Considering from the demand, in 2006, the lubricant demand and price in China market was on a continuous rise. According to the latest statistics, China's accumulated lubricant output of Jan-Dec amounted to 57.23 million tons, slightly rising by 20% over the 56.67 million tons of the same period of 2005. Besides, from Jan to Dec 2006, the accumulated lubricant import and export totaled up to 13.09 million tons and 2.26 million tons respectively, up by 143% and 738% year on year.
With regards the variation in product, the year 2006 witnessed a series of new lubricant varieties. It can be clearly concluded all the new products developed by each lubricant manufacturer are featured with energy-saving and environment-protecting performance, which is just the inevitable trend of lubricant. The promulgation of national new standard for automobile exhaust emission as well as the requirement in approaching foreign environment-protection criterion will definitely boost the vigorous generalization of environment-friendly products. Meanwhile, the pressure on energy will put an increasingly higher demand on the oil-saving function of lubricant, so manufacturers are successively devote to the development of oil-saving products so as to highlight their sale points.
Considering China lubricant industry's development, it is full of fierce competition and its competition pattern and characteristics are set as critical enterprise guidelines in terms of regulating strategic deployment and implementing market strategies. Based on the diversified competition involving product quality, brand value, cultural deposits and technical dispute, how to master the demand features of consumer market and create new demand has become the most crucial strategy to the competition in lubricant market.