WINNING

MYANMARS
AUTOMOTIVE LUBRICANT MARKET

September 2014
Solidiance has produced this white paper for information purposes only. While every effort has been made
to ensure the accuracy of the information and data contained herein, Solidiance bears no responsibility for
any possible errors and omissions. All information, views, and advice are given in good faith but without
any legal responsibility; the information contained should not be regarded as a substitute for legal and/or
commercial advice. Copyright restrictions (including those of third parties) are to be observed.

Content
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21
26

Myanmars Automotive Market Overview

Automotive Lubricants in Myanmar
Myanmars Automative Lubricant Market

EXECUTIVE SUMMARY
This white paper focuses on the lubricant market in Myanmars
automotive sector to deep dive in the industry by looking at
consumption level, current and future trends, value chain structure,
product segmentation and competition intensity. During the course
of the research, a number of vehicle types e.g. passenger cars,
commercial vehicles and two wheelers have been observed to
analyze its lubricant consumption patterns.
The automotive lubricant market in Myanmar has recorded
significant changes within the last 3 years, with the emergence of a
mid-end and a nascent higher-end segments. Main drivers for these
changes are the end of international sanctions against Myanmar
and regulatory change in car importation which positively affected
car imports, boosting its circulation number by 8% in the last 3
years. The increase in purchasing power and reception of loans
from international institutions to modernize infrastructure have
also positively impacted two wheelers and commercial vehicles
sales, raising the lubricant consumption -- especially engine oil.
The market share of low-grade lubricant has now shrunk to 60%
from 90% before 2010, while at the same time medium-grade and
high-grade lubes account for 35% and 5%, respectively.
Although there are more products available, customers knowledge
about lubricants and its benefits for their engine remain limited.
Moreover, price-sensitive Myanmar customers are often lured by
promotion and sales incentives, making the current competition
fiercer among more than 200 brands including local, Asian and
International brands.

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Country Overview

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Economy

Population

Road infrastructure

GDP

H as B ee n S teadi ly In creasin g F o r T he
Past F ive Y ears A n d I S f o recasted T o
G r o w at 6.7% In 2014
Myanmars Nominal GDP (in US$ Billion) and GDP Growth (2007-2014)
GDP growth averages 5.46% per year in 7 years

52.6
Billion USD
2012 Gross Domestic

7 year GDP growth average is 5.46%

70

6.7

Product (at current prices)

6.5

60

6.5%

50

6.3
5.5

5.1

5.3

5.5

5
40

3.6

2013 GDP Growth (est)

66.0

30

45.4

20

5.1%

10

2013 Inflation Rate (est)

31.4

51.4

52.6

58.9

35.2

20.2

2007

2008

2009

2010
GDP

2011

2012

2013e

2014e

Growth

The countrys economy expanded to an estimated 6.3% in financial year April 2012/March 2013
compared to an average of 5% in previous 5 years. The accelerating GDP growth reflects business
optimism, buoyed by the governments policy to liberalize the economy since 2011 and prospects
for further reform. Increasing industrial output and services had offset a modest growth in
agriculture due to floods in 2012/2013.

Source: Solidiance Analysis, ADB, World Bank

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MYANMAR RANKS 24TH AMONG

THE WORLDS MOST POPULOUS
NATIONS WITH ANNUAL
POPULATION GROWTH OF 1.3%
BETWEEN 2007-2012
Myanmars Population (in million) and Population
Growth (2007-2012)
Annual growth averaged 1.3% in 6 years

62

61

60

59

61.1

58

59.8

60.4

59.1

57

58.4
56

57.5

55

2007

2008

2009

2010

2011

2012

Population
Source: ADB, UN, Ministry of Foreign Affairs Myanmar

Myanmars population had tripled in a span of 50 years from just 21 million people
in 1960 to 61.1 million people in 2012. It ranked 24th among the worlds most
populous countries. The country covers an area of 676,578 square kilometer,
making it the second largest country in Southeast Asia and the worlds 40th
largest by size. Myanmar is home to 135 ethnic groups with main ethnicities are
Kachin, Kayah, Kayin, Chin, Banmar, Mon, Rakhine and Shan.

