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Africas lubricant blenders largely agree that independent workshops are not the preferred sales channel for automotive lubricants. This view is in contrast to a study published in April by market research firm Markets and Markets that contends such workshops are the best sales channel for automotive lubricants.

The study noted that Africas automotive lubricants market is segmented into original equipment manufacturer dealerships, workshops, garages and other outlets including independent retailers. It claims that independent workshops hold the major market share because they provide faster service at much lower cost than dealerships. According to Markets and Markets, the study was aimed at identifying emerging trends and opportunities in Africas automotive lubricants market along with providing a detailed classification of the market in terms of volume.

Rami Al Kinanny, general manager for Hi Tech Oils and Grease in Egypt, differed with the study because Africa has a huge lubricant counterfeiting problem. As a result, he claimed that many consumers prefer to use OEM maintenance providers for oil changes and other scheduled tasks.

Kinanny added that Egypts automotive lubricant market is segmented according to target markets. Gas stations are preferred for relatively new cars because carmakers and lubricant producers sign deals with them to provide the proper service. Owners of out-of-warranty cars, on the other hand, tend to patronize independent workshops due to price and proximity to work or home.

Emmanuel Ekpenyong, head of lubricants for Honeywell Oil and Gas in Lagos, Nigeria, agreed, stressing that independent workshops are not necessarily the preferred outlet for automotive lubricants in Africa. I am of the opinion that the preferred channel differs from country to country and also depends on the product type, he said.

Olaniyi Okedairo, COO for Ranod West Africa Oil and Gas in Lagos, related that independent retailers are the preferred sales channel for automotive lubricants in Nigeria. And Ekpenyong added that the best outlet in Nigeria depends on the grade of lubricant. For API SN synthetics, the preferred channels are OEM dealerships and independent workshops. However for [lower grades], the channel of choice invariably would be independent retailers, he said.

Samer Akram, director-operations for Unichem South Africa, agreed, stressing that lubricant sales channels segment according to target markets. Consumers that have access to the higher end brands tend to maintain their service plans with the marques. The majority of car enthusiasts prefer independent workshops, and their general understanding of automotive lubricants tends to be higher, said Akram.

Consumers purchasing brand new cars will always obtain service at the dealerships to maintain warranties and service plans. Owners with expired warranties and service plans will go to independent retailers and workshops. These service providers will also serve customers from the performance car and enthusiast markets, said Akram.

In contrast, Richard Mugambi, lubricant sales manager for Gulf Energy in Nairobi, Kenya, supported the findings of the Markets and Markets study, especially for the public transport sector. He contended that this market constitutes the biggest consumer of automotive lubricants, and that due to the nature of their business, pricing is a big consideration when procuring products and services.

Independent workshops are able to source lubricants at reduced prices and, therefore, are able to service this sector effectively. In addition, the workshops accept clients who specify their preferred brands, and they offer competitive labor charges, said Mugambi.

However, some blenders differed with the Markets and Markets conclusion that independent workshops provide faster service. These workshops provide faster delivery for premium lubricants but not necessarily for mid-tier to low-end products, said Ekpenyong.

Kinanny added that conditions are entirely different in Egypt. We have mechanics on every corner that change oil, offering prices cheaper than those of multinational companies. Sometimes, these oils are from unknown brands and producers. Thats why Shell started a campaign to deliver lubricants to homes, garages and offices, he said.

Finally, Mugambi and Akram noted that independent workshops ought to be more service-oriented. They are very flexible, convenient and faster in terms of getting the job done. But they dont offer warranties on their work and dont maintain service records. And there is always the possibility that they are using substandard or counterfeit lubricants, said Mugambi.

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