Motul India to expand production as country becomes its largest global market

Motul India has become the lubricant maker’s largest market by volume worldwide. The company expects annual growth of 10-15% over the next four years and plans to add a new manufacturing line in India through a dedicated partner. This move follows Motul India’s doubling of volumes in the past four years.

Key Highlights

• Motul India is now the company’s largest market by volume worldwide
• Company plans a new dedicated manufacturing line to support 10-15 percent annual growth
• The retail network expanded to about 70,000 urban and 15,000-20,000 rural outlets
• Two-wheelers account for 60-65 percent of sales but car segment is growing
• About 90 percent of raw materials are sourced locally to reduce supply chain risks

Expansion and Manufacturing Plans

Nagendra Pai, CEO of Motul India & South Asia, stated that the company needs additional capacity to support its projected growth. The proposed facility will be a dedicated manufacturing setup, not a generic third-party arrangement. Motul will retain control over raw material sourcing, vendor pricing, and product formulations. The manufacturing partner will convert Motul’s formulations into finished products.

India is now Motul’s single-largest market by volume. The parent company considers India a separate strategic market, distinct from the rest of Asia, the Middle East, Europe, and America. Motul India’s growth accelerated after the Covid period, with volumes and revenue growing at about 15% CAGR over the last four years. This growth is attributed to wider distribution and products tailored for Indian usage conditions.

Distribution and Product Portfolio

Motul has expanded its retail network from 20,000-25,000 outlets to about 70,000 urban outlets, plus another 15,000-20,000 in rural areas. The company sells lubricants and fluids for two-wheelers, scooters, passenger cars, commercial vehicles, and industrial applications. Its product range includes engine oils, gear oils, transmission fluids, coolants, vehicle care, maintenance products, and chemical solutions.

Motul aims to be among the top three lubricant players in the aftermarket by 2030, focusing on profitability rather than just volume. The company emphasizes innovation-led growth, including sustainable lubricants, re-refined base oils, and products for future fuels like biofuels and hydrogen.

Sales Mix and Market Strategy

Motul India’s business is still led by two-wheelers, which account for 60-65% of sales. Passenger cars contribute 20-25%, and commercial vehicles account for 7-8%. Four years ago, two-wheelers made up about 80% of sales. The share has decreased as the car lubricant business has grown. Motul expects the car segment to grow faster, supported by products developed for Indian cars and conditions.

The company is preparing for a market with multiple technologies, including hybrids, ethanol blends, biodiesel, hydrogen, and electric vehicles. Motul is developing lubricants for E27-compliant vehicles and may prepare for higher ethanol blends if needed. The company is also working on EV cooling solutions with a major Indian commercial vehicle manufacturer and testing products for data center cooling.

Rural Reach and Supply Chain

Motul has expanded its rural presence, now reaching 15,000-20,000 rural outlets. Rural markets contribute about 10% of sales and are expected to grow. The company works with around 7,000 garages and is expanding its garage program to smaller mechanics and workshops, especially in the entry-level two-wheeler segment.

About 90% of Motul India’s raw materials are sourced locally, which has helped manage global supply disruptions. However, the West Asia crisis remains a risk due to potential impacts on crude supply and shipping. Local sourcing and long-term contracts provide some stability, but a disruption in crude supply to India would affect the entire industry.

Future Outlook

Motul India’s next phase will focus on scaling capacity, deepening rural reach, and growing its car and care product portfolios. The company is preparing for a future where internal combustion engines, hybrids, biofuels, hydrogen, and EV cooling technologies coexist in the Indian market.

CarBike 360 Says

​Motul India’s expansion plans highlight the country’s growing importance in the global automotive ecosystem. With demand for high-performance lubricants on the rise, the new manufacturing line is expected to strengthen supply capabilities and support future growth.