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YANGON IS THE MOST DENSELY

POPULATED AREA, FOLLOWED BY
MANDALAY AND NAYPYITAW
MANDALAY

Second largest city with over 1 mn population

Increasing growth of Chinese population with 25% increase over 20 years

Mandalay

NAY PYI TAW

Relatively new capital city

Population approximately 1 mn

Nay Pyi Taw

yangon

Yangon

Capital city until 2007

Remains Myanmars business center

Largest consumer market of the country, with nearly 5 mn population and

highest purchasing power in the country

Accounts for 20% of total countrys GDP

Home to a number of industrial companies

City comparison between Myanmar and Thailand shows a much higher population density in Thailand cities.
For a comparable population size (61 Mn vs. 65Mn), Myanmar inhabitants are more spread in rural areas.

Yangon
Mandalay

Myanmars 10
Most Densely
Populated
Regions, 000
Inhabitants
(2011)

998

Mawlamyine

482

11,574

Nakhon Ratchasima

1,322

Naypyitaw

2,829

Khon Kaen

1,896

Ubon Ratchathani

1,878

Nakhon Si Thammarat

1,749

Buriram

1,659

Udon Thani

1,636

Chiang Mai

1,605

Bago

266

Pthein

258

Monywa

199

Meiktila

194

Sittwe

194

Sisaket

1,546

Mergul

190

Songkhla

1,479

Bangkok & Vicinities

4,889

1,500

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Total Country
Population: 61Mn

3,000

4,500

6,000

Source: Encyclopedia Britannica, ADB

Thailands 10
Most Densely
Populated States
/ Regions, 000
Inhabitants
(2011)
Total Country
Population: 61Mn

1,500 3,000 4,500 6,000 7,500 9,000 10,50012,00013,500

TO SUPPORT ROBUST ECONOMIC GROWTH AND

POPULATION, MYANMAR HAS BEEN EXTENDING ITS
ROAD LENGTH AT ~6% BETWEEN 2004 - 2012
According to the National Transport Policy, there will be 36 new roads from North-South and 49 new roads from East-West, across 7
regions and 7 states by 2030. For the existing roads, there will be extensions and upgrades mostly running from North-South

Myanmars road length (000 Km)

8 year growth average is 6.37%

160
140

148,690 Km

120

Road length for the whole

country as of 2012

100

456

80
60

People/Km.

40

Population/road length
ratio as of 2012

20
0

2004

2005

2006

2007

2008

2009

2010

2011

2012

Key barriers

No clear lines of responsibilities: there are many ministries involved i.e.. Ministry of Transport,

Vehicles/ Km.

Ministry of Construction, Ministry for Progress of Boarder Areas and National Races and

Vehicles / road length

Development Affairs.

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ratio as of 2012

Budget constraint: Remote areas with typically mountainous terrain and sparsely population
make construction costs remain high for Myanmar.

Source: ADB, Ministry of Construction

and Solidiance

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MOST ROADS IN MYANMAR ARE UNPAVED,

HIGHLIGHTING THE NEED FOR MORE
INVESTMENT IN INFRASTRUCTURE

City roads Yangon

Highway Yangon Bago

Inter-state roads Chin

Unpaved rural roads

79% vs 21%

the proportion between unpaved roads

and paved roads, as of 2011

Paved
roads

21%

Note: Paved roads include concrete and asphalt roads. Myanmar is made
up of 135 national ethnicities, of which the main national ethnicities are

Unpaved roads

Kachin, Kayah, Kayin, Chin, Bamar, Mon, Rakhine and Shan.

