SK Enmove entered into a joint venture with auto parts maker Gabriel India to distribute the Korean company’s range of automotive lubricants and gain access to one of the fastest-growing vehicle markets in the world.
The country produced 5.1 million passenger cars, 24.3 million motorcycles and 1.1 million commercial vehicles in 2024, according to the Society of Indian Automobile Manufacturers. Forecasts suggest annual growth of about 4% by 2030, which will drive lubricant demand as manufacturers and suppliers expand production capacity and adapt to the country’s evolving vehicle mix.
The deal was announced Thursday and sets out SK Enmove’s stake at 51% and Gabriel India’s at 49%.
“The agreement is in line with company strategy to strengthen presence in the Indian engine oil market and long-term value creation in the mobility solutions market,” Gilbert Kim, SK Enmove’s spokesman, told Lube Report. “It will not impact Yubase supply, logistics or existing commercial arrangements with any current customers.”
The new JV will use SK Enmove’s finished lubricants trademark Zic, Kim added.
One market analyst Lube Report spoke to thinks the JV opens the company to nationwide distribution where previously it wasn’t able to sign up distributors in all states.
“You have to market to the end user through the distributors and retailers. SK doesn’t really do that,” the analyst who preferred to remain anonymous, told Lube Report. “You have to invest in brand and incentive schemes to be able to grow in the Indian market.”