Saudi Arabia Automotive Lubricant Market By Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler), By Demand Category (OEM, Aftermarket), By Lubricant Type (Engine Oil, Transmission Oil, Hydraulic Fluids, Greases, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Automotive Lubricant market was valued at USD 746.49 million in 2024 and is anticipated to grow USD 1,374.72 million by 2030 with a CAGR of 10.76% during the forecast period. The Saudi Arabian automotive lubricant market is experiencing significant growth, driven by increasing vehicle ownership and rising demand for maintenance products. As one of the largest automotive markets in the Middle East, Saudi Arabia's lubricant industry benefits from the country's strong oil and gas sector, providing access to high-quality base oils. The market is dominated by both global brands and local manufacturers, with a growing focus on synthetic and semi-synthetic lubricants. Increasing vehicle fleet sizes, coupled with the expansion of automotive repair and service stations, is boosting lubricant consumption. Moreover, the shift towards electric vehicles (EVs) is gradually influencing lubricant demand, though internal combustion engine (ICE) vehicles still dominate. The market is expected to continue evolving, with innovations in energy-efficient lubricants and improved fuel economy. Regulatory pressures for cleaner, more sustainable products also shape the market's development.

Market Drivers

Expansion of Automotive Service and Maintenance Network

As the vehicle population in Saudi Arabia steadily increases, the country’s automotive service and maintenance network is expanding to meet the rising demand for oil changes, routine servicing, and mechanical repairs. This growth is evident in the proliferation of service centres, workshops, and quick-lube stations across urban and rural areas. The expansion of this infrastructure not only supports vehicle upkeep but also contributes significantly to the overall consumption of automotive lubricants.

This growing network is fueling demand for high-performance lubricants that enhance engine performance, reduce wear and tear, and extend vehicle lifespans. Modern engines require advanced lubricant formulations to meet the demands of increased efficiency and emission regulations. Consequently, lubricant manufacturers are introducing premium products designed for a wide range of vehicle types and operating conditions. The expanding maintenance ecosystem, combined with consumer preference for quality products, is creating robust growth opportunities for lubricant suppliers in Saudi Arabia’s dynamic automotive sector.

Technological Advancements in Lubricant

The Saudi Arabian automotive lubricant market is undergoing a transformation driven by the introduction of high-performance synthetic and semi-synthetic lubricants. These advanced formulations are gaining traction due to their ability to deliver superior fuel efficiency, enhanced engine protection, and extended oil change intervals. Improvements in viscosity control, thermal stability, and oxidation resistance make modern lubricants essential for consumers looking to maximize engine performance and longevity.

One notable innovation is the use of low-SAPS (Sulfated Ash, Phosphorus, and Sulfur) lubricants, which offer cleaner combustion and better protection for modern engines. For instance, in May 2024, Castrol launched VECTON LONG DRAIN 5W-30 E6/E9, a fully synthetic lubricant formulated to meet the latest ACEA 2022 standards for heavy-duty engines. This advanced engine oil provides long-lasting protection, aligns with stringent regulatory requirements, and extends vehicle lifecycles, particularly in commercial fleets.

Rising Popularity of Electric Vehicles (EVs)

The rising popularity of electric vehicles (EVs) is beginning to reshape the automotive lubricant market in Saudi Arabia. While internal combustion engine (ICE) vehicles still dominate the roads, the country's increasing focus on sustainable transportation is encouraging the adoption of EVs. Unlike ICE vehicles, EVs require significantly fewer lubricants due to the absence of a traditional engine. However, they still rely on specialized lubricants for components such as gearboxes, electric motors, and wheel bearings, creating new opportunities for lubricant manufacturers. EV registrations in Saudi Arabia have more than doubled from 210 in 2022 to 779 in 2023, reflecting a sharp rise in consumer interest and early adoption. This momentum, alongside a cumulative total of over 23,000 registered EVs, is actively driving market demand for EV-compatible automotive lubricants, cooling fluids, and maintenance services.

To stay relevant in this evolving landscape, lubricant companies are actively investing in research and development to formulate products that meet the unique requirements of EVs. These innovations include dielectric fluids for cooling systems and low-viscosity lubricants that enhance energy efficiency. As Saudi Arabia continues its push toward electrification in alignment with Vision 2030, the demand for EV-specific lubricants is expected to rise, marking a key transition point for the country's lubricant industry.                                                                                                                                                                           

Download Free Sample Report       

 Key Market Challenges

Intense Competition in the Market

Intense competition is a major challenge in the Saudi Arabian automotive lubricant market, driven by the presence of both global giants like Shell, ExxonMobil, and TotalEnergies, and strong regional and local players. This crowded landscape fuels fierce rivalry in terms of product quality, pricing strategies, and aggressive marketing efforts. As a result, companies must continuously innovate and differentiate their offerings to stay relevant and retain customer attention in a saturated market.

