ME automotive aftermarket revenues to reach $15bln by 2021: Report

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Middle East sales revenue from engine and car components, systems, tyres, and auto accessories, will surpass the $15 billion mark by 2021, compared to approximately $12.4 billion in 2017, growing at a compound annual growth rate (CAGR) of 4.9 per cent, according to a report by TechSci Research, a global market research and consulting company.

The global automotive aftermarket manufacturers are gearing up for period of robust business growth in the Middle East, while new research indicates car sales and the corresponding demand for spare parts and auto services is on an upward trend.

IQR is a Spanish producer of lubricants under the brand name Matrix, and is launching its operations in the Gulf region to find new partners, while Autopumps from the UK is testing the regional waters for the supply of its aftermarket parts not only for the automotive industry, but for industrial, agricultural, and marine applications.

And Cyprus headquartered Alco Filters is looking to build on its millions of dollars of revenue generated every year in the Middle East for its vast range of 3,500 filters, after establishing a regional presence years ago.

All three are among more than 2,000 exhibitors from 57 countries at the upcoming Automechanika Dubai 2018 trade fair, the Middle East and Africa’s largest exhibition for the automotive aftermarket and services industry, to be held from May 1 to 3, at the Dubai World Trade Centre.

The report suggests an uptick in passenger and commercial vehicle sales coupled with an increase of cars-in-use across the Middle East will have a positive flow-on effect on the automotive aftermarket.

A long-time exhibitor at the annual three-day event, Alco Filters will launch its new filter range for cars, trucks, earth moving equipment, and stationary engines.

Loizos Louca, managing director, Alco Filters, said: “We’ve been exhibiting at Automechanika Dubai since 2006, and have since generated cumulatively more than $10 million of new business in the Middle East.”

“Having a strong presence in the region, we’re keen to meet up with existing clients at the event and expand our clientele base through meeting new prospects. The fact that 52 per cent of visitors to the trade fair are international coupled with the current value of the Middle East auto aftermarket makes this exhibition attractive to attend,” Louca added.

José Cruces, CEO of IQR, a debut exhibitor at Automechanika Dubai 2018, said: “We are now present in 35 countries and all our efforts are focused toward expanding our international network to become a global brand.”

“Also, we are launching our operations in the GCC and therefore being at the event enables us to show participants our brand and our values,” he added.

Meanwhile, Autopumps will launch various products at the event, including an expansion of its commercial and industrial pumps range.

Bill Cotton, owner and managing director, Autopumps, said: “We are also showcasing our expertise in the manufacture and supply of commercial camshafts, rockers and engine valves for off highway, agricultural, marine and heavy goods vehicle applications.”

“We have identified the Middle East as a strong market, which is growing in the commercial vehicle parts sector. Dubai is the regional hub for business and a standout player on the global stage,” he added.

Organised by Messe Frankfurt Middle East, Automechanika Dubai 2018 spreads over six product sections of parts and components; electronics and systems; accessories and customising; repair and maintenance; car wash, care and reconditioning; and tyres and batteries.

Its global influence is highlighted by the presence of 25 country pavilions and 36 international trade associations, while 90 per cent of exhibitors, and 52 per cent of visitors are expected to come from outside of the UAE. The 16th edition will also reflect a sense of renewed optimism in the automotive aftermarket, where emerging trends and disruptive technologies are steering the industry toward a bold new future.

And despite the recent slowdown across the region, car sales in the Middle East in the long-term will recover, with analysts Frost & Sullivan (F&S) estimating light vehicle sales will grow at a compound annual growth rate of 8 per cent, reaching 4.1 million units by 2021. That’ll put the total number of cars in operation in the region at 41.36 million according to F&S, compared to an estimated 37 million in 2017.

Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “Passenger cars constitute a major vehicle segment in the Middle East and Africa, while stabilising oil prices and significant government infrastructure in a number of regional countries will also boost growth in the commercial vehicle segment in the coming years.”

“Over its past 15 years, our event has succeeded in bringing together leading automotive aftermarket brands to this fast-growing region, providing an important opportunity to connect with new prospects, have face to face interactions with existing customers, create brand awareness, and position themselves as reliable suppliers of premium quality aftermarket products and services,” he added. – TradeArabia News Service