79%
Source: ADB, Ministry of Construction and Solidiance

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Transportation

in Myanmar cities

Completion of the citys truck

terminals in February will increase
commercial vehicle traffic

Mandalay

Few vehicles and barely

congestion

Main road to Yangon:

2-lanes that are heavily
covered in potholes

Many roads are still under

construction

Completed new streets

are wide and straight

Nay Pyi Taw

Yangon

Rapidly increasing number of

vehicles and traffic congestion

Main roads often in poor condition

Residents rely on public transport,

which is inadequate

Most inter-city buses operate out

of Aung Mingalar Terminal, outside
of the city

Mawlamyine

Thanlwin bridge links the

southeastern region with Yangon

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MYANMARS Automotive
Market Overview

12

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Changes in import regulation

Car brands in the market

Growth drivers and barriers

Regulatory

R E F O R M S H AV E A LLOW E D E A C H
M YA NM A R C I T I Z E N T O IMP O R T 1
PA S S E N G E R C A R S IN C E 2012

Before 1998

Western countries applied sanctions against Myanmar, banning car imports.

1998-2010
Imported cars were only available for government authorities, NGOs, and foreign embassies in Myanmar

Imported passenger cars were fewer than 500 units a year.

Imports of commercial vehicle were strictly controlled. Imports for commercial purpose were not allowed. For
example, a mining company that planned to import a truck for carrying out business, had to submit a request letter
and sought approval from Ministry of Mining and Directorate of Trade.

2010 Sep 2011

Opening imports for certain types of commercial vehicles:

Imports for commercial purpose were allowed for: Trucks over 3 tons, passenger buses with more than 15 seats,
heavy equipment.

Sep 2011 May 2012

A breakthrough rule for imported car market was passed.

The Old Car Substitution Program allowed application of permits for importing cars to replace older cars which
were 20-40 years old, for newer models that were manufactured after 1995.

May 2012 May 2013

Any Myanmar citizen aged 18 years-old and older could import 1 passenger car under his/her own name (for personal
use only). Meanwhile, imported passenger cars for commercial purpose were still limited.

May 2013 until today

The government allows individuals or companies to import light trucks less than 3 tons, lifting limits on imports of any
kind of commercial vehicle for commercial purpose.

Source: solidiance interview & analysis, Myanmar Times, Myanmar Ministry of Transport

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l eadin g t o a rise in vehic l e o w nership

w ith A l m o st 4 mil l i o n vehic l es bein g
registered in mya nmar as o f J u ly 2013
All local production is Semi Knocked-down (SKD) assembly, and takes up less than 10% of new annual sales. The rest are Complete Built Up (CBU)
imports.
The government monopolies local car production. The Ministry of Industry (MOI) operates 3 factories in Myanmar and remains the only Original
Equipment Manufacturer or OEM that manufactures cars with certain scale in the country. There were total 8,500 vehicles produced from 2008
to 2012 with about half of the vehicles were built in the last 2 years. The auto brands manufactured under governmental joint ventures (JVs) are
Chery in majority, and a few Tata and Isuzu.
Other smaller scale auto producers include Super Seven Star Motor Company, whose production was controlled and reduced to fewer than 100
per month after 2011 by the government. Suzuki, a former JV with government between 1998-2008, produced 4,800 vehicles back then. The
government cancelled Suzukis investment permit in 2008, stopping its production altogether. In May 2013, Suzuki announced that it resumed
its car production under its 100% owned entity, with a target of around 1,000 units per year, making it the very first foreign-owned producer in the
local market.

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Vehicles import proportion, 2013

Thailands vehicles production

by sales, 2013

Locally
produced
cars , 8%

Locally
produced
cars, 54%

Imported
cars, 92%

Export
Sales, 46%

Source: MIDC, Solidiance interviews, Ministry of Transport

Almost all cars sold in Myanmar are imported (mostly from Japan), only 8% are locally produced, so import laws have a very
strong impact on car sales in the country. Market dynamics are very different in Thailand where most of cars sold are locally
produced, and a great share of local production is exported overseas.

3,838,206 KM

318,397

Road length for the whole country as of

2012

Passenger cars in total registered until

July 2013

3,302,692

117,842

Motorcycles registered until July 2013

Commercial vehicles registered until

July 2013

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MYANMARs

V ehic l e imp o rts are d o mi n ated by Passe n ger

cars , w ith seda n s acc o u n ti n g f o r A l m o st
ha l f o f the car imp o rts
Previously in Myanmar, imported cars were only accessible for government officials and NGOs. It
is not until recently that the government introduced Old Car Substitution Plan in Sep 2011. The
car imports market has witnessed a real breakthrough imported cars have become accessible to
individuals and businesses.

