Expert Tips for Starting an Automotive Oil and Lubricant Retail Business for Distributors

Vietnamese automobile purchasing power continues to grow strongly in recent times. Vietnam's automotive market sales in April 2022 reached 51,745 vehicles (VN Express). This is the result of the registration tax reduction effect of up to 50% for domestically assembled vehicles, extending through May 2022. From this point forward, the automotive lubricant business market has also become an extremely promising sector, alongside lubricants for motorcycles and scooters.

Facing this upward market trend, doors are wide open for individuals and enterprises looking to start their business ventures or enter a new sub-sector. If you're still uncertain about where to begin, this article is exactly the lifeline you need.

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Automotive lubricant business is the hot sector today

1. Positive data on automobile consumption in Vietnam

Based on the above figures, it is estimated that every minute, one person purchases a vehicle, regardless of price. Compared to December 2021 with only around 35,500 vehicles, this number has increased by over 45%.

This demonstrates that automobile consumption in Vietnam is increasing day by day. This is a growth period for the automobile market and opens major opportunities for automotive lubricants. The expanding market share allows new entrants to penetrate the automotive lubricant market.

Although this figure is only one-sixth of the motorcycle market, following the difficult pandemic period and tight supply constraints, this is a very positive signal at present.

2. Advantages and challenges of opening an automotive lubricant store

2.1. Advantages

• Store opening costs: Suppliers support expenses for store decoration. If you already have a location, you can skip these costs. Most expenses will focus on initial product inventory.
• Reliable supply sources: When partnering with large and reputable companies (such as Huynh Chau lubricants,...), you will receive reliable, quality products at very competitive and stable automotive lubricant prices. Despite complex market fluctuations, Huynh Chau maintains the best prices for customers.
• Easy expansion: The development potential in the current automobile and lubricant market is wide open. Especially when partnering with