The Big Picture: Why Northern Automotive Lubricant Distributors Are Expanding Their Motor Oil Business

Nowadays, there are increasingly more automotive lubricant distributors appearing nationwide, supplying products from renowned brands such as Amsoil and Motul. However, Northern Vietnam, particularly Hanoi, remains the most promising market for several reasons. Discover the reasons behind why Northern distributors should strengthen their automotive lubricant business and the secrets to succeeding with this product in the following article!

See more:

• What do you need to know before starting an automotive lubricant retail business?
• Starting an automotive lubricant distributor business in Northern Vietnam with Huynh Chau NPP with minimal capital

Why are Northern distributors strengthening their automotive lubricant business?

1. Northern provinces have the highest per capita automobile ownership rate in the country

Currently, Vietnam remains the land of opportunity for motorcycles. Despite the impact of Covid-19, the consumption of these vehicles still shows positive growth, declining only partially compared to the previous period: 2,712,615 units (down 17% compared to the same period in 2019, according to data from the Vietnam Motorcycle Manufacturers Association).

However, in that context, automobile revenue also showed promising development, especially in early 2021 when the pandemic had been basically controlled. The Vietnam Register Department reported that the number of automobiles in circulation in the 12/2020 period exceeded 4 million units - a positive signal for manufacturers. The developing automobile market also drives the development of engine maintenance products, specifically lubricating oil.

See more: Best synthetic oil for automobile engines

Increasingly more Vietnamese people own automobiles

However, according to statistics from the General Statistics Office (2020), the region with the highest rate of automobile ownership is the Red River Delta (7.5%). Meanwhile, Southern Vietnam has much lower rates. Specifically, the Mekong River Delta has only 2.5% of families owning automobiles.

Provinces with the highest automobile ownership rates include Hanoi, Quang Ninh, Vinh Phuc, and others. Therefore, it is not surprising that more people are choosing to become automotive lubricant distributors in Hanoi.

2. Which lubricant should you sell?

As the market develops, competition intensifies, especially for essential products like lubricating oil. So if you're just starting an automotive lubricant business, what should you do?

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