15%

10%

5%

Estimated imported car

sales breakdown
By car brands (Apr. 2013)

65%

Of imported car segment is dominated

by Toyota brands, both left hand drive
(LHD) and right hand drive (RHD) cars
covering almost all variety of models.

2%

Source : Solidiance interviews

16

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2%

Others

1%

IMPORTED

car sales breakdown By car type

(ESTIMATED, 2013)
7%

10%

1%

1%
20%

SUv/MPv

92%

45%

Sedan

25%

Hatchback

Source : Solidiance interviews

The car segment has 4 types:

Passenger cars including hatchback, van, sedan

Commercial vehicles including light truck, heavy truck, pick-up

Passenger buses

Others including tractors, trawlergyi, etc
.

159,457

units imported from Oct 2011 to

Apr 2013 (cars, trucks, buses)

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IN TERMS OF BRANDS, MYANMAR CONSUMERS

PREFER JAPANESE CAR MAKERS ESPECIALLY
TOYOTA WHICH PERCEIVED TO HAVE HIGH
DURABILITY
The share of Chinese imported cars is increasing because they are more affordable and are brand new cars
although they are manual gears, not automatic ones. Imported Japanese cars are mostly second-hand ones
whose prices are double than Chinese cars but still much cheaper than U.S. cars. Other sources of imported
cars include Germany, Taiwan, etc.

Breakdown of Cars in Circulation

by Country of Origin (2013)

US
5%
China
5%

Breakdown of Cars in Circulation

by Japanese Brands (2013)

Other
countries
10%
Nissan
10%

Suzuki
5%

Others
5%

Toyota
80%

Japan
80%

30.6 US cars
Myanmars Price of Imported Cars
by Country of Origin
12.2 Japanese cars

Toyota cars are popular in Myanmar because of their

durability, as the road infrastructures in most parts of
the country are still poor and inadequate for car transportation, especially in the rural areas.

6.6 Chinese cars

Source: Road Transfer Administration Department
(under Ministry of Transportation)

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10

20

30

40

regulatory
REFORMS AND EASING IMPORT
RESTRICTIONS WHICH CREATE
MORE DRIVERS ARE THE KEY
TO GROWTH OF MYANMAR
AUTOMOTIVE INDUSTRY
Growth Drivers

Rules & regulations for liberalizing car imports:

Relaxing import permits policy through the launch of Old Car Substitution
Program. Exemption of import permit application for cars produced in
2007 or after.

Decrease in imported car prices:

Although car prices remain higher than those in neighboring countries,
prices have tumbled by nearly 30% since July 2012 when the government
allowed all citizens to import vehicles manufactured in 2007 or later.

A cut on taxes for automobile, gasoline, diesel oil, auto spare parts
and accessories:
Cars with smaller engines and manufactured after 2007 enjoy the most
from recent tax cut; Taxes on gasoline and diesel oil have been reduced
to 10% from 170% and 90% respectively.

Newly opened, unsaturated market for international auto & auto-part

manufacturers:
Myanmar is unable to manufacture auto and auto-parts with high
standards and in large quantity, to cater to the rising demand.

Infrastructure and road upgrading projects :

The government forecasts that the transportation sector will grow by
22.5% over the next 3 years.

Increasing trade volume with neighboring countries under AEC

(ASEAN Economic Community)
2015 will fully come into effect, signifying higher usage of commercial
vehicles in the future.

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Growth Barriers

Low Income for Majority of Population:

Automobiles are still confined to few wealthiest households in Myanmar.
The country has the lowest car ownership number in Southeast Asia with
only 6 automobiles per 1,000 people.

Political risk & unpredictable regulatory changes,

making it difficult for foreign vehicle manufacturers to invest in Myanmar
and have guarantee on investment benefits.

Lack of technology & skilled engineers:

Domestic manufacturers are not ready to produce vehicles in large
commercial scale due to lack of technology. There is a shortage of skilled
engineers in car manufacturing industry as 70% of labor force remains in
the agriculture sector.

