A STUDY ON THE IMPACT OF EV ADOPTION ON LUBRICANT OIL INDUSTRY WITH REFERENCE TO SERVO LUBRICANT OIL

Dr. D. Jakir Hussain¹, Shaik Mahaboob Basha²

¹Assistant Professor (A), School of Management Studies, JNTUA, Anantapur, India

²MBA, School of Management Studies, JNTUA, Anantapur, India

Email: jakir.mba@gmail.com , mabasha80648@gmail.com

Abstract - Electric vehicles are gaining significant attention in India, raising concerns about their impact on industries dependent on conventional vehicles, particularly the lubricant oil sector. This study examines increasing EV adoption influences lubricant demand, using Servo Lubricants of Indian Oil Corporation Limited as a reference. Data was collected from the Parivahan portal, company sources, and industry reports to ensure a comprehensive and reliable analysis.

EV sales increased sharply from about 1,42,423 units in 2020–21 to 16,78,191 units in 2023–24, indicating strong growth. However, internal combustion engine vehicles still account for over 93% of total sales, maintaining a large existing vehicle base. As a result, lubricant demand continued to rise, increasing from 1.38 billion litres to 1.85 billion litres during the same period.

Despite this increase, the growth rate of lubricant sales declined from 10.14% to 4.41%, showing early signs of impact from EV adoption. This trend is explained by the fleet effect, where existing ICE vehicles continue to generate steady demand. Correlation analysis shows a moderate relationship (r = 0.66), but it is not statistically significant. Forecast results indicate that lubricant demand may reach around 2.20 billion litres, while Servo’s market share is expected to decline slightly due to changing market conditions and evolving competition.

Overall, the study suggests gradual change rather than immediate disruption, highlighting the need for strategic adaptation, innovation, and long-term planning within the lubricant industry to remain competitive in a transforming automotive environment.

Key Words:  Electric Vehicles, Lubricant Industry, Servo Lubricants, Internal Combustion Engine, EV Adoption, Data Analysis.