For smaller companies and new entrants, penetrating the market becomes especially difficult due to limited brand recognition and pricing constraints. Consumers in the region often prioritize affordability and easy availability over brand loyalty, making it harder for companies to establish a stable customer base. This dynamic frequently leads to price wars, which can erode profit margins across the industry. In such a competitive environment, building trust, offering value-added services, and ensuring wide distribution are crucial to gaining and sustaining market share.

Consumer Education and Awareness

The availability of high-performance lubricants, there remains a lack of consumer education about the benefits of using advanced and specialized automotive lubricants. Many consumers in Saudi Arabia continue to choose conventional lubricants based on price rather than performance benefits, which hinders the growth of premium product segments. Lubricant companies need to invest in educational campaigns and product awareness to encourage the adoption of higher-quality lubricants, which can protect vehicle engines more effectively and improve fuel efficiency.

The Saudi Arabian automotive lubricant market faces several challenges, including intense competition, fluctuating raw material prices, environmental regulations, changing consumer preferences, and technological advancements. Addressing these challenges requires a strategic approach that involves innovation, cost management, consumer education, and compliance with sustainability goals. By overcoming these obstacles, lubricant manufacturers can continue to thrive in this growing market.

Key Market Trends

Shift Towards High-Performance and Synthetic Lubricants

A significant trend in the Saudi Arabian automotive lubricant market is the growing preference for high-performance and synthetic lubricants. Consumers and businesses alike are increasingly opting for lubricants that provide superior engine protection, enhanced fuel efficiency, and longer service intervals. Synthetic oils, due to their advanced formulation, offer benefits such as improved temperature stability and better protection under extreme conditions compared to conventional oils. As vehicle engines become more complex and performance-focused, demand for synthetic and semi-synthetic lubricants is expected to rise. This shift is also supported by automakers recommending the use of premium lubricants for newer vehicle models. For Instance, In April 2024, General Petroleum has launched a new line of high-quality automotive lubricants, crafted to deliver enhanced engine protection and optimal performance across a range of vehicles. This product expansion aligns with the company’s mission to offer advanced, reliable solutions to meet evolving industry demands. With formulations that reduce friction and extend engine life, these lubricants cater to both consumer and commercial automotive segments. General Petroleum's new offerings further reinforce its presence as a trusted partner in the automotive maintenance sector.

Focus on Sustainability and Eco-friendly Lubricants

Sustainability has become a central focus in the automotive industry, and lubricant manufacturers in Saudi Arabia are responding by increasing their efforts to develop eco-friendly lubricants. With growing environmental awareness and stricter regulations regarding emissions and waste management, there is a rising demand for lubricants that are biodegradable, reduce harmful emissions, and offer better fuel economy. Companies are now focusing on producing lubricants that meet global environmental standards, such as low-SAPS (Sulphated Ash, Phosphorus, and Sulfur) oils, which reduce particulate emissions and improve the efficiency of diesel engines. As the demand for sustainable solutions grows, the development of green lubricants is expected to be a key trend in the coming years. For instance, Chevron, in collaboration with HPCL, has launched the Caltex lubricant brand in India, aiming to expand its footprint in the automotive and industrial sectors. The partnership focuses on strengthening its presence through strategic OEM alliances and offering premium lubricant solutions. With a focus on innovation and performance, Caltex aims to cater to the growing demand for high-quality lubricants in the region. This launch positions Chevron and HPCL for enhanced market leadership in the lubricants industry. According to Saudi Arabia’s National Environment Strategy, the Kingdom aims to cut greenhouse gas emissions by 278 million tons annually by 2030, which encourages the use of low-emission products like eco-friendly lubricants. Additionally, the Saudi Standards, Metrology and Quality Organization (SASO) has implemented lubricant regulations focused on fuel efficiency and emissions reduction, further promoting adoption of sustainable formulations.

Growing Aftermarket Lubricant Demand

The aftermarket segment is witnessing strong growth in Saudi Arabia due to increasing vehicle age and mileage, which demand more frequent maintenance. A high percentage of vehicles in use are over five years old, increasing reliance on independent workshops, quick-lube stations, and online service platforms for oil changes and engine upkeep. According to the Saudi Ministry of Commerce, more than 1 million vehicles are serviced annually through private maintenance centers, contributing to sustained lubricant consumption. The growing preference for DIY maintenance, coupled with rising consumer awareness about engine care and fuel efficiency, further accelerates aftermarket lubricant sales. This trend is encouraging brands to introduce tailored product lines and loyalty programs aimed at the aftermarket, solidifying its role as a key driver of growth in the automotive lubricant market.

