Automotive Passenger Cars Engine Oil Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Grade (Synthetic, Semi synthetic and Minerals), By Demand Category (OEM, Aftermarket) By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 34.89 Billion
CAGR (2026-2031)	6.52%
Fastest Growing Segment	Semi synthetic
Largest Market	Asia Pacific
Market Size (2031)	USD 50.97 Billion

Market Overview

The Global Automotive Passenger Cars Engine Oil Market will grow from USD 34.89 Billion in 2025 to USD 50.97 Billion by 2031 at a 6.52% CAGR. Automotive passenger car engine oil is a specialized lubricant formulated to reduce friction, dissipate heat, and minimize wear within internal combustion engines. The market is primarily propelled by the steady expansion of the global passenger vehicle fleet and the rising demand for high-performance synthetic oils that enhance fuel efficiency. Furthermore, stringent government emission regulations are compelling manufacturers to utilize advanced lubricants that ensure compliance while maintaining optimal engine durability and performance.

A significant challenge hindering market expansion is the accelerating adoption of electric vehicles which eliminates the need for traditional engine oil. Despite this transition, the continued production and sale of internal combustion engine vehicles sustain substantial market demand. According to the European Automobile Manufacturers’ Association, in 2024, new car registrations in the European Union increased by 0.8 percent to approximately 10.6 million units. This data indicates that the installed base of conventional vehicles continues to grow and supports the ongoing consumption of engine oil products.

Key Market Drivers

The rising global production and sales of passenger vehicles, particularly in developing regions, fundamentally anchor the demand for automotive engine oil. As urbanization accelerates and disposable incomes expand, the influx of new internal combustion engine vehicles necessitates significant volumes of lubricants for both initial factory fill and subsequent scheduled maintenance. This continuous manufacturing output ensures a steady stream of vehicles entering the fleet, establishing a long-term service base that counterbalances the gradual shift toward electrification. According to the China Association of Automobile Manufacturers, January 2025, in 2024, domestic passenger car sales in China reached 22.61 million units, representing a 3.1 percent year-on-year increase.

Simultaneously, the aging of the existing vehicle fleet acts as a critical driver for the aftermarket sector. As vehicles remain in operation longer, they require more frequent oil changes and often demand higher viscosity products to manage engine wear and maintain performance, thereby extending the consumption lifecycle of lubricant products. This trend reinforces the financial resilience of service providers and lubricant manufacturers who cater to out-of-warranty maintenance. According to the European Automobile Manufacturers’ Association, September 2024, in the 'Vehicles on European Roads' report, the average age of passenger cars in the European Union has reached 12.3 years. Underscoring the financial impact of this sustained maintenance demand, according to Valvoline Inc., November 2024, in the 'Fourth Quarter and Fiscal Year 2024 Results', the company reported fiscal year sales from continuing operations of $1.6 billion, a 12 percent increase over the prior year.

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Key Market Challenges

The accelerating adoption of electric vehicles represents a structural impediment restricting the growth of the global automotive passenger car engine oil market. Unlike traditional internal combustion engine vehicles that rely on specialized lubricants to minimize friction and dissipate heat within the powertrain, battery electric vehicles utilize electric motors that do not require engine oil. This fundamental technological shift removes a rapidly expanding segment of the global vehicle fleet from the addressable market. As fleet operators and individual consumers transition toward electric mobility, the volume of new vehicles entering the market that require periodic engine oil maintenance decreases, thereby limiting the long-term demand potential for these lubricant products.

This trend is particularly pronounced in leading automotive hubs where the displacement of gasoline-powered vehicles is gaining substantial momentum. According to the China Association of Automobile Manufacturers, in 2024, the sales of new energy vehicles in China reached approximately 12.87 million units, accounting for 40.9 percent of total vehicle sales. This high rate of market penetration by electric vehicles significantly reduces the installed base of internal combustion engines in the world's largest automotive market. Consequently, this reduction in the pool of vehicles requiring conventional lubrication directly dampens the sales volume and revenue prospects for engine oil manufacturers.

Key Market Trends

The widespread adoption of ultra-low viscosity oil grades is fundamentally reshaping product portfolios as automakers prioritize fuel efficiency to meet tightening carbon emission regulations. Manufacturers are increasingly engineering engines with tighter tolerances that utilize thinner lubricants, such as 0W-16 and 0W-20, to minimize hydrodynamic drag and optimize mechanical performance. This technical shift compels lubricant blenders to reformulate premium products that ensure engine durability despite reduced oil film thickness. Highlighting the commercial impact of this transition, according to Castrol India Limited, February 2025, in the 'Annual Report 2024', the company noted that its strategic focus on thin viscosity oils, specifically 0W and 5W grades, drove volume growth at double the rate of the broader category during the fiscal year.

