ExxonMobil projects 10% sales rise in Thailand’s lubricants market

ExxonMobil Marketing, Thailand, projects a 10% rise in sales of its flagship product, Mobil 1 lubricants, this year, ensuring its continued role as a prominent player in the finished lubricants and chemical marketing industry in Thailand.

This follows Bangchak Corporation’s acquisition of a 65.99% stake in oil retailer Esso (Thailand) Plc from ExxonMobil Asia Holdings Pte last year, consequently leaving Esso with only the finished lubricant and chemical marketing businesses managed by ExxonMobil Marketing.

Manoch Munjitjuntra, the director of ExxonMobil Marketing and lubricant sales manager, set out his targets.

“We are targeting 10% growth for our flagship products, Mobil 1, and expanding the Mobil Super customer base.”

Introduced in 1974, Mobil 1 is the first full synthetic engine oil aimed at high-performance car drivers, while Mobil Super is designed for pickup trucks and sports utility vehicle drivers, protecting engines under heavy use.

The sales manager sees a significant opportunity in the Thai market, dominated by internal combustion engine-powered cars. This potential comes despite the government’s push for zero-emission vehicles in its fight against global warming.

The Department of Land Transport’s Transportation Statistics Annual Report 2019-2023 reports over 20 million personal vehicles on Thai roads, including personal cars for daily commutes and pickup trucks for heavy loads.

Engine oil plays a crucial role in the consistent functioning of a vehicle’s engine, which is essential for drivers, the company noted.

Despite the Department of Energy Business reporting flat growth in oil demand in Thailand last year, ExxonMobil is confident of selling more products, Manoch stated.

In addition to increased spending on sales promotion, the company plans to boost sales through its network of over 700 auto parts shops and 1,400 car maintenance workshops and lube centres, said Manoch.

“We plan to add 30-50 service locations this year to become more accessible to our customers.”

Following Bangchak’s acquisition, ExxonMobil will cease selling lubricants through petrol stations currently operating under the Bangchak brand. However, it will continue sales through its network of car care centres.

Manoch also mentioned that a survey found that 80% of motorists prefer to buy engine oil recommended by car care or service centres.

Previously, only 5% of ExxonMobil lubricants were sold through Esso petrol stations, meaning that Bangchak’s takeover of Esso did not significantly impact its sales, reported Bangkok Post.