The rising popularity of electric vehicles (EVs) may lead to significant changes in the automotive industry, including the lubricants oil market, according to Haytham Yehia, General Manager, Shell Lubricants Middle East and Central Asia.
In an exclusive interview with PMV Middle East, Yehia, an engineer by training and Egyptian by origin, said electrification is one of the key trends in the automotive industry.
The overall split of the lubricant demand, broadly speaking, can be divided into two or three major components.
The first one is the B2B industrial sector, which is much more resilient or dependent on the current solutions in the medium to long term. If you look at the current industrial sector, demand is likely to remain strong as the industry expands to meet the demand from the rising population. As industry needs to satisfy the growing needs of the rising population, both on a regional and global level.
“So we believe that this part of the business will keep growing in the near future,”Yehia said.
He revealed, “The second one is the automotive sector, which is the sector where we may see the impact of electrification in near future. The introduction of electric vehicles has gained momentum across the world, and in some parts of the world, particularly in European countries, the market for base oil has already started shrinking.”
According to him, the lubricants industry will be supported in the short term by increased sales of internal combustion engine automobiles in emerging markets such as China, the Middle East, and India.
“But over the course of the next few years, we might witness a decline in business. And that’s where new fashion trends will emerge,” he said.
Following the increase in electric vehicles (EVs), One of the most significant areas of change is the rise of e-fluid applications, which are essential for ensuring the reliable and efficient operation of EVs.
E-fluids are specialised fluids that are used in electric powertrains, including transmissions, differentials, and other components.
They are essential to keeping EVs reliable and efficient. These fluids play a critical role in protecting components from wear and tear, reducing friction, and maintaining optimal performance. However, the development of e-fluids presents several challenges and opportunities for the base oil market, he said.
Yehia explained Shell has been working closely with automotive and component manufacturers to engineer these “first fill” fluids that effectively and efficiently meet a broad range of battery EV performance requirements. These products are targeted at the growing number of automotive manufacturers that are building EVs.
On sustainability, he said, “As part of our overall vision and strategy to become a net-zero emissions energy business by 2050 in step with society and our customers, we will keep introducing products to the industry which will ultimately allow end-users to lower their carbon footprint generated from operations.”