Segmental Insights

Vehicle Type Insight

Passenger cars represent the dominating segment in the Saudi Arabia automotive lubricant market, driven by the country’s high vehicle ownership rate and growing urban population. With a large number of daily commuters and privately owned vehicles, the demand for regular maintenance and engine lubrication remains consistently strong. This segment requires a wide range of lubricant products, including engine oils, transmission fluids, and brake fluids, contributing to substantial market consumption. Additionally, increased consumer awareness regarding vehicle performance and longevity is fueling demand for high-quality lubricants, further reinforcing the dominance of the passenger car segment in the country’s lubricant market.

Demand Category Insight

The OEM (Original Equipment Manufacturer) segment dominated Saudi Arabia’s automotive lubricant market, capturing the largest share through its strong partnerships with vehicle manufacturers and authorized dealerships. These alliances ensure that OEM-branded oils and fluids are specified, recommended, and often mandated during factory-scheduled services and warranty maintenance. As a result, consumers consistently opt for these products, confident in their compatibility and warranty compliance. OEM lubricants are formulated to meet stringent manufacturer standards, emphasizing quality, performance, and long oil-change intervals. Their widespread availability across dealership networks and service centres further cements their leadership, making OEM the preferred choice in the kingdom’s automotive lubricant landscape.

Download Free Sample Report

Region Insights

Northern and Central Saudi Arabia stand out as the dominant region in the country’s automotive lubricant market, driven by high population density, extensive urban infrastructure, and concentrated economic activity. Major cities such as Riyadh, Jeddah, and Dammam host a dense network of service centers, quick-lube outlets, and dealerships, reinforcing robust lubricant demand. These regions also experience intense vehicle usage due to commuting, trade, and logistics, which accelerates oil change cycles and maintenance needs. As a result, lubricant suppliers focus their distribution and marketing strategies here, ensuring plentiful product availability and competitive pricing to meet the substantial and consistent demand in these areas.

Recent Developments

• In April 2024, Savita Oil Technologies Ltd. has launched the Savsol Ester 5 lubricant range, offering advanced performance for automotive and industrial applications. Formulated with ester technology, it enhances efficiency, reduces wear, and improves engine longevity. This launch strengthens Savita's position in the premium lubricant market. The Savsol Ester 5 range reflects the company's commitment to delivering innovative, high-quality solutions.

• In July 2024 Stellantis, in partnership with TotalEnergies, has introduced the Quartz EV3R 10W-40, a sustainable lubricant designed to support environmental responsibility. Made from premium regenerated base oils, this lubricant is derived from waste oils that have been refined to restore their quality and performance. This launch underscores both companies' commitment to sustainability in the automotive sector. The Quartz EV3R 10W-40 is a key step toward advancing eco-friendly automotive solutions.

• In May 2025, PETRONAS has partnered with Abdul Latif Jameel for Oils Company to significantly expand its distribution network in Saudi Arabia. This strategic collaboration ensures enhanced availability of PETRONAS-branded high-performance lubricants for both passenger and commercial vehicles across the Kingdom

• In December 2023, HD Hyundai Oilbank has introduced a new dedicated electric vehicle lubricant brand, Hyundai XTeer EVF, consisting of two product tiers. The top-tier fluid is compatible with all EVs, while the mid-tier version is designed for specific models, including Tesla. These lubricants are crafted to meet the specifications of a wide range of electric vehicles, reflecting the company’s commitment to the growing EV market. The new products are designed to optimize EV performance and efficiency

Key Market Players

• Petromin Corporation
• PETRONAS Lubricants International
• BP p.l.c. (Castrol)
• AMSOIL Inc.
• TotalEnergies SE
• Shell plc
• Repsol S.A.
• FUCHS SE
• Eni S.p.A
• Exxon Mobil Corporation 

Report Scope:

In this report, the Saudi Arabia Automotive Lubricant Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Automotive Lubricant Market, By Vehicle Type:

o   Passenger Car

o   Commercial Vehicle

o   Two-Wheeler

• Saudi Arabia Automotive Lubricant Market, By Demand Category:

o   OEM

o   Aftermarket

• Saudi Arabia Automotive Lubricant Market, By Lubricant Type:

o   Engine Oil

o   Transmission Oil

o   Hydraulic Fluids

o   Greases

o   Others

• Saudi Arabia Automotive Lubricant Market, By Region:

o   Northern & Central

o   Western

o   Eastern

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Automotive Lubricant Market.

Available Customizations:

Saudi Arabia Automotive Lubricant Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Saudi Arabia Automotive Lubricant Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]