Tuesday 21 January 2020

Mideast auto sales revenue to top 15bn by 2021

DUBAI, April 19, 2018

The Middle East’s sales revenue from engine and car components, systems, tyres, and auto accessories, is expected to surpass the $15-billion mark in the next three years, compared to $12.4 billion in 2017, growing at a compound annual growth rate (CAGR) of 4.9 per cent, according to 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, said the report released ahead of a major industry event in Dubai.

The Automechanika Dubai 2018 trade fair, the largest exhibition for the automotive aftermarket and services industry in the Middle East and Africa region, will be held from May 1 to 3 at the Dubai International Convention and Exhibition Centre. More than 2,000 exhibitors from 57 countries are expected to take part.

Attending companies include Spain-based IQR, a leading producer of lubricants under the brand name Matrix, which 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, said a statement from the organisers.

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, it said.

The exhibitors’ sentiment is underlined by the report from TechSci Research that 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, it said.

Loizos Louca, managing director, Alco Filters, said: “We’ve been exhibiting at the event 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, chief executive officer, IQR, said: “We’re now present in 35 countries and all our efforts are focused toward expanding our international network to become a global brand.”

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

Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “Passenger cars constitute a major vehicle segment in the Middle East and Africa (MEA), 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, the 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

Tags: | Middle East | Sales | Automobile | Revenue | 2021 |

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