to improve market penetration. In late 2023 and early 2024, lubricant companies such as Idemitsu and Motul signed partnership agreements with local workshop chains to enhance their visibility and product availability. New service formats offering bundled oil change and maintenance packages were rolled out in key urban centers including Hanoi, Ho Chi Minh City, and Da Nang. This trend is making lubricants more accessible to end users, supported by technician training, warranty support, and branding at service points. Additionally, rising competition among service providers has driven efforts to offer faster, more reliable oil change solutions, indirectly increasing lubricant consumption frequency. With more consumers seeking convenience and trust, the growth of the service network ecosystem is expected to remain a strong support pillar for Vietnam automotive lubricants market growth.

Vietnam Automotive Lubricants Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam automotive lubricants market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type and vehicle type.

Analysis by Product Type:

• Engine Oils
• Greases
• Hydraulic Fluids
• Transmission and Gear Oils

The demand for engine oils in Vietnam is rising due to increasing vehicle ownership and the expansion of the automotive servicing ecosystem. Engine oils are essential for reducing friction, enhancing fuel efficiency, and ensuring engine longevity. As vehicle technologies advance, there is a growing need for premium and synthetic engine oils that support high-temperature performance and longer drain intervals. Commercial fleets, ride-hailing services, and private vehicle owners are contributing to frequent oil changes, fueling steady market demand. According to the Vietnam automotive lubricants market forecast, these trends are expected to sustain long-term growth, with synthetic oils playing an increasingly prominent role in meeting evolving performance and regulatory standards.

Automotive greases play a vital role in maintaining mechanical components such as wheel bearings, chassis, and suspension systems. In Vietnam, rising vehicle numbers and a growing network of repair garages have boosted the consumption of greases. Greases are preferred for their long-lasting protective properties in high-load and high-moisture environments, especially in heavy-duty commercial vehicles and motorcycles frequently exposed to rough road conditions. As infrastructure and rural road connectivity improve, off-road and long-distance travel become more common, driving demand for durable grease solutions. Greases are also crucial in extending component life, making them essential in vehicle maintenance and repair schedules.

Hydraulic fluids are increasingly used in Vietnam's automotive sector, especially in heavy vehicles and construction-related transport. These fluids are vital for braking systems, power steering, and other hydraulic applications that require smooth operation under pressure. The growing presence of commercial fleets and construction vehicles due to ongoing infrastructure projects is directly impacting hydraulic fluid consumption. Moreover, the shift toward higher efficiency and safety in vehicle systems has increased the adoption of premium hydraulic fluids that offer better heat resistance and oxidation stability. The expansion of multi-brand workshops and OEM service centers further supports the consistent replacement of hydraulic fluids.

Transmission and gear oils are gaining prominence as Vietnamese consumers demand smoother driving experiences and improved fuel efficiency. These lubricants are essential in manual and automatic transmissions, ensuring proper power transfer and reducing gear wear. As newer vehicle models with advanced transmission systems enter the market, the need for specialized oils has grown. Additionally, the rise in commercial transport and logistics activities increases the load on vehicle drivetrains, necessitating regular maintenance and oil replacement. Lubricant manufacturers are focusing on formulating transmission oils compatible with modern vehicles, and awareness around using manufacturer-recommended products is driving the segment’s growth.

Analysis by Vehicle Type:

• Commercial Vehicles
• Motorcycles
• Passenger Vehicles

Commercial vehicles are a key growth segment in Vietnam's automotive lubricants market due to the expansion of logistics, construction, and public transport services. These vehicles operate under high-load conditions and require frequent lubrication to maintain performance and minimize downtime. The increasing demand for heavy-duty engine oils, greases, and transmission fluids in fleet maintenance contributes significantly to lubricant consumption. With Vietnam investing heavily in trade infrastructure and urban development, commercial vehicle usage continues to rise. Fleet operators also favor high-efficiency lubricants to extend service intervals and reduce fuel costs, driving the adoption of premium lubricant products in this segment.

Motorcycles dominate personal transportation in Vietnam, making them a major driver for automotive lubricant demand. Frequent stop-and-go traffic in urban areas requires regular maintenance, including oil changes, which boosts consumption of engine oils and greases specifically formulated for two-wheelers. The increasing preference for scooters and motorcycles with automatic transmissions has led to demand for specialized lubricants. Additionally, rising awareness of engine health and fuel economy among riders is driving the shift toward synthetic and semi-synthetic lubricants. Retail penetration of motorcycle lubricants through service centers, roadside garages, and e-commerce platforms has also contributed to sustained growth in this segment.

