USD5.4 Million worth of Engine Oils sold in Jakarta and Surabaya in One Month

Nearly 1.05 million litres of passenger car engine oil worth nearly USD5.4 million was sold in Indonesia’s major cities of Jakarta and Surabaya in the first month of 2011, according to the latest retail tracking report for passenger car engine oils from GfK Indonesia.

Approximately 1100 retail shops selling passenger car engine oil, including car garages, fast fitters, oil specialists and tire specialists are catering to the automotive industry in Jakarta and Surabaya. With three quarters of the entire market share being apportioned to car garages, findings clearly reflect the preference of general consumers to go to a one stop service point, rather than specialized outlets when replacing passenger car engine oils.

The passenger car engine oil market in Indonesia is largely divided into two main segments – organic oils, which represent a little more than half of the market (50%), closely trailed by semi synthetic car engine oil (49%). Fully synthetic oil market portion is still insignificant, accounting for slightly over one percent of the market. Competition buy zolpidem canada wise, the market shows a polarized picture among the two biggest segments—the national brand is leading in organic oil segment, while imported brands are commanding a stronger market position when it comes to semi synthetic oil.

“Seeing that both segments hold an almost equal share of the market, it is crucial for manufacturers to understand the different dynamics of organic and semi synthetic market segments in order to gain a strong presence in the overall engine oil market,” commented Mr. Guntur Sanjoyo, General Manager of GfK Indonesia. “This is especially important in big cities like Jakarta and Surabaya where the key players have more or less same distribution strength in retail level.”

The Indonesian automotive industry is shining bright with the current favorable economic conditions and improving consumer sentiments. GfK Indonesia’s retail tracking of passenger car tires sales reported a 12 percent increase in the number of aftermarket car tires sold in the last quarter of 2010 compared to the same quarter of the previous year.