National III Implementation Brings Market Shocks to Domestic Lubricants Facing Technical Challenges

In July this year, the National III standard began to be enforced nationwide. The turbulence it brings is not only reflected in the automobile production and manufacturing industries, but also makes the lubricants, maintenance and other industries face great challenges and challenges. Faced with higher standards and more stringent requirements, the Chinese lubricants market is accelerating the survival of the fittest.

According to an international authoritative survey, by 2020, China's lubricant consumption will exceed that of the United States and become the largest market in the world. This huge market demand has triggered fierce competition in the industry. First, the number of competitors has increased. Second, lubricants manufacturers have to accept a series of challenges from environmental protection regulations, energy shortages, and technological upgrading.

The National III standard, which has been in place for more than four months, means that from the vehicle to the automotive-related products will be faced with a comprehensive upgrade. Take commercial trucks as an example. From State II to State III, the technological upgrading has an essential change. It is necessary to change the mechanical fuel injection system into an electronic control system, which is a brand-new upgrade of the engine and its emission control technology. At present, in China's lubricants market, CF-4 and below grade diesel engine oil is still widely used, but to achieve the national III emission standards, at least need to use CH-4 grade diesel engine oil. Therefore, the enforcement of the National III standard will directly lead to the elimination of CF-4 and below grades of diesel engine oil.

The market opportunity has always been reserved for those who are prepared. After the country enacted the National III standard, some companies immediately launched products that meet the requirements of the new standard. Among them, the performance of unified lubricants is particularly prominent, and its new products include gasoline engine, diesel engine and other special requirements products, leading the industry in energy saving and environmental protection. At the same time as launching new products, Lubricants also launched a roadshow in the country with the theme of “Excellent Lubrication Further” in September to promote new products and widely spread the importance and knowledge of lubricants to consumers. The road show took more than two months and covered more than 80 cities in 9 provinces including Heilongjiang, Jilin, Liao and Jin. In the recent Moore Rally of the second race of the National Automobile Rally Championship, the unified lubricants teamed up with Mitsubishi Rally Art Team to embark on the journey, demonstrating outstanding performance and quality.

The Chinese lubricants market is now experiencing technological challenges caused by intensified competition due to market expansion and international environmental and energy issues. Despite the difficulties, the tempting market made the company reluctant to give up. A war that tests the company’s strategy and overall strength is starting, and the implementation of the National III standard is precisely the reason why this campaign ignited the fuse.