In 2025, inflation, geopolitical tensions, and volatile crude oil prices will challenge the lubricants industry, driving demand for alternative formulations like EV and bio-based lubricants. Strategic pricing, agility, and cost optimization will be crucial, according to
Kedar Lele, Managing Director, Castrol India Limited.
Amid these challenges, technological advancements are opening new avenues for growth. Lele points out the growing influence of AI for Castrol and highlights that India’s data center market is projected to reach USD 8 billion by 2025, with capacity growing from 1,150 MW in 2023 to 1,700 MW. This growth, driven by AI, cloud, and 5G, presents an opportunity for Castrol India to provide advanced cooling solutions.
“In 2025, AI will transform automotive marketing, driving 8.5% growth through personalized strategies and geo-targeted campaigns. This shift will enhance engagement and optimize marketing across all channels for sustained growth,” he says.
Reflecting on Castrol’s milestones, Lele breaks down what worked for the company in 2024 and outlines the defining trends he anticipates for the coming year in an exclusive conversation with Storyboard18.
Edited excerpts:
What were the key achievements and highlights for you and your teams in 2024?
2024 has been a landmark year for Castrol India, defined by strategic announcements, innovative product launches, and impactful marketing campaigns that have strengthened our brand and deepened audience engagement. On a personal note, this year also marks a pivotal milestone in my career as I begin my journey as Managing Director at Castrol India.
This year, brand and marketing initiatives took centre stage, highlighted by our association with Shah Rukh Khan as our brand ambassador. He spearheaded the launch of Castrol EDGE product range in the year’s first 360-degree marketing campaign, ‘Stay Ahead’. We also launched two impactful long-haul campaigns – Castrol CRB TURBOMAX Pragati Ki Paathshaala, empowering over 12,000 truckers across 35 cities, and Castrol POWER1’s India’s Ultimate MotoStar, providing exclusive training for exceptional riders. Sports marketing played an important role in our partnerships with Mumbai Indians, KTM Cup Season 2, and major broadcast sponsorships for the IPL, T20 World Cup, and Wimbledon.
In product expansion and innovation, we expanded our product range with three new Castrol EDGE variants designed for SUVs, Hybrids, and European vehicles, offering tailored performance solutions. We introduced Castrol CRB TURBOMAX+ CK4, a premium truck lubricant tested on Indian OEM vehicles for over 100,000 kilometers. Additionally, we also expanded our Castrol Auto Care product portfolio with the launch of Castrol Microfibre Cloth and Castrol Shiner Sponge. These innovations, along with our expanded portfolio in the automotive sector, solidify Castrol’s leadership in the high-performance lubricants market.
Our distribution network expanded significantly, with over 580 Castrol Auto Service outlets, 29,500 bike points, and 9,400 multi-brand car workshops, resulting in a nationwide footprint of 136,000 outlets. We also strengthened our presence in rural Bharat with 35,000 workshops and retail outlets. Through our social investment programs, we positively impacted nearly 500,000 truckers and mechanics. Additionally, we achieved a milestone in sustainable packaging by increasing the recycled content in HDPE plastic bottles to 50%, reinforcing our commitment to environmental responsibility.
What defining trends stood out for you in 2024?
Audience fragmentation is driving the rise of digital marketing, which focuses on lower-funnel performance strategies. Advances in digital and social media have enabled diverse, niche-targeted content, surpassing traditional media. According to the Axis My India survey, 52% of Indians reported increased digital usage in the past year, underscoring the dominance of digital platforms.
Rural India driving automobile expansion: Rural India, with over 900 million consumers, is emerging as a key segment, driving significant auto sales growth, especially in two-wheelers. To capture this potential, we are expanding our retail and distribution networks in these areas.
Shift towards cautious and well-informed vehicle purchasing decisions: Recent government policy changes, particularly the removal of FAME 2.0 incentives, have made Indian consumers more cautious and deliberate in their vehicle purchase decisions, affecting the EV market and sales trends.
Sports Marketing gaining prominence: Sports marketing enhances brand visibility and engagement through strategic partnerships. Our key collaborations with Mumbai Indians, IPL, T20 World Cup, and Wimbledon have boosted brand preference, visibility, and search volumes, leveraging audience segmentation and channel proliferation.
How did the rise of AI and generative AI impact your industry this year?
In 2024, AI and generative AI are beginning to reshape the lubricants industry, streamlining operations and improving customer engagement. In particular,
Data-Driven marketing for enhanced engagement: AI enables data-driven personalized campaigns to boost engagement and brand perception. At Castrol India, we partnered with Rephrase AI to deliver impactful celebrity videos to workshops, enhancing customer experience.
Transforming training and upskilling in automotive: AI is transforming automotive workforce training by upskilling employees, enabling faster adoption of new technologies, and helping manufacturers and service providers stay ahead in an evolving market.
What disruptive trends will take the spotlight in 2025?
The Indian automobile industry has made remarkable progress in 2024, setting the stage for even greater advancements in 2025. Let’s take a closer look at the key trends shaping the road ahead.
Evolving consumer behaviour: In India, growing awareness of vehicle maintenance and rising incomes are driving demand for both basic and premium auto care products. Aligned with this trend, we have expanded our portfolio to cater to diverse customer preferences in this evolving market.
Disruptive forces shaping the industry: In 2025, inflation, geopolitical tensions, and volatile crude oil prices will challenge the lubricants industry, driving demand for alternative formulations like EV and bio-based lubricants. Strategic pricing, agility, and cost optimization will be crucial.
Shaping EV landscape: The Indian EV market is set to grow significantly, with Gartner projecting around 500,000 EVs on the road by the end of 2025, representing 51% growth in the Indian EV market. Jefferies also anticipate a gradual rise in electric two-wheeler adoption, with market share expected to surpass 13% by 2026-27. However, the growth momentum may be impacted by the removal of FAME 2.0 incentives, potentially slowing the industry’s expansion.
Rise of data centres: India’s data center market is projected to reach USD 8 billion by 2025, with capacity growing from 1,150 MW in 2023 to 1,700 MW. This growth, driven by AI, cloud, and 5G, presents an opportunity for Castrol India to provide advanced cooling solutions. We have invested ₹500 crores in R&D for thermal management innovations, including Castrol ON immersion cooling fluids, developed across our global technology centers.
Artificial Intelligence (AI) transforming marketing landscape: In 2025, AI will transform automotive marketing, driving 8.5% growth through personalized strategies and geo-targeted campaigns. This shift will enhance engagement and optimize marketing across all channels for sustained growth.
What are your New Year’s resolutions on a professional and personal front?
In 2025, our resolution is to lead in delivering value through innovative, performance-enhancing products across Automotive and Industrial segments. By leveraging cutting-edge technologies, we aim to meet and exceed customer expectations, focusing on efficiency, sustainability, and long-term growth. Our commitment to innovation will empower consumers with solutions that drive performance and contribute to a sustainable future, reinforcing our position as a trusted industry leader.
On personal grounds, I aim to strengthen engagement with employees and customers nationwide, by building deeper connections to foster collaboration and growth. Additionally, I would like to commit to personal well-being through daily yoga and mindfulness, ensuring I stay fit and focused to overcome challenges and drive success.