The Knowledge to Decide

With Automotive Aftermarket demand expected to soar at 13% from 2010 to 2018, how can industry players cash in on this market opportunity? Japnit Singh, Senior Director, Singapore and India of Spire Research and Consulting shared his insights in the Lube Report Asia magazine. Original Equipment Manufacturers (OEMs) in the automotive industry are operating in highly competitive markets. In most countries, they are fighting for market share via promotions and heavy price discounts. OEMs are always on the look-out for new income streams. It is in this context that industry players and manufacturers in Indonesia and Malaysia have been zeroing in on the lubricant oil market. Singh highlighted that post-sales services – inclusive of oil change and regular maintenance check – generate higher profit margins than vehicle sales. The current low oil prices have encouraged motorists to use their cars more often – raising demand for aftermarket services and parts, including lubricant oil.

How would you like to eat delicious fried food which contains less oil, calories and cholesterol? Oil-free air fryers offer this prospect – and are taking the cook-ware market by storm. For instance, Royal Philips – a consumer electronics company –launched the Philips Air fryer in 2012. It is an innovative kitchen appliance that enables consumers to prepare a variety of meals in a healthier way. It is now available in more than 100 countries. Moreover, it accounts for almost 50% of the global market for ‘light’ fryers – which confirms it as the number one low-fat fryer brand. The latest innovation in this field is the eco-stove. The stove operates on an internal air system that heats up the rocks to provide heat for cooking. It works by rapid circulation of hot air around the food – cooking it in a similar fashion to oil. At the same time, the solar panels charge up and provide more heat for the stove. Many companies are now venturing into this product category. For

Oils prices are at a record low due to increased oil production in Saudi Arabia – the world’s largest oil producer. Nevertheless, the Organization of Petroleum Exporting Countries (OPEC) refuses to budge on production cuts amidst falling oil prices. This could have a ripple effect on the U.S. shale oil industry, which is now facing a risk of a market share battle with OPEC. Oil production in U.S. shale fields is more expensive. Stabilization in oil prices through production cutbacks would generate some relief for them. U.S. shale output will remain the major source of new oil supply by the end of the decade. U.S. oil production was set to rise to 11.6 million barrels a day in 2020 – from 9.2 million in 2012 – making the U.S. the top oil producer by 2015. However that projection was made before the current low oil prices wrought havoc on the shale oil industry. It remains to be seen if U.S. shale oil drillers can recover from the ongoing price war with OPEC countries.