New Cars, Better Oils for Russia

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Driven by an influx of foreign cars, Russia’s demand for high-quality lubes has steadily increased since 2005, while stringent emission-reduction standards have resulted in development of a new generation of lube additives.

Russia had 44 million vehicles in 2012, including nearly 37 million passenger cars, according to Moscow-based consultancy Autostat. Over 70 percent of the fleet is concentrated in the European part of the country, while almost 30 percent of it is in the Central Federal District, Andrey Toptun, head of Autostats analytics department, said at the Global Business Clubs CIS Fuels and Lubricants conference in Moscow on May 22.

The amount of Russian vehicles has grown significantly, and the demand for high-quality lubricants is increasing, according to Alexander Medzhibovsky, owner of Qualitet, a Moscow-based additive manufacturer. In 2001 there were little more than 20 million cars in the country. Over the years the share of foreign-branded cars increased significantly. They come mainly from the import [market] as well as from the foreign automobile manufacturers who opened quite a few plants in Russia in the last several years, he said.

Autostat found that half of the countrys total vehicles in 2012 were foreign-branded cars. The other half were Russian-made cars, 37 percent of which were Lada models. Around 25 percent of the countrys vehicles are Russian or Soviet-made cars made more than 15 years ago. These cars are using Gost [the countrys obsolete standard] or older [API] SF and SG specifications, while the newer cars use the latest SAE and API oil specifications, Medzhibovsky said, adding that a great portion of these high-quality oils are imported because Russian consumers still find it hard to trust the domestic lubricants producers.

Of Russias total passenger car oils, around 35 percent hold API SF and SG specifications, and around 45 percent are SL specification motor oils, according to Qualitet. SJ and SM motor oil specifications follow, with both holding around 10 percent each.

Although Russian end-users view domestic lube brands with a certain reserve, the countrys vertically-integrated oil companies and independent lubricant marketers both increased production over the years, and this process is non-reversible, Medzhibovsky contended. It is a result of the growing domestic car production. Among the growing number of foreign car assembly plants, there are quite a few [car] engine producers too, and many of them are using [factory fill] motor oils and greases produced in Russia.

Russias heavy-duty fleet has seen a much slower growth rate compared to the passenger car boom. In the last eight years, the number of heavy duty vehicles grew about 15 percent, from 4.8 million units to 5.7 million units, according to Autostat. The share of foreign trucks in the heavy duty vehicle fleet is 27 percent. Forty-seven percent of the total heavy duty fleet in Russia is over 13 years old, while around 52 percent is five years and older. Over 80 percent of the Russian truck fleet is produced by the three domestic leaders Gaz, Kamaz and Zil. In the top five, Maz and AZ Ural are also included, Medzhibovsky said.

Russias heavy duty vehicles segment consumes mainly G2 and D2 Gost specification motor oil. Russian truck OEMs recommend use of SAE and API international classification oils. For example, Kamaz recommends API CI-4 grade, Medzhibovsky said.

The prominent trend in automotive lubricants in Russia is the new, tougher legislation for emission-reduction standards. The emission standard Euro 3 was introduced in the country in January 2013. The tougher Euro 4 emission-reduction standard is expected to be introduced in January 2014, and the toughest Euro 5 standard will be introduced by January 2016. Tougher emission standards result in more stringent OEMs lubricants requirements such as better fuel economy, and stronger and downsized engines, which in turn produce more heat load, while the machines reduced emission needs better afterburner catalysts, Medzhibovsky observed.

All these stringent emission-reduction requirements led to development of new additive packages that reduce the content of sulfur, phosphorous and sulfate ash, and to the development of new ash-free additives applications, according to Qualitet.

The chemical element sulfur is natures best friction modifier because it helps the antiwear properties, and we have to replace it with another additive. It is essential today to create an antiwear additive that can compensate for the shortage of sulfur in the oil, which has to be greatly reduced with the Euro 5 emission standard, Medzhibovsky contended.

The additive maker also found that the new generation of additive packages must address increased thermal stability properties, with additives that can improve an oils anti-oxidative stability related to high temperature regimes.

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