Unstable power supply, poor road and financial infrastructure,

hindering the international auto and auto-part makers to enter into the
market.

Source: Soldiance Research and Analysis, Irrawaddy, Eleven Myanmar, Bangkok Post

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Automotive Lubricant
Products in Myanmar

Key product grades in the market

Usage behavior

Purchasing behavior

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TYPES OF AUTOMOTIVE

L U B R I C A N T S AVA I L A B L E I N M YA N M A R

Automotive
Lubricants

Mineral

Synthetic

Fully
Synthetic

Key fast moving grades

Multi - grade

Mono - grade

Fully Synthetic

Semi - synthetic

Multi grade

Mono grade

API

SN or SN/CF

SN or SM/CF

SG or SL/CF or SM/CF

SF or SC/CC

SAE

5W30 / 5W40

10W30 / 10W40

15W40 / 20W50

40 or 50

Source: Solidiance interview & analysis

22

Semi synthetic

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HOWEVER, CONSUMERS ARE UNAWARE ABOUT

THE PRODUCTS; LUBRICANT USE IN MYANMAR IS
DETERMINED BY CAR WORKSHOPS AND RETAIL SHOPS

Where to go

When to change

What grades and brands

Retail shop

Time period due: mostly every 1-3

months

Car workshop/ Service

Center

Running period due: mostly

every 5,000-10,000 Km or
every 3-5 months
Some users do not pay
attention to lube changing
until a car problem occurs

Own services/ Workshop

Time period due: mostly

every 1 month, depending on
fleet routes

How much (volume)

No product knowledge: end-users

usually do not know about which
grade to be used
Awareness of long-established
brands: end-users are familiar with
only long-established brands because
many house brands are available
in the market and they appear on a
regular basis
Retailers push for a brand : retailers
usually would push for the brands
by offering attractive promotions to
end- users

Standard package size

1 Litre pack

No product knowledge: end-users

usually do not know about which
grade is to be used
Awareness of Western brands: endusers have heard of US & EU brands
and some Asian brands
Workshops recommend product and
brand: workshops usually recommend
products and brands that they trust
and offer promotions that match with
end-user budget

Standard package size

4 -5 Litres pack: for car using
gasoline

6 Litres pack: for diesel car

Little product knowledge: end-users

usually know about grade to be used
based on past experiences
Awareness of long-established
brands: end-users are familiar with
only long-established brands
Suppliers bid for the tender : Usually,
a large operator buys products
via tender. Brands with long-term
relationship normally will win the
projects

Drum size

200 Litres pack

Source: Solidiance interview & analysis

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Consequently,

it is imperative t o e n gage l o ca l imp o rters t o market

aut o m o tive l ubrica n ts i n mya n mar
There are two types of value chain: B2C and B2B. The majority of lubricant players are in B2C business because the market size is
big. All players have local importers to market products and many importers have wholesalers to distribute the products, particularly
outside Yangon. In both B2C and B2B chains, sellers are highly influential on consumers decision because end-users are lacking
awareness about lubricants.

B2C Value Chain: Private vehicles (as of 2013)

~3.5 million vehicles

Importer/
Distributor

Wholesaler

Car workshop/
Service center

Lubricant
Retail shop

End-user

Importer/
Distributor
Wholesaler

(outside Yangon)

Fleet Operator

Business
End-user

B2B Value Chain: Commercial vehicles

(as of 2013)

~100,000 vehicles
Source: Solidiance interviews & analysis

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MOST
STAKEHOLDERS

M A K E D E C I S I ON T O P U R C H A S E B A S E D
ON P R I C E A N D I N C E N T I V E S R AT H E R
T H A N LOO K I N G AT B R A N D A N D
QUALITY

Stakeholder

Estimated
number of players

Price
Brand
Quality

Decision maker :

Wholesalers deal with many brands. They have the
power to set prices for retailers

Wholesalers are mainly located outside Yangon

1.
2.
3.

Profit margin
Promotion
Brand

1000+

Decision maker :

Retailers can influence end-users choice of brands.
Usually, retailers carry many brands and push certain
brands that give them high profit margin

Retailers also provide lube-changing service to
end-user

1.
2.
3.

