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India Automotive Coolant Market Size (2024 - 2029)

The India Automotive Coolant Market is experiencing growth driven by increasing vehicle demand and the resumption of manufacturing activities post-COVID-19. The market's expansion is supported by government incentives for original equipment manufacturers and significant investments from global OEMs to establish production facilities in India. The rising average age of vehicles on the road further contributes to the market's growth. While ethylene glycol remains the most commonly used coolant, the industry is shifting towards less toxic alternatives. The passenger cars segment is anticipated to grow rapidly due to the high demand for automobiles in the country.

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Market Size of India Automotive Coolant Industry

India Automotive Coolant Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 113.94 Billion
Market Size (2029) USD 173.87 Billion
CAGR (2024 - 2029) 8.82 %
Market Concentration High

Major Players

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*Disclaimer: Major Players sorted in no particular order

India Automotive Coolant Market Analysis

The India Automotive Coolant Market size is estimated at USD 113.94 billion in 2024, and is expected to reach USD 173.87 billion by 2029, growing at a CAGR of 8.82% during the forecast period (2024-2029).

  • 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 Industry Segmentation

Coolant plays three crucial functions in a vehicle. Firstly, it efficiently transfers combustion heat from the engine to the radiator, where it is released into the atmosphere. Secondly, it offers sufficient protection against freezing and boiling. Lastly, it safeguards the engine and cooling system metals from rust and corrosion, ensuring optimal performance and longevity.

The Indian automotive coolant market is segmented by vehicle type (passenger cars and commercial vehicles) and chemical type (ethylene glycol and propylene glycol). 

The report offers market size and forecasts in value (USD) for the above-mentioned segments.

Vehicle Type
Passenger Cars
Commercial Vehicles
Chemical Type
Ethylene Glycol
Propylene Glycol
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India Automotive Coolant Market Size Summary

The India Automotive Coolant Market is poised for significant growth over the forecast period, driven by a resurgence in automotive demand and manufacturing activities following the COVID-19 pandemic. The market is benefiting from increased consumer interest in vehicles and government initiatives like the Make in India program, which encourages global original equipment manufacturers (OEMs) to invest in local production facilities. This influx of investment is further supported by favorable foreign direct investment (FDI) policies, allowing for 100% FDI under the automatic route. The growing average age of vehicles on the road also contributes to the rising demand for automotive coolants, with ethylene glycol being the most commonly used despite its toxicity concerns. The passenger car segment, in particular, is expected to experience robust growth due to the high demand for cars in the country.

The competitive landscape of the automotive coolant market in India is characterized by a high intensity of rivalry, with both domestic and international players vying for market share. Major companies such as Indian Oil Corp., Castrol, Exxon Mobil, and Valvoline are key players in this space, alongside OEMs like Audi, BMW, VW, and Suzuki, which offer coolants under their own brands. The market is also witnessing strategic investments and developments, such as ExxonMobil's decision to establish a lubricant blending plant in India and Shell Lubricants' launch of e-thermal fluids for electric vehicles. These developments, coupled with the increasing adoption of ethylene glycol-based coolants due to their cost advantages, are expected to drive the market's growth trajectory in the coming years.

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India Automotive Coolant Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing Vehicle Production

    2. 1.2 Market Restraints

      1. 1.2.1 Increasing Environmental Concerns and Regulations

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Vehicle Type

      1. 2.1.1 Passenger Cars

      2. 2.1.2 Commercial Vehicles

    2. 2.2 Chemical Type

      1. 2.2.1 Ethylene Glycol

      2. 2.2.2 Propylene Glycol

India Automotive Coolant Market Size FAQs

The India Automotive Coolant Market size is expected to reach USD 113.94 billion in 2024 and grow at a CAGR of 8.82% to reach USD 173.87 billion by 2029.

In 2024, the India Automotive Coolant Market size is expected to reach USD 113.94 billion.

India Automotive Coolant Market Report Snapshots

India Automotive Coolant Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)