India's lubricant majors bet on EVs, digital infra to fuel future growth

Castrol India has identified electric vehicle fluids as a core growth pillar. Its Castrol ON range of coolants, transmission oils, and greases is already being used across Tata Motors' EV portfolio

India’s leading lubricant manufacturers are broadening their portfolios beyond internal combustion engine (ICE) oils to tap into emerging opportunities in electric mobility and digital infrastructure, as the industry adapts to long-term shifts in demand.

 

Castrol India has identified electric vehicle (EV) fluids as a core growth pillar. Its Castrol ON range of coolants, transmission oils, and greases is already being used across Tata Motors’ EV portfolio. The company is also collaborating with global technology providers to develop thermal management solutions for data centres, where rising demand from artificial intelligence applications is driving a transition to liquid-based cooling.

 

“The future of lubricants is not just about internal combustion; it is about serving hybrids, EVs, hydrogen, and new energy systems with the right fluids,” said Kedar Lele, managing director of Castrol India.

 

Gulf Oil Lubricants India has begun supplying EV-specific fluids — including transmission oils, brake fluids, and coolants — to about 10 original equipment manufacturers such as Piaggio, Switch, and Propel Industries.

 

To strengthen its position in the wider EV ecosystem, Gulf Oil has invested around ~150 crore across three companies: Tirex Chargers (fast direct current charging), ElectreeFi (EV software and battery swapping), and Indra Renewable Technologies (smart and bidirectional charging). These investments are projected to generate ~500–700 crore in revenue over the next four to five years. In parallel, the company is expanding its lubricant capacity by 70 per cent to 240 million litres over two years, emphasising the continued relevance of ICE lubricants in the medium term.

 

“We see EVs and new-energy vehicles as a major diversification opportunity, alongside non-automotive applications. Our focus is on developing fluids that can handle both the thermal and electrical properties unique to electric drivetrains,” said Ravi Chawla, chief executive officer of Gulf Oil Lubricants India.

 

Smaller players are also repositioning. Continental Petroleums is developing a new line of EV fluids for drivetrains, battery cooling, and thermal management. Though still at the pre-launch stage, the company expects these products to contribute 5–10 per cent of its overall revenue in the coming years.

 

“Diversification in the lubricant segment is both necessary and strategic. While traditional lubricants for ICE vehicles will continue to play an important role in the near term, developing EV-compatible fluids ensures that our portfolio remains future-ready and resilient against market shifts,” added Shreyans Khandelwal, chief operating officer and promoter at Continental Petroleums.

 

Beyond EVs, lubricant makers are diversifying into alternative fuel technologies covering compressed natural gas, liquefied natural gas, hydrogen ICE, and hybrids, as well as industrial applications in steel, cement, and mining. Data centre cooling has emerged as another high-potential growth area, with both Gulf Oil and Castrol testing immersion-cooling liquids for hyperscalers and large enterprises.

 

Industry executives say the strategy is not about replacing ICE lubricants, which will continue to dominate volumes, but about adding new growth engines. As EV adoption gathers pace and digital infrastructure scales up, lubricant majors are positioning themselves as providers of advanced fluid and thermal management solutions for a wider set of mobility and industrial applications. 

Future ready 

• Major player Castrol India calls EV fluids a core growth pillar
• Gulf Oil Lubricants India began supplying 
• EV-specific fluids to equipment manufacturers
• Lubricant makers are now looking to diversify into alternative fuel technologies 
• Data centre cooling has emerged as another high-potential growth area