Profit margin
Promotion
Brand

300+

Decision maker :

Car workshops including car-care services carry a
few well-known brands and prescribe the brands to
end-users

1.
2.
3.

Brand
Quality
Price

User :

Most end-users are sensitive to prices and promotions.
Only a few car owners choose their own brands of
lubes. These customers usually own new car models
or luxury cars

1.
2.
3.

Price
Promotion
Brand

User :

Bus & Truck operators buy products directly from
suppliers while Taxi operators let the drivers choose
the products themselves

1.
2.
3.

Price
Quality
Brand

100+

Influencer :

Importers work closely with foreign suppliers in terms
of setting up marketing strategies and distributions

Wholesaler

100+

Retail shop

Car workshop/
Service center

End-user

Fleet Operator

Purchase criteria
1.
2.
3.

Importer/ Distributor

B2C

B2B

Role and Responsibility

> 3.5 million

100+

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10

Business Brochure

Myanmars Automotive
Lubricants Market

26

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Automotive lubricant sector

Market size and share

automotive

l ubrica n t acc o u n ts f o r 65% o f t o ta l

l ubrica n t c o n sumpti o n in mya nmar ,
makin g it a l ucrative target segme n t
Lubricant consumption volume by sector (2013)

5%
Automotive
30%

Industrial
65%

~ 52 million Litres
Automotive lubricant includes motorcycles ,
passenger cars, and commercial vehicles

Marine
Source: Official Customs data, Solidiance interviews & analysis

Total Lubricant consumption:

Myanmar imported 78.8 million litres of lubricant in 2012 of which more than half was
consumed by automotive sector.

Importers / distributors also estimate that lubricant consumption for automotive is higher
than that for the industrial segment due to surging imports of car and motorcycle in recent
years. The industrial lubricants come only from a limited number of machines used in large
manufacturing plants and mining business.

Marine lubricants represent a small share of Myanmars lubricant market because most
marine operators change lubricants in Singapore port

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M YA NM A R s A U T O M O T I V E L U B R I C A N T S
M A R K E T V OL U M E WA S E S T IM AT E D T O R E A C H
O V E R 60 M ILL I ON L I T R E S IN 2013
Automotive lubricant market size volume from 2009-2013, CAGR +18%
70

61

60

52
42

50
40
30

36
31

20
10
0

Note: Historical data is based on lubricant official import volumes and adjusted with vehicles in circulation

2009

2010

2011

2012

2013e

Source: Solidiance interviews & analysis

Market size volume:

Imports of automotive lubricants reached around 52 million liters in 2012. This number had increased by ~60% from 2009 (based
on custom data). From 2010s, there were changes in vehicle import regulation and on registration of illegal vehicles, which had only
showed impact in 2011/2012. Imports were expected to reach 61 million litres in 2013.

28

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Buses & trucks

are the l argest c o n sumer types

w hi l e E n gi n e o i l acc o u n ts f o r ~75% o f
aut o m o tive l ubrica n t c o n sumpti o n

Automotive lubricant consumption

volume by vehicle type (2013)

Automotive lubricant consumption

volume by product type (2013)

5%
20%

Bus & Truck

45%
35%

5%

3% 2%
Engine oil
Gear oil

10%

Coolant

Motorcycle
Passenger cars
Source: Solidiance interviews & analysis

75%

Brake oil
Grease
Others

Market segment:
Buses & trucks in the B2B business are the biggest consumers of lubricants because each vehicle needs large amount of lube on a regular basis.
Although motorcycles account for 80% of vehicles that operate in Myanmars roads, motorcycles lubricant consumption only accounts for 35%
of the total market as it only needs small amount of lube.

Automotive lubricant consumption:

Engine oil represents about 75% of the automotive / two wheelers lubricant consumption. Gear oil comes second, but the product is still
substituted with detergent by car owners with small budget.

