India Car Coolant Market

India Automotive Coolant Market Analysis

The India Automotive Coolant Market size is estimated at USD 123.99 billion in 2025, and is expected to reach USD 189.20 billion by 2030, at a CAGR of 8.82% during the forecast period (2025-2030).

• The COVID-19 outbreak impacted the market negatively, as the demand for automobiles during the lockdown period declined to almost zero for the first time. The production of vehicles was also halted in order to maintain the social distancing norms and prevent the spread of the virus. However, with the rising consumer demand for automobiles, combined with the restart of manufacturing activity, has resulted in a resurgence in the automotive coolant industry.
• With the growing demand for vehicles and government incentives to original equipment manufacturers (OEMs) to promote the Make in India initiative, several OEMs from across the world are investing heavily in the country to set up their production units to meet the local and global demand. The other factor acting as a market driver is the increasing average age of vehicles on the road.
• Ethylene glycol is the most preferred automotive coolant. However, it is highly toxic and requires careful disposal. Therefore, the coolant industry began manufacturing less toxic coolants. The passenger cars segment is expected to grow at a high rate due to the high demand for cars in the country.

India Automotive Coolant Market Trends

Increasing Investment in the Automobile Sector in the Country

• In order to keep up with the growing demand, several automakers have started investing heavily in various segments of the industry during the last few years. With the FDI policy for the automobile sector allowing 100% foreign domestic investment (FDI) under the automatic route, FDI equity inflows in the automobile industry are increasing at a high rate.
• Several global original equipment manufacturers (OEMs) are investing in the country either through joint ventures with established players or, after the relaxation of FDI norms, investing directly in setting up their own production units or enhancing the sales and dealership networks across the country. Some of the recent/planned investments and developments in the automobile sector in India are as follows:
• In February 2022, the government received an investment proposal worth INR 45,016 crores (USD 6.04 billion) from 20 automotive companies under the PLI Auto scheme. This scheme is expected to create an incremental output of INR 2,31,500 crore (USD 31.08 billion).
• The Indian government has outlined USD 7.8 billion for the automobile and auto component sector in Production-Linked Incentive (PLI) schemes under the Department of Heavy Industries.
• With the growing investments in the automotive sector, the production of automobiles in the country is expected to ramp up to meet the growing demand. The trend is expected to continue during the forecast period.

Ethylene Glycol Segment Captures the Largest Market Share

• Ethylene glycol is a toxic material that can lead to birth defects, reproductive damage, or even death. Thus, it requires very careful handling.
• It has many commercial and industrial applications, including anti-freeze and coolant. It prevents the car's engine from freezing in the winter and acts as a coolant to reduce overheating. Some of the ethylene glycol-based coolants available in India are:
• The Wuerth anti-freeze coolant is being adopted in Indian, Japanese, American, European, and Korean vehicles by various automakers. The color of the oil is green, and it is ethylene glycol based.
• The Euroils Euro Turbo Cool Coolant Concentrate Green with ethylene glycol base makes it ideal for radiators. The oil has an oil-to-water dilution ratio of 1:2. With the increasing adoption of ethylene glycol-based coolants in automobiles due to its cost advantage over propylene glycol, the segment is expected to grow at a high rate.

India Automotive Coolant Industry Overview

The intensity of competitive rivalry is high due to the presence of domestic and international players in the market. Some of the major players in the automotive coolant market include India Oil Corp., Castrol, Exxon Mobil, and Valvoline. Additionally, some OEMs, like Audi, BMW, VW, and Suzuki, supply coolants under their own brands, further impacting the competitive landscape. For instance, India's largest passenger carmaker, Maruti Suzuki India (MSIL), launched Ecstar, Suzuki's global brand of lubricants, coolants, and car care products in the country.

India Automotive Coolant Market Leaders

India Automotive Coolant Market News

• March 2023: ExxonMobil decided to build its first lubricant blending plant in India to meet the augmenting demand.
• August 2022: Shell Inc.'s subsidiary Shell Lubricants announced the launch of e-thermal fluids for electric vehicles in India.