Motul is stepping up its India strategy with a sharper focus on rural expansion and deeper OEM partnerships, as the country emerges as one of its top two global markets by volume. The French lubricant major is targeting a near doubling of its rural contribution, from about 9–10% currently to nearly 16% over the next two years, this will be backed by a significant expansion in its distribution network. This includes scaling up to over 800 rural distributors and adding 10,000–15,000 dealers to deepen last-mile reach.
“India is clearly among our top markets globally in terms of volume and continues to be one of the fastest-growing regions for us. Rural markets represent a structural opportunity, not just for volumes, but for building long-term brand equity in underpenetrated regions,” said Nagendra Pai, CEO, Motul India and South Asia.
Driving Growth
Motul’s India business has been growing at nearly three times the industry rate of 4–6%, driven by rising demand for premium and performance-oriented lubricants. The company expects this outperformance to sustain over the next three to five years, supported by distribution expansion, product innovation and strategic partnerships.
OEM collaborations, while contributing around 8–10% of overall revenues, are becoming increasingly important. “OEM partnerships are strategically important as powertrain technologies evolve. We are working closely with leading manufacturers to bring locally adapted solutions to the Indian market,” Pai said. Motul is working with manufacturers such as Bajaj Auto, Suzuki Motorcycle India, Yamaha Motor India and Mercedes-Benz India, even as it continues to rely on its aftermarket-led model, which accounts for over 90% of its business and supports stronger margins through brand-led demand and pricing flexibility.
Shift to Premiumisation
Another key factor, premiumisation, remains central to Motul’s India strategy. Nearly a quarter of its revenues now come from synthetic lubricants, thanks to the shift towards higher-capacity motorcycles and more feature-rich passenger vehicles. “Consumers are increasingly prioritising performance, durability and engine protection, which is accelerating the shift towards synthetic products,” Pai added. The passenger car engine oil segment, contributing 10–12% of revenues, has also seen volumes double over the past two years.