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Mid-end segment started

to emerge after 2010s,
although low-end market
remains strong driven by
the two-wheelers
While the market has been dominated by products from low-end grades, the demand
for high-end lube has been expanding due to the expected increase in demand
for new car models in line with more favorable conditions to import vehicles. This
has prompted key international players to pay more attention to the high-end lube
segment. They are seeking to increase usage of synthetic type oil by educating the
market. All players also offer various grades in the high-end lube segment.

Past segmentation

Current segmentation

Before 2010s

After 2010s

High-end
(~5-10%)

End of international sanctions

against Myanmar, easier
procedures for imports have
started to impact the market

Low-end
(~90%)

High-end
(5%)
+
Mid-end
(~35%)

Low-end
(~60%)

My service center is focusing on highend customer who can afford the premium
products from global brands. This type of
customer is a niche market where majority of
end-users particularly motorcycle still prefer
to use the low priced product.
- Managing Director, a car service center

Global, Middle East, and Asian brands now pay more attention on the synthetic types
- with local and Asian brands having been dominating this segment for decades. This
segment is mostly for motorcycle market.

Source: Solidiance interview & analysis

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ONLY 50+ OUT OF of 200+ REGISTERED LUBRICANT

BRANDS ARE PUSHING FOR MORE MARKETING AND
ADVERTISING OF HIGH-GRADE LUBE PRODUCTS
US Brands

EU Brands

Asian Brands

Low-End Local Brands

UAE :

Thailand :

Japan:
Malaysia:
Korea:

Singapore:

Ninja, Alpha, Dragon,

Rev-1, Molla, United
oil, Robot, Lucky Bell,
etc.

Malaysia:

Indonesia

Source: Ministry of Commerce and Solidiance interviews & analysis

Ministry of Commerce have registered 209 of both international and local house brands - all of which are imported products. For local
brands, Myanmar companies imports lubricants in bulk from overseas to be later repackaged and re-branded under their own name,
generally categorized as low-end lubes. It is estimated that around 50+ brands are currently active and have on-going marketing activities
in the market.

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31

FALCON AND TRADE HAVE BEEN

DOMINATING MYANMAR LUBRICANT
MARKET FOR DECADES
Total Market Share in 2012 for all vehicles
(with total market size in vol = 52 million litres)

12%
21%

Falcon
10%

brands

PTT

Other
brands

Tip

ic
ta
Toyo

sm

Cal

tex

4%

5%

6%

4%

Kixx

El

llio

3%

8%

To

Sta

2%
2%

l
ta
To sa
Na

Co

12%

Trane

6%

5%

Market share:
Falcon is the leader in overall market, thanks to its strong presence in motorcycles and commercial
cars. This brand is a household name especially outside Yangon. Trane is trailing second and has
been strong in the passenger cars market for decades; however it is starting to lose share to other
players due to fierce competition. PTT followed after those two, yet viewed as the most aggressive
player and is expected to surpass Trane in the future.

Source: Solidiance interviews & analysis

32

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conclusion

future O P P O R T U N I T I E S A N D T R E N D S
Competition will remain strong across all segments, but increasing purchasing power
and imports of newer cars would foster further growth for the medium and high-grade
lubes. Low-end brands will continue to dominate the market as consumers are expected
to remain price-conscious for the coming years. However, it will likely lose share in the
passenger cars segment.
International and Asian brands which target medium to high-end car lubricants are
entering the market, creating fiercer competition in the segments. They will be forced
to promote their brand image, making them visible to compete in this medium to highend lubes market. As the competition increases, international brands are now seeking
partnerships with service centers and authorized dealers to exclusively distribute their
brands. Moreover, given that the brand awareness remains low, lubricant manufacturers
will push their distributors to offer more promotions and incentives to increase the
penetration and market share.
Yangon and Mandalay will remain the distribution lubricant hubs for the medium term,
while relaxing imports regulation and the increase in purchasing power will continue to
boost the number of vehicles and hence raises the demand for lubricants.

Video

Mickael Feige, our Associate Partner, shares a quick view on how the Automotive
Lubricant sector in Myanmar has been significantly changing over the last few years,
and what strategy is needed to survive in the market. Watch the video below.

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33

About us
What We Do
Soldiance is a corporate strategy consulting firm with focus on
Asia Pacific. We advise CEOs on make-or-break deals, define
new business models and accelerate Asia growth.