Simultaneously, the emergence of specialized lubricants for hybrid electric vehicles is accelerating as the industry deploys hybridization to bridge the gap to full electrification. Hybrid engines endure unique operating conditions, including frequent stop-start cycles and lower average temperatures, which heighten the risks of fuel dilution and sludge accumulation, necessitating oils with advanced additive packages for corrosion protection and stability. This distinct market segment is expanding rapidly as automakers increase hybrid output to balance emission compliance with consumer practicality. Validating the expanding installed base for these fluids, according to Toyota Motor North America, January 2025, in the '2024 U.S. Sales Results' press release, the company reported that sales of electrified vehicles surged 53.1 percent year-over-year to exceed one million units, significantly widening the addressable market for hybrid-specific formulations.

Segmental Insights

Based on market analysis, the semi-synthetic segment has emerged as the fastest-growing category in the Global Automotive Passenger Cars Engine Oil Market. This expansion is primarily driven by the segment's ability to offer an optimal balance between the affordability of mineral oils and the enhanced protection of fully synthetic variants. Consumers, particularly in emerging economies, are increasingly upgrading to these blends to secure better thermal stability and engine longevity without incurring the premium costs of full synthetics. Furthermore, these formulations effectively meet evolving performance standards established by organizations such as the American Petroleum Institute, ensuring compliance with modern efficiency requirements.

Regional Insights

Asia Pacific holds the leading position in the global automotive passenger cars engine oil market, attributed to high vehicle production levels and expanding fleet sizes in key economies like China, India, and Japan. This dominance is supported by the enforcement of rigorous emission regulations, such as China VI and the Bharat Stage VI standards, which mandate the use of compatible engine lubricants to maintain compliance and operational efficiency. Furthermore, rising urbanization and disposable incomes drive continuous growth in passenger vehicle sales, ensuring sustained demand for engine oil products throughout the region.

Recent Developments

• In September 2025, TotalEnergies Marketing India Private Limited launched a new portfolio of Quartz passenger car engine oils compliant with the latest API SQ and ILSAC GF-7 performance standards. The new range, which included viscosity grades such as 0W-16 and 0W-20, was engineered to meet the demands of modern turbocharged and gasoline direct injection engines. The company highlighted that these lubricants offered improved fuel efficiency and engine protection. This launch was significant as it introduced products meeting the newest industry specifications to the Indian market, ensuring compatibility with advanced vehicle technologies.
• In September 2024, Petronas Lubricants International collaborated with Stellantis N.V. to launch a co-branded range of lubricants called Selenia SUSTAINera. This new line of engine oils was formulated with 30% recycled base oils, aiming to reduce the carbon footprint of the product without compromising engine performance. The collaboration leveraged the circular economy model of the automotive manufacturer and the formulation expertise of the lubricant producer. The range was designed to meet the sustainability goals of both companies while providing protection for passenger car engines using advanced recycled materials in the European market.
• In June 2024, Castrol India Limited introduced a new range of Castrol EDGE engine oils specifically tailored for the passenger car segment. The launch included three specialized variants: EDGE Hybrid for hybrid engines, EDGE Euro Car for leading European original equipment manufacturers, and EDGE SUV for high-performance sports utility vehicles. The company stated that these lubricants feature PowerBoost Technology, designed to improve performance by at least 30% compared to industry limits. This development aimed to address the evolving technical requirements of modern automotive consumers and diverse vehicle types within the region.
• In January 2024, Valvoline Global Operations announced the global launch of a new premium full synthetic motor oil named Restore & Protect. Designed for gasoline-engine passenger cars, this product features proprietary Active Clean technology, which reportedly removes up to 100% of engine-killing deposits to restore engines to factory cleanliness. The formulation also includes Liqui-Shield technology to prevent future deposit formation. This launch represented a significant expansion of the company's passenger car engine oil portfolio, targeting vehicles from new models to older, high-mileage automobiles with a focus on extending engine life and performance.

Key Market Players

• Royal Dutch Shell plc
• Pentagon Lubricants Private Limited
• Castrol Limited
• HINDUJA GROUP
• Saudi Arabian Oil Co.
• Total S.A
• Gazprom
• LUKOIL oil Company
• Exxon Mobil Corporation
• Chevron Corporation

By Grade	By Demand Category	By Region
Synthetic Semi synthetic and Minerals	OEM Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Passenger Cars Engine Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Passenger Cars Engine Oil Market, By Grade:

• Synthetic
• Semi synthetic and Minerals

• Automotive Passenger Cars Engine Oil Market, By Demand Category:

• OEM
• Aftermarket

• Automotive Passenger Cars Engine Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE