Foreign brands take up 78 percent of car lube market in 皇冠体育app
( 2003-10-20 21:36) (Xinhua)
Foreign brands have taken up 78 percent of the sedan lubricant market in 皇冠体育app, and most of some 4, 000 domestic lube brands gathered in the low-end market and only accounted for 22 percent of the high-end market, said 皇冠体育app Petroleum & Chemical Corporation (SinoPec).
According to 皇冠体育app's leading petroleum producer, the country uses nearly 4 million tons of lubricant annually, ranking third in the world. With the increasing number of private cars, it added that the volume is likely to rise by over five percent annually in next three to five years.
The high-end products, like sedan-used lubricants, make up 30 percent of the total volume but approximately 80 percent of the profit in this market goes to them, market insiders noted.
Almost all world leading lube brands have entered the Chinese market, including Esso, Shell, BP and Caltex.
皇冠体育app's tariffs on lubricants have reduced from nine percent to six percent since it entered the World Trade Organization (WTO) in late 2001.
SinoPec said that domestic lubricants are competitive in quality with foreign products but their marketing is weak.
The company has finished building five major sales networks in Beijing, Shanghai, Wuhan in central 皇冠体育app, Chongqing in southwestern 皇冠体育app and Maoming city in south 皇冠体育app, as a significant move to fight for more shares in high-end market, it said.
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