Castrol India sees the country’s lubricating oil demand rising by 3-5 pc/year for at least the next five years.

The growth reflects India’s still-low car penetration rate, as well as slower electrification of the vehicle parc compared with markets like China.

“We’re seeing more than 20pc growth in the car category given the low penetration in India of passenger cars,” Castrol India Managing Director Sandeep Sangwan said in an earnings conference call.

“The underlying lubricants business and related fluids will continue to stay robust for the next – in fact, going well into the 2040s,” he said.

The pace of vehicle electrification in India is also likely to support lubricants demand for longer.

“The electrification is not going to be as fast as in China,” Sangwan said.

Electric or hybrid-electric vehicles accounted for more than 25pc of China’s new car sales throughout most of the past year.