THE lubricant business of Pilipinas Shell Petroleum Corp. is anticipating high growth this year on the back of the high motorcycle ownership and construction boom across the country.
Lorrie Ramirez, brand manager of Shell Advance, said they expect a surge in the sale of motorcycle oils as the two-wheeler population in the country continues to grow.
She said they are banking on the 12 to 15 percent growth in motorcycle ownership year-on-year, with owners constantly changing oil for their units.
Ramirez said there are owners who change oil for every two to six months, depending on the brand of the motorcycle and the frequency of its usage.
She identified the scooter segment as the fastest growing market for Shell’s motorcyle oil business.
Recca Menchavez, brand manager of Shell Rimula, likewise, sees a robust demand for heavy engine oil following the accelerated development in the country.
Menchavez said the construction boom which entail acquisition of additional equipment such as big trucks, translate to more product usage, particularly for heavy engine oils.
Moreover, Menchavez said, they also see the government’s transport modernization program as another growth driver. She said all these improvements in the transport sector bode well for the fuel and oil business.
Vehicle sales
The Motorcycle Development Program Participants Association (MDPPA) reported a whopping 21 percent increase in motorbikes sales in 2018.
MDPPA, which only has four member companies: Honda, Yamaha, Suzuki, and Kawasaki, identified the scooter category (automatic transmission) topping the sales chart with 577,722 units sold last year. This translates to an 18 percent increase in sales compared to the 389,168 units sold in 2017.
Meanwhile, total automotive sales for the first semester of 2019 slightly grew 1.46 percent to 174,135 units from 171,635 units compared to the same period in 2018, data from the Chamber of Automotive Manufacturers of the Philippines Inc. showed.
The passenger car segment contributed 52,418 units or 6.4 percent less than the 56,029 units in the first six months of 2018. (KOC)