Igor Aizin: "There is Room for Innovation in the Motor Oil Industry"

Written by: Katie Scott

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The head of a motor oil sales company and business expert discusses the trend of synthetic and biodegradable oils, the electrification of transport, and the role of local distributors. The global market for motor oils for automotive engines has significantly grown recently, and this trend is expected to continue. According to the latest report from the analytical company The Business Research Company, the market was valued at $43.47 billion in 2024, will reach $45.94 billion in 2025, and $56.4 billion in 2029. Businessman Igor Aizin believes that the main reasons behind this growth are active urbanization and the increasing number of cars. Aizin's company is involved in the sale of "Mannol" motor oils, a brand owned by the German manufacturer Sudheimer Car Technik GmbH, which distributes its products in various countries worldwide, from France and the UK to Brazil. Aizin has been the brand's representative in Siberia for ten years, during which time the distributor network under his leadership has expanded to cover an area with a population of over 20 million people. We spoke with Igor Aizin about current trends in the production and distribution of motor oils and how this reflects on both global and local markets.

You have been working with the distribution of European motor oils in Siberia for over ten years, in a local market that is developing under the influence of global trends. How, in your opinion, does the global motor oil industry look now? What key trends are shaping it?

The market is changing significantly – primarily due to technological progress, stricter environmental regulations, and the fact that consumers are becoming more conscious in their choices. One of the main trends right now is the shift to synthetic and biodegradable oils. These outperform mineral oils in all key parameters: they better protect the engine, increase fuel efficiency, and, importantly, reduce the environmental impact. Additionally, many countries are tightening eco-standards, so the demand for such products will only grow. Another important factor is the electrification of transport. Yes, electric vehicles do not require traditional motor oils, but that doesn't mean the lubricants market will disappear. On the contrary, new niches are emerging: specialized fluids for electric motors, gearboxes, and battery cooling systems. So, there is plenty of room for innovation in the motor oil industry. And, of course, the environmental aspect is not only related to the oils themselves but also to everything connected to their production and disposal. Companies are investing in the recycling of used oils, developing more eco-friendly packaging, and transitioning to sustainable technologies. This is no longer just a marketing move but a real market and consumer demand.

The motor oils and lubricants market is highly competitive, yet under your leadership, your company has tripled its turnover. This means you have a good understanding of customer preferences, even though they are constantly changing. Can you tell us how your clients' needs have evolved in recent years? What selection criteria are most important to them today?

One of the main factors is the longevity of the car. People are changing vehicles less frequently and are investing more in maintenance, so they are looking for oils that genuinely extend the life of the engine. Ecology is also becoming a top priority. More and more car owners prefer products with minimal environmental impact – whether it's biodegradable oils or formulations with extended oil change intervals that help reduce waste. And, of course, convenience. There is a growing demand for quick service options where oil changes can be done without hassle, without having to worry about labels and specifications. Manufacturers and service providers need to consider these changes and offer solutions that truly make life easier for the customer.

As far as I know, over the past few years, your company has expanded its distribution network across a vast area in central Russia. And this is at a time when the global motor oil market has faced serious issues related to disruptions in logistics and supply chains. What solutions have helped minimize risks?

Yes, the market has indeed felt the effects of global disruptions – geopolitical tensions, trade restrictions, rising transportation costs, and raw material shortages. All of this forces companies to seek new approaches. One key strategy is diversification. Companies can no longer afford to rely on one or two suppliers or be dependent on a specific region. Manufacturing capacities are now being spread across different countries to reduce reliance on logistics issues. Another important direction is digitalization. Modern technologies, such as real-time tracking systems, allow companies to monitor the movement of goods and quickly adjust routes. This reduces the risk of delays and helps forecast inventory more accurately. And, of course, partnerships with logistics operators. Companies that proactively establish alternative supply routes and create contingency plans for emergencies are in a much stronger position. In such conditions, flexibility is the key factor for survival in the market.

The oils and lubricants produced by the German corporation Sudheimer Car Technik GmbH, sold under the Mannol brand, are approved by leading global automakers and are sold in many countries. Your company is one of the official distributors of SCT products. How important are local distributors for global motor oil brands? Is it really possible to run a successful business without a strong local network?

Without reliable local distributors, it would be extremely difficult for a global brand to succeed. Distributors are not just intermediaries; they are strategic partners who help the brand adapt to local conditions. They know the market, understand demand specifics, build relationships with customers, and respond quickly to changes. A strong local network gives the brand stability. If the distribution system is set up correctly, it ensures stable deliveries, quality service, and timely customer support. In today's environment, running a successful business without a strong local network is almost impossible – competition is growing, and customers care not only about the brand of the oil but also how quickly and conveniently they can get it.

The region where you operate is not the easiest for business. You are involved in the sale of motor oils in an area, a significant part of which is located in the North, and you have to take into account harsh climatic conditions, remoteness from major centers, and logistics challenges. What are the specific features of the motor oil market in northern regions, and how do they align with global trends?

The motor oil market in northern latitudes is a unique segment that requires manufacturers to adapt to extreme conditions. While in temperate climates, oils work in relatively stable temperatures, in regions like Siberia, Alaska, Canada, or northern Europe, engines and transmissions face serious challenges. In winter, temperatures can drop below -50°C, and in summer, they can rise above +30°C, creating additional stress on lubricants. The standard for vehicles and special equipment operating in such conditions is synthetic oils with low viscosity. Additionally, resistance to oxidation and thermal degradation is crucial. In remote areas, where oil change intervals may be extended due to logistics challenges, durability and composition stability are especially important. Reliability is a priority for northern regions, but the trend toward reducing the carbon footprint is also present here: manufacturers are developing synthetic oils with lower levels of harmful impurities and offering solutions to improve fuel efficiency. Another trend is the development of automatic oil condition monitoring technologies. For example, in the extreme north, where access to service is limited, predictive diagnostic technologies allow real-time monitoring of oil quality and its replacement based on actual wear, rather than scheduled intervals. Overall, the motor oil market in northern regions is developing in line with global trends but has its own specific characteristics.

The fact that you have experienced success in business for ten years despite all the economic and social upheavals proves that you have the ability to see far ahead. Could you give us a forecast what trends will define the global motor oil industry in the coming years, and how should companies prepare for these changes?

In the coming years, the motor oil market will definitely not remain the same – ecology, technology, and consumer demands are forcing manufacturers to adapt. Synthetic oils will continue to gain popularity because they are more reliable, last longer, and perform better in extreme temperatures. At the same time, the market for biodegradable oils made from renewable sources is developing. This is not just a trend – these products are supported by both customers and regulators, as the world moves toward reducing the carbon footprint. Another important factor is the tightening of environmental standards. Manufacturers will have to invest in new formulations that not only protect engines but also reduce emissions. This is a challenge, but also a stimulus for those who focus on research and innovation.

An additional topic is electric vehicles. Yes, they don’t require traditional motor oils, but they have their own needs: lubrication for gearboxes, battery cooling systems. Therefore, petrochemical companies are already beginning to adjust their product lines for this segment, as its share will only grow. Another technological leap is related to additives. Now, oils are becoming "smart" – new formulations not only lubricate but also provide real-time information about the engine's condition. This reduces wear and makes maintenance more predictable.

How should companies prepare for these changes? Invest in the development of new products, particularly for electric vehicles and ecological standards. Expand the product range, implement digital technologies, and work closely with automakers to produce oils that are perfectly suited for modern engines. Those who manage to adapt will not only stay in the market but will emerge as leaders.