MEA car uptake drives growth in Dubai auto aftermarket

Dubai’s growing status in the auto aftermarket was highlighted by figures released at Automechanika Dubai 2019 showing double-digit growth over the last ten years in the Emirate’s aftermarket parts trade.

According to Dubai Customs, Dubai traded 2.1 million tonnes of auto parts and accessories worth $10.3 billion in 2018, a 32 per cent increase in value of what the Emirate traded in 2009 (US$7.8 billion). That figure includes imports of auto parts, accessories, batteries, tyres, and engine components worth US$5.5 billion last year, while exports and re-exports into surrounding continents was worth US$4.8 billion.

Dubai’s status as a gateway to emerging global markets was of particular note at the Automechanika trade show, the Middle East and Africa’s (MEA) largest automotive aftermarket trade fair.

Show director Mahmut Gazi Bilikozen said: “In the coming years, demand for both passenger and commercial vehicles will rise across the Middle East and Africa, driven by recovering economic conditions, government incentives to boost regional production plants, increasing per capita income, and ongoing construction activities.

“This in turn impacts the aftermarket and Automechanika Dubai, with its trans-regional reach, is the ideal platform to meet and interact with key players and buyers in this market.”

The Middle East and Africa’s auto aftermarket has been valued at US$61bn, with the region on target for six per cent annual growth over the next six years, thanks to projected rising car sales and more manufacturing bases.

A White Paper by global analysts TechSci Research notes that Saudi Arabia’s decision to allow women to drive in 2018, increasing online spare parts sales, and growing demand for vehicle modifications are major factors accelerating growth in the Middle East’s aftermarket, which was valued at US$28.14bn in 2018.

The second hand auto spare parts market in the Middle East is also driving new jobs and industry, with more than 100 small and medium-sized enterprises spread across the region. The UAE is the major supplier of automotive spare parts within the Gulf region as well as for Iran, the CIS, Indian sub-continent and Africa.

The 17th edition of the Automechanika annual showcase, which took place at the Dubai International Convention and Exhibition Centre, 10-12 June, registered a four per cent year-on-year increase in exhibitors in 2019, with 1,880 exhibitors from 63 countries; and a two per cent increase on pre-audited visitor and trade buyer numbers of 32,414 from 146 countries.

It included 23 country pavilions and 34 international trade associations, plus an Innovation Zone providing informative insights to the auto aftermarket’s future.

Exhibitor Azhar Jaleel, Marketing Manager in the Middle East for German manufacturer Mann + Hummel, added: “We’ve noticed an increasing number of visitors are now attending from other regions like North Africa, making it a win-win situation for us.

“In Africa we have more prospective business deals and business contacts, and we expect the market will grow at seven per cent in the next year. The Gulf region will grow at an expected 2-4 percent, depending on how high the oil price is. In general, we see that Africa and North Africa are playing a bigger role in our sector now.”


(via Gulf Today, Automechanika Dubai)