Through

our 10 offices across Asia, we provide our clients with a better

understanding of intrinsic regional issues. To learn more about how
Solidiance has helped many Fortune 500 & Asian Conglomerates
to succeed in Asia, please visit: http://www.solidiance.com/clients.

What We Are Focusing On

Our industry experience is centered on industrial applications,
chemicals, downstream oil, lubricants and the automotive
industry. Our Asian market entry and growth strategy services
provide the required insights and the necessary roadmap to
capture a profitable market share in the region.

Additional Details
Solidiance has offices in China, India, Indonesia, Malaysia,
Myanmar, Philippines, Singapore, Thailand, UAE and Vietnam.
We are fast expanding and always on the lookout for exceptional
people.

34

www.solidiance.com

authors
MICKAEL FEIGE - ASSOCIATE PARTNER
Mickael Feige is an Associate Partner based in Thailand. Mickael has more than 10 years of professional
experience. He manages large projects for Fortune 500 in various sectors such as automotive, chemicals,
construction, energy, heavy industries and healthcare. His expertise lies mostly in market entry, growth
strategy, industry and competitive benchmarking, and commercial problems diagnostics. Mickael speaks
French and conversational Japanese. He holds a Masters Degree from a joint program between Lyon
Political Science Institute and Senshu University. He holds an MBA from INSEAD.

NAITHY CYRIAC - SENIOR CONSULTANT

Naithy is a Senior Consultant based in our Myanmar office. With over four years of consulting experience
across a range of sectors including telecom, healthcare and construction, she has worked extensively
with MNCs exploring investment opportunities in ASEAN. Prior to joining Solidiance, Naithy was a senior
associate at a Moodys group company, where she led various consulting projects including market entry
strategy, investment opportunity analysis and competitive benchmarking. Naithy graduated with an MBA
from the National University of Singapore and participated in an exchange program at Cornell University.

MIE KO - ANALYST
Mie Ko is an Analyst based in our Myanmar office. Mie Ko worked on several projects for Solidiance in
Myanmar where she supported feasibility studies and investment projects for Fortune 500 companies.
Prior to joining our team, she worked at the Finance Department of a large hospitality group in Yangon. She
obtained her Bachelors degree of Computer Studies from the University of Computer Studies Mandalay.
Mie Ko holds an MBA with specialization in Strategic International Marketing from the Asian Institute of
Technology.

SHIN THANT - ANALYST

Shin Thant is an Analyst based in our Myanmar office and has served clients in doing market landscape
analysis and commercial due diligence. Prior to joining Solidiance, he worked as an audit and advisory
associate for KPMG on financial advisory services responsible for auditing MNCs and INGOs. With an
in-depth knowledge in accounting and engineering, Shin Thant has obtained his advanced diploma in
engineering and accounting. He is also member of Association of Chartered Certified Accountants UK
(ACCA).

www.solidiance.com

35

our offices
China

India

Indonesia

Suite 516, Fuxing Plaza

109 Yan Dang Road
Shanghai 200020
Phone: +86 2153019980

A-9, Third Avenue

Bandh Road
New Delhi
Phone: +91 9999988859

Suite 6A, 15/F, Menara Palma

Jl Rasuna Said Block X-2 Kav 6
Jakarta 12950
Phone: +62 2157957465

Malaysia

Myanmar

Philippines

5th Floor, Menara Hap Seng

Jalan P.Ramlee
Kuala Lumpur 50250
Phone: +60 320221400

4th Floor, Shwe Gon Plaza

Kabar Aye Pagoda Road
Bahan Township, Yangon
Myanmar - 11201
Phone: +95 1 556076

Unit 2105 Tycoon Centre

Pearl Drive, Ortigas Centre
Pasig City, Metro Manila
Philippines
Phone: + 63 25318346

Singapore

Thailand

UAE

Suite 07-05
High Street Centre
1 North Bridge Road
Singapore 179094
Phone: + 65 31520301

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#2109 - 21F
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Building
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www.solidiance.com

info@solidiance.com