Trouble or Rescue: Russia Waits for a Flood of Chinese Motor Oils
- November 3, 2022
- 0
We are already used to Chinese car parts, tires and even cars in general, but for some reason we have not seen motor oils from China on the
We are already used to Chinese car parts, tires and even cars in general, but for some reason we have not seen motor oils from China on the shelves and in barrels at gas stations before. But it seems that we will see soon – there are very serious conditions for that. And is it good or bad for car owners, explains the AvtoVzglyad portal.
In February, the Russian motor oil market suffered a deep hole: imports stopped, local production under the banner of leading companies began to rapidly wind down and a thin stream of “parallel imports” could not meet the huge demand. Domestic manufacturers, out of old habit, decided not to join the fight for the consumer’s wallet and offered “tasty” conditions, but on the contrary, they increased prices. Strike the iron while it is hot. And so far there is no competition.
So the market was empty and the Turks were the first to react to this event. Nevertheless, our country is in fourth place in the world in terms of engine oil consumption. They have enough brands and factories, and the established – most likely temporary, but who cares – forced union opened the doors to Russia for the heirs of the Ottoman Empire. New products flooded into our Immesurable and immediately filled not only the shelves, but entire stores. It’s just the beginning!
However, Russia’s most important partner at the moment is China – its export-import relations are growing by leaps and bounds. Xi Jinping remains at the helm of the Chinese Communist Party, so this trend will continue. But something else is more important: Europe’s largest manufacturing facilities are moving to the heavenly realm, from where they will no doubt start floating goods in echelons to Russia. And one of them will probably be the famous German concern BASF.
Martin Brudermüller, CEO of BASF, recently said that the group plans to reduce its production in Europe due to the stagnation of the regional market, excessive over-regulation by the authorities and a monstrous increase in gas prices. In 2022, the company paid 2.2 billion euros too much for “blue fuel”. So now the cost has to be reduced – by 10% or 500 million in cash.
At the same time, BASF, a major producer of base oils and hundreds of other automotive chemicals, is beginning to expand and invest heavily in its operations in China. Especially in the mega complex in Zhanjiang, in the south of China. The Germans plan to invest 10 billion euros in this super factory, which should become one of the three largest by 2030. Investing in China is profitable: both the domestic market is growing and the pipeline comes from Russia.
And when oils, additives and other products based on BASF appear on the Chinese “menu” – base oil makes up about 70% of what we buy in a jerry can and pour into the engine – then a new, very attractive product enters the market. house market. It will not only compete with Russian brands, but also easily occupy those niches that have become vacant after the departure of leading foreign suppliers. Checkers are good, of course, but we have to go.
Photo: forbes.com
In February, the Russian motor oil market suffered a deep hole: imports stopped, local production under the banner of leading companies began to wind down rapidly and a thin stream of “parallel imports” could not meet the huge demand. Domestic manufacturers, out of old habit, decided not to join the fight for the consumer’s wallet and offered “tasty” conditions, but on the contrary, they increased prices. Strike the iron while it is hot. And so far there is no competition.
So the market was empty and the Turks were the first to react to this event. Nevertheless, our country is in fourth place in the world in terms of engine oil consumption. They have enough brands and factories, and the established – most likely temporary, but who cares – forced union opened the doors to Russia for the heirs of the Ottoman Empire. New products flooded into our Immesurable and immediately filled not only the shelves, but entire stores. It’s just the beginning!
However, Russia’s most important partner at the moment is China – its export-import relations are growing by leaps and bounds. Xi Jinping remains at the helm of the Chinese Communist Party, so this trend will continue. But something else is more important: Europe’s largest manufacturing facilities are moving to the heavenly realm, from where they will no doubt start floating goods in echelons to Russia. And one of them will probably be the famous German concern BASF.
Martin Brudermüller, CEO of BASF, recently said that the group plans to reduce its production in Europe due to the stagnation of the regional market, excessive over-regulation by the authorities and a monstrous increase in gas prices. In 2022, the company paid 2.2 billion euros too much for “blue fuel”. So now the cost has to be reduced – by 10% or 500 million in cash.
At the same time, BASF, a major producer of base oils and hundreds of other automotive chemicals, is beginning to expand and invest heavily in its operations in China. Especially in the mega complex in Zhanjiang, in the south of China. The Germans plan to invest 10 billion euros in this super factory, which should become one of the three largest by 2030. Investing in China is profitable: both the domestic market is growing and the pipeline comes from Russia.
And when oils, additives and other products based on BASF appear on the Chinese “menu” – base oil makes up about 70% of what we buy in a jerry can and pour into the engine – then a new, very attractive product enters the market. house market. It will not only compete with Russian brands, but also easily occupy those niches that have become vacant after the departure of leading foreign suppliers. Checkers are good, of course, but we have to go.
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
