The key opportunities for MAZ business are as follows:
- The fuel consumption in the road transportation is the major growth driver for crude oil consumption and is forecast to reach 46% of daily oil demand of 111.1m barrels by 2040, even after accounting for electric vehicles representing 15% of then global vehicle population of 2.5b billion units.
- Since 1995, the EPA has mandated the use of detergency control additives in gasoline to control carbon deposits. Oil companies develop their own detergency additives to differentiate their fuel products at the pump. SAE China and China Automotive Testing and Research Centre (CATARC) have studied these additives and found them as single function product that is less effective in showing fuel savings and emissions reduction, especially in modern advanced engines.
- Fuel quality improvement has failed to catch up with the demand of modern advanced engines. In the last four decades, the only change is the reduction of sulfur to near zero. Further progress is diffiencult to achieve as the refinery technology is unable to reduce carbon mass in fuel, the which gives rise to carbon buildup in engines and emissions control systems upon incomplete combustion of the fuel.
- The current fuel standard of ultra-low sulphur does not achieve fuel savings and emissions reduction. Its purpose is to enable the emissions control system to capture the NOx and PM.
- China is not only the largest car market in the world, 70% of the cars fleet is less than 5 years old; a high volume of new sales ensuring the fleet is replenished very quickly with the latest technology. The traditional detergency additives are not effective in these new engines. Moreover, these new advanced engines are generating more nanoparticles, which are more deadly than PM2.5.
- Carbon choking the expensive and sophisticated emissions control in all new generation vehicles is a frequent occurrence. Keeping the emissions control working accounts for about 55% of the annual maintenance cost for a fleet. More importantly, nanoparticles escaped from these devices poisoning the air quality.