Suzuki officially introduced ECSTAR lubricant last year for their bikes and now they have expanded to four wheelers also
Automotive industry is not just about the products itself as there are so many industries within in this like tyres, lubricants etc. Most of the two wheeler manufacturers have their own lubricants and oil for their products but in car industry most of the manufacturers outsource lubricants from leading companies like Indian oil, Shell etc.
Maruti Suzuki is the leading car manufacturer in sales and the company introduced its premium lubricant in India under Suzuki brand which is ESTAR. Suzuki officially introduced ECSTAR lubricant last year for their bikes and now they have expanded to four wheelers also. The feedback from customers after using ECSTAR lubricant is positive which is why the company decided to introduce it for Maruti Suzuki cars also.
The Indo-Japanese brand will give specifications and supplier will offer the product. Then the product is going to be packaged and sold under Suzuki ECSTAR brand. The ECSTAR branded lubricants gives Suzuki experience which the competitors could not offer as these are developed specially for their products.
But the company is going to charge premium for the experience as they are priced higher than competitors. Depending on the quantity and requirements of the products, price can vary from Rs. 300 – Rs. 3500 per litre which is very high premium. But the introduction of ECSTAR lubricant is going to be affected badly for competing lubricants.
Most of the profit for Maruti Suzuki comes from service and in service, engine oil and coolants accounts for the major portion of overall service cost. So introducing their own lubricants will help Maruti Suzuki to improve its profits considerably. The company has the largest share in Indian market and the majority of vehicles serviced in India are their products so it’s a good move from the company to improve its margins.
Initially, Maruti is going to offer ECSTAR engine oil for Nexa workshops only and later it will be expanded to over 3000 service workshops of the company across India. Servo and other lubricant manufacturers is going to face stiff competition from ESTAR as Maruti Suzuki is pushing it which will help the ESTAR brand to eat into the market share of leading brands easily.