Automotive Two Wheeler 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 15.06 Billion
CAGR (2026-2031)	7.97%
Fastest Growing Segment	Semi synthetic
Largest Market	Asia Pacific
Market Size (2031)	USD 23.86 Billion

Market Overview

The Global Automotive Two Wheeler Engine Oil Market will grow from USD 15.06 Billion in 2025 to USD 23.86 Billion by 2031 at a 7.97% CAGR. Automotive two-wheeler engine oil is a specialized lubricant formulated to minimize friction, dissipate heat, and preserve internal components within motorcycle and scooter engines, ensuring their operational longevity. The market is fundamentally driven by the expanding global fleet of two-wheelers, which provide essential and affordable mobility in developing economies, coupled with rapid urbanization that increases the demand for efficient commuting options. According to the Society of Indian Automobile Manufacturers, in the fiscal year 2023-24, domestic two-wheeler sales reached approximately 17.97 million units, demonstrating the vast scale of the vehicle base that necessitates regular fluid maintenance.

Nevertheless, a significant challenge impeding market expansion is the accelerating shift toward electric mobility. Electric vehicles utilize battery-driven powertrains that function without internal combustion engines, effectively eliminating the need for traditional engine oils. This structural transition poses a considerable threat to long-term volume growth as governments and consumers increasingly prioritize sustainable, oil-free transportation alternatives.

Key Market Drivers

The rapid surge in global two-wheeler ownership and utilization acts as the primary volume driver for the engine oil market, particularly in high-growth regions where motorcycles constitute the dominant mode of personal transport. As urbanization intensifies, the reliance on motorcycles for affordable last-mile connectivity and commercial delivery services increases, necessitating frequent fluid replacements to maintain engine efficiency. This expansion in the active vehicle fleet directly correlates with higher lubricant consumption, as internal combustion engines in these regions operate under high-stress conditions requiring regular maintenance. According to the Association of Indonesia Motorcycle Industry, January 2024, in the '2023 Market Performance' data release, domestic motorcycle sales in Indonesia alone climbed by 19.4% to reach 6.24 million units, underscoring the substantial annual additions to the global fleet that require aftermarket lubrication.

Advancements in engine technology and the subsequent adoption of high-performance lubricants constitute the second critical factor influencing market value. Modern two-wheeler engines are designed with tighter tolerances to meet stringent emission norms, requiring synthetic and semi-synthetic oils that offer superior thermal stability and friction reduction compared to conventional mineral oils. This shift towards higher-quality formulations helps manufacturers and consumers extend engine life while complying with environmental standards, thereby driving revenue growth through premiumization. According to Gulf Oil Lubricants India Limited, May 2024, in the 'Q4 FY24 Investor Presentation', the company recorded a robust volume growth of approximately 12% in its motorcycle engine oil segment, reflecting the rising consumer preference for branded, high-performance fluids. Furthermore, the sheer scale of the addressable market remains vast, as according to Honda Motor Co., Ltd., in 2024, the company's global motorcycle unit sales reached approximately 18.8 million vehicles for the fiscal year, sustaining a massive base for lubricant application.

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Key Market Challenges

The accelerating shift toward electric mobility constitutes a significant structural challenge that is directly hampering the growth of the Global Automotive Two Wheeler Engine Oil Market. This transition is driven by the fundamental difference in powertrain technology, as electric vehicles utilize battery-driven systems that function entirely without internal combustion engines. Consequently, these vehicles eliminate the necessity for traditional engine lubricants which are essential for friction reduction and heat dissipation in conventional models. This technological substitution directly erodes the addressable market volume, as every unit shift from a petrol-based scooter or motorcycle to an electric variant removes a recurring revenue stream for lubricant manufacturers and reduces the overall fleet size requiring maintenance.

The impact of this transition is substantiated by recent industry data reflecting the growing penetration of battery-operated vehicles in major volume markets. According to the Society of Indian Automobile Manufacturers, in the fiscal year 2024-25, the share of electric vehicles in total two-wheeler sales crossed 6 percent. This increasing adoption rate highlights a measurable diversion of demand away from hydrocarbon-based lubricants. As consumers continue to adopt sustainable transportation alternatives, the addressable customer base for engine oil products faces a sustained contraction, thereby impeding the long-term expansion of the market.

Key Market Trends

The proliferation of co-branded OEM genuine oil partnerships is fundamentally reshaping the aftermarket landscape as vehicle manufacturers seek to maximize recurring revenue streams beyond the initial vehicle sale. Two-wheeler OEMs are increasingly entering into long-term strategic alliances with global lubricant majors to develop and market "genuine" oils co-engineered for specific engine architectures, effectively locking in customers to authorized service networks. This trend moves beyond simple endorsement deals to deep technical collaborations where the lubricant is positioned as a critical liquid component essential for warranty compliance and optimal vehicle performance. According to The Hindu, March 2025, in the 'TVS Motor, PETRONAS Lubricants strengthen partnership' report, TVS Motor Company extended its strategic alliance with Petronas Lubricants International for another 3 years to co-develop high-performance fluids for its racing and consumer fleets.

