Castrol is aiming for double-digit growth by the end of the year in Peru’s commercial and industrial lubricant market, part of a push to increase market share across Latin America.
Finished lubricant demand in Latin America has returned to pre-pandemic levels and is predicted to reach 4.1 million metric tons by year end, rising to 4.5 million t/y in 2029, according to industry consultancy Kline & Co. Peru, alongside Brazil, Mexico, Colombia and Chile are the main contributors to this trajectory.
The BP subsidiary is considering building local production capacity, establishing commercial alliances, strengthening industrial lubricant offerings, diversifying into mass segments and improving supply and distribution.
The company entered the Peruvian market 50 years ago and, now it accounts for about 10% of Castrol’s revenue from the 21 countries of Latin America. Approximately 85% of Castrol products are sold in Peru through oil-change channels, including products for cars, motorcycles and trucks.
”The region, given that it is likely to take a long time to achieve significant electrification, becomes strategic for companies like BP and Castrol over the next 20 years,” Mario Olaechea, Castrol’s director for South America, Central America and the Caribbean, told local media.