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       OEMs’ Requirements on Engine Oil Performance in China

                                                                                                                 --Opportunities and Challenges
 
Abstract
With the rapid growth of vehicle sales and population in China in the past years andin the foreseeable future, the oil market is changing significantly. Though the size of the whole oil market is expanding slowly, the market for high performance oil is growing rapidly.OEMs require high performance oil, while operating conditions place further requirements on the formulations. OEMs are faced with a number of issues including accommodation of Chinese operating conditions, handling the difference in credential gaps and respondingto emission regulation development. Some engine oil development trends are discussed,such as the growth of the high performance oil market, the coexistence of differentcredentials, more use of low viscosity oil and introduction of the latest specifications fromN.A. and Europe etc. Opportunities and challenges coexist for oil blenders. When upgradingoil performance to meet OEMs and market requirements, they have to enrich theirproduct mix and ensure stable base oil. Convenient additive supply and cooperation withadditive suppliers are also important for the oil marketers to gain OEM business and develop
their high tier oil market
 
China Vehicle Market
Table 1 shows the vehicle sales in the past 12 years. The market grew very steadily,at low rate, in 1990s. However starting 2001, it showed some signs of acceleration.In 2002, the real acceleration came true with vehicle sales growing by 36.9% over theprevious year.
 
Table 1 Vehicle sales from 1991 through 2002
 
Year                                              1991 1992 1993 1994 1995 1996
vehicle sales in 1000 units        709 1062 1297 1353 1453 1475
Year                                              1997 1998 1999 2000 2001 2002
vehicle sales in 1000 units      1583 1629 1832 2064 2376 3254

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