Lube-Tech PUBLISHED BY LUBE: THE EUROPEAN LUBRICANTS INDUSTRY MAGAZINE


the Cummins Westport ISL G natural gas engine Mercedes already has its Econic natural gas vehicle in service in Europe – which the OEM says can deliver lower CO2


emissions, zero


particulate emissions and a low noise level versus comparable diesel powered vehicles.


With recent funding from the US Department of Energy, Daimler Trucks has also launched both Hybrid and gas vehicles in North America.


In 2011 Volvo in Sweden begins field testing its diesel engine fuelled by a mixture of methane gas and diesel that it says is the first engine of its type to meet the strict Euro 5 exhaust emission standards and which the company says will deliver energy efficiency, improved driveability and lower maintenance costs.


Global Markets


Brazil is one of the top ten automobile manufacturing countries in the world by volume – and in 2009 the country produced over 3 million vehicles. The year also saw an increase in domestic vehicle sales which, bolstered by tax incentives, rose by 11% on 2008 figures. However surging imports and lagging exports meant that 2009 production was down by 1%. Nevertheless, with the outlook in Brazil better than in most other markets, the ever-optimistic industry plans to increase capacity by about 25%.


Brazilian emissions standards for on-road vehicles, called PROCONVE, are based on European regulations. The regulating body, CONAMA, is tightening emissions legislation so that by January 2012 HDD vehicles will need to meet levels equivalent to Euro V. The organization also has plans to introduce Euro V limits for passenger cars in the future.


Brazil is also trying to improve the quality of its fuels. Although diesel fuels with sulphur levels of 1800 and 500ppm are still in use – 50ppm sulphur diesel fuel is now available for urban transport fleets in selected cities, and 10ppm diesel will be available from 2013. There is some concern that the availability of diesel fuel containing different sulphur levels may cause confusion and misuse.


Biofuel use has been promoted for some 40 years in the region and ethanol use in gasoline grades is currently E25 and E100. As for biodiesel, mandated levels are expected to rise gradually to B10 by 2015.


These changes in fuel quality present new challenges for auto makers and fuel retailers, with concerns being expressed over the availability of low sulphur fuels and SCR fluids as well as the quality, consistency, handling and storage stability of biodiesel containing fuels.


Russia had been forecast to become the third largest global car market following the US & China. However, the economic downturn resulted in an almost 50% sales reduction in 2009.


In spite of implementing more modern standards, only 50% of the current fleet of 30 million vehicles is running at above Euro 2


emissions levels. Passenger car diesel sales are expected to grow due to pollution concerns and the desire for improved fuel economy. The fuels industry is ready, with most, if not all diesel sold in Moscow and other big cities already at 50 ppm sulphur. There is no biodiesel market in Russia and seeds grown in the region are exported to the rest of Europe.


Russia currently produces over two and a half million tons of lubricants each year, around 67% of which is for domestic consumption. Recent figures show that domestic production, consumption and export volumes have all dropped, whilst imports - generally of top tier products has increased. Three major local lubricant marketers account for almost three quarters of the market with ExxonMobil and BP holding the lions share of the meagre 240 k ton import market.


Historically some 80% of the vehicle population has been made up from domestic brands and a large proportion of the lubricants used were of API SG/CD quality. But as the population of foreign vehicles increases so higher quality lubricants like ACEA C sequences or API SL or SM will be required to protect the advanced engine hardware.


Now to India, where the economic situation has remained fairly resilient despite the global downturn, this positive performance was aided by robust private consumption and substantial fiscal stimulus. GDP growth is expected to have been around 6.6% in 2009.


Vehicle production and sales figures in India are dominated by two wheelers – predominantly motorcycles. That dominance may be challenged by the introduction of the Tata Nano and other low cost cars. Production increased slightly to just over 11 million vehicles last year.


Plans are in place to grow local production, but the auto industry has recently been hit with labour problems. Under India’s Automotive Mission Plan, which provides a framework for automotive sector development until 2015, the government has reduced import tariffs on components in an attempt to boost exports. Hyundai currently exports about half of the vehicles it makes in India to Europe and other car makers will certainly be targeting exports to reap the advantages of low production costs in India while selling in markets where the price is still attractive. However, it is not all smooth sailing in the Indian auto industry with costly disputes and poor infrastructure causing problems.


Certainly the economic downturn has taken its toll on auto manufacturers, with some projects being pushed back or halted.


The second phase of the Renault-Nissan factory in Chennai for example has been suspended – reportedly not because of uncertainties in the potential of India’s domestic or export markets, but because of the decline in the global automotive market.


While Renault has put its plans on hold, Nissan is set to produce the small Micra from the Chennai plant in 2010. As for Bajaj’s plans to produce an Ultra Low Cost Car that can


LUBE MAGAZINE No .99 OCTOBER 2010 21


No.72 page 3


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40