The passenger vehicle segment is growing rapidly due to rising income levels, improved financing options, and consumer preference for personal mobility. This growth directly boosts demand for high-performance engine oils, gear oils, and coolants designed for cars and SUVs. Consumers are increasingly opting for branded service centers and professional workshops, where premium lubricants are recommended. Environmental awareness and the push for fuel-efficient vehicles also support the adoption of synthetic lubricants that reduce emissions and extend engine life. As more global automakers launch advanced vehicle models in Vietnam, demand for OEM-specified lubricant solutions tailored to these cars continues to increase.

Regional Analysis:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

As per automotive lubricants market outlook in Vietnam, Northern Vietnam’s lubricant demand is driven by its industrial hubs and dense population centers like Hanoi. With significant automotive activity, including passenger and commercial vehicle growth, the region sees strong lubricant consumption. Seasonal temperature variations also create demand for lubricants that perform across different conditions. The presence of automotive assembly plants and logistics companies enhances the use of engine oils, greases, and hydraulic fluids. Moreover, infrastructure developments and cross-border trade with China increase transportation activity, creating additional pressure on fleets and the need for regular maintenance. Retail lubricant availability in both urban and semi-urban areas continues to improve steadily.

Central Vietnam is experiencing rising demand for automotive lubricants due to growing infrastructure, tourism, and port activities. The region’s expanding transport and construction sectors rely on commercial vehicles, driving the use of engine and transmission oils. Tourist-driven rental vehicles and two-wheelers also contribute to the need for frequent maintenance. Additionally, road networks connecting central provinces to economic zones are improving, increasing traffic volumes. Service stations and repair workshops in urban centers like Da Nang and Hue are stocking more branded lubricants as consumers seek better vehicle performance. The region’s climate conditions further necessitate reliable lubricant performance year-round.

Southern Vietnam, including Ho Chi Minh City, is the largest contributor to the automotive lubricants market due to its high vehicle density and commercial activity. The region is home to major logistics hubs, industrial parks, and urban centers, all driving consistent lubricant usage. Two-wheelers remain the dominant mode of transport, while rising passenger car sales have created a growing market for synthetic lubricants. Southern Vietnam’s tropical climate and frequent heavy vehicle movement require lubricants with strong thermal stability and wear protection. With an extensive network of workshops and retailers, lubricant brands are prioritizing product availability and service partnerships in the region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latest News and Developments:

• March 2025: TotalEnergies Marketing Vietnam partnered with Cao Gia Quy Environment Company to recycle waste engine oil collected from its Quartz Auto Services, Hi-Perf Moto Services, and B2B clients. This initiative aligns with Vietnam's Extended Producer Responsibility (EPR) regulations, mandating lubricant companies to recycle at least 15% of their engine oil volume or contribute to the Vietnam Environment Protection Fund.
• March 2025: Škoda Auto expanded its manufacturing operations with a new assembly plant in Quang Ninh Province, in partnership with the Thanh Cong Group. This facility will focus on assembling the Kushaq SUV and Slavia sedan and also presents opportunities for the automotive lubricants sector as demand for vehicle maintenance and lubricants grows in the region.
• March 2025: Geely Auto officially entered the Vietnamese market, with the launch of its Coolray SUV. Geely partnered with Tasco to build a USD 168 Million manufacturing plant in Thái Bình Province, with production set to begin in 2026. This move is expected to drive growth in Vietnam’s automotive sector and also catalyze demand for automotive lubricants.
• November 2024: Champion Lubricants, a brand under Belgium's Wolf Oil Corporation, announced its entry into the Vietnamese market through an exclusive distribution agreement with Vietsea Company. Champion's product range includes lubricants for motorcycles, passenger cars, commercial vehicles, and maintenance solutions.
• August 2024: MatraX Lubricants announced that it would expand into Vietnam. The company, known for its automotive lubricants, aims to meet the rising demand for high-quality lubricants in Vietnam's automotive market. This launch further solidifies MatraX’s presence in over 100 countries, with a range of automotive lubricants, greases, and additives.
• March 2024: Top Solutions Joint Stock Company commenced construction of a USD 5.5 Million grease production plant in Phước Nam Industrial Park, Ninh Thuận Province. This facility, the first in Vietnam to produce lithium-based greases, aims to supply industrial equipment and machinery sectors.

Vietnam Automotive Lubricants Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam automotive lubricants market from 2019-2033.
• The Vietnam automotive lubricants market research report provides the latest information on the market drivers, challenges, and opportunities in the regional market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam automotive lubricants industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.