Concurrently, the integration of nanotechnology in high-performance additive packages is emerging as a critical differentiator for addressing the severe thermal stress of modern commuting. Lubricant formulators are deploying advanced molecular technologies that form self-healing protective layers on metal surfaces, specifically targeting the high-wear regimes of frequent start-stop urban riding. These additive advancements allow oils to maintain protective film strength even under extreme heat, offering protection levels that significantly outperform conventional formulation standards. According to Castrol India, March 2025, in the 'Castrol Activ Relaunch' announcement, their upgraded formulation featuring Actibond Technology demonstrated 50% better wear protection at start-up compared to the industry-standard API SN limits, highlighting the measurable leap in protective capabilities.

Segmental Insights

The Semi-synthetic segment represents the fastest-growing category in the Global Automotive Two Wheeler Engine Oil Market. This robust expansion is driven by the product’s ability to offer an optimal balance between the affordability of mineral oils and the high performance of fully synthetic variants. As manufacturers upgrade engine designs to comply with stringent regulatory frameworks, such as the Euro V and Bharat Stage VI emission standards, modern two-wheelers require lubricants with enhanced thermal stability. Consequently, consumers are increasingly adopting semi-synthetic oils to ensure engine longevity and fuel efficiency while maintaining a cost-effective maintenance schedule.

Regional Insights

Asia Pacific maintains a dominant position in the global automotive two-wheeler engine oil market, driven primarily by the substantial fleet size of motorcycles and scooters in major economies like China and India. The region utilizes these vehicles as a primary mode of daily transportation and affordable mobility, distinct from the leisure-based usage seen in Western markets. This intensive usage pattern results in higher vehicle mileage, necessitating frequent engine maintenance and lubricant replacement. Consequently, the continuous need for servicing this massive active fleet secures the region as the leading consumer of two-wheeler engine oils.

Recent Developments

• In March 2025, Shell Lubricants introduced its upgraded full-synthetic motorcycle engine oil, Shell Advance Ultra featuring API SP specifications, during a major industry event in Thailand. This launch addressed the growing demand for premium synthetic products in the Global Automotive Two Wheeler Engine Oil Market. The new formulation utilized proprietary gas-to-liquid technology to produce a pure base oil, designed to retain horsepower over long distances and improve fuel economy. Senior executives at the company noted that the product offered enhanced engine protection and reduced evaporation, specifically catering to modern high-performance two-wheelers.
• In February 2025, Motul Asia Pacific launched the GP Ultimate 4T, a new high-performance addition to its lubricant series, catering to the premium segment of the Global Automotive Two Wheeler Engine Oil Market. This product release coincided with the company's ongoing technical collaboration with the MotoGP World Championship, leveraging racing insights for consumer products. The newly formulated oil was engineered to provide exceptional high-temperature stability and durability for both racing and road-going motorcycles. The Chief Marketing Officer of the company stated that the updated product line reflected a dedication to transferring race-proven technology to everyday riders.
• In December 2024, Gulf Oil Lubricants India Limited renewed its exclusive strategic partnership with Piaggio Vehicles Pvt Ltd, a move that solidified its position in the Global Automotive Two Wheeler Engine Oil Market. The extended agreement, valid until 2032, ensured that the company remained the authorized supplier of co-branded, high-performance lubricants for the partner’s entire range of scooters and motorcycles. This collaboration focused on developing advanced engine oils and coolants designed to enhance the reliability and fuel efficiency of two-wheelers. The Managing Director of the company highlighted that the continued alliance aimed to deliver long-term value through superior product quality.
• In April 2024, Castrol launched a refreshed version of its POWER1 motorcycle lubricant range, explicitly targeting the evolving needs of the Global Automotive Two Wheeler Engine Oil Market. The company introduced an advanced "3-in-1" formula engineered to deliver superior power, acceleration, and protection for motorcycles and scooters. This product update featured redesigned packaging and customer-centric labeling to assist consumers in selecting the appropriate oil for their vehicles. The launch emphasized the company's commitment to innovation in the two-wheeler sector, promising significantly improved wear protection and smooth acceleration compared to generic market alternatives.

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 Two Wheeler Engine Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Two Wheeler Engine Oil Market, By Grade:

• Synthetic
• Semi synthetic and Minerals

• Automotive Two Wheeler Engine Oil Market, By Demand Category:

• OEM
• Aftermarket

• Automotive Two Wheeler 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