Core Viewpoint - China, as one of the largest oil consumers globally, has a robust refining capacity that supports a stable supply of base oils for automotive lubricants. The production of automotive engine oil is expected to rise steadily from 238.49 million tons in 2015 to 291.45 million tons in 2024, despite a temporary decline during the pandemic years [1][16]. Industry Overview - The automotive engine oil industry is crucial for the automotive sector, providing lubrication that reduces friction and extends engine life. Engine oil consists mainly of base oils and additives, with base oils being the primary component [3][10]. - The industry has seen a significant increase in base oil production capacity in China, growing from 6.1 million tons per year in 2015 to 13.8 million tons per year in 2024, ensuring a stable supply for engine oil manufacturers [1][16]. Production and Demand Trends - China's automotive engine oil production has shown an overall upward trend, with a slight recovery in 2023 after a decline in 2021-2022 due to the pandemic. The production is projected to increase by 1.12% in 2024 compared to 2023 [1][18]. - The demand for automotive engine oil is expected to recover to 2.9487 million tons in 2024, reflecting a year-on-year increase of 1.03% [18]. Competitive Landscape - The automotive engine oil market in China is characterized by a tripartite structure: foreign brands dominate the high-end market, state-owned enterprises control the mid-range, and private enterprises focus on niche segments. Major players include international giants like Mobil and Shell, as well as domestic companies like Sinopec and PetroChina [20][22]. Policy and Regulatory Environment - The Chinese government has implemented various policies to promote the development of the automotive engine oil industry, including support for resource recycling and environmental protection. Recent policies encourage the exploration of waste oils and plastics for processing alongside crude oil [7][8]. Future Trends - There is a growing demand for high-end engine oils as consumers become more knowledgeable about vehicle maintenance. The market is shifting from price-driven to quality-driven, with an increasing focus on specialized products for high-performance vehicles [26]. - Domestic brands are actively investing in technology research and innovation to enhance product quality and performance, aiming to compete effectively with established foreign brands [27][28].