Sunday 20 May 2018
 
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Asad Badami, managing director, A-Map Trading

MEA automotive aftermarket trade to reach $31bn by 2022

DUBAI, 19 days ago

The Middle East and Africa (MEA) region’s automotive aftermarket trade is expected to grow at 7 per cent per year to $31 billion in 2022, up from $22 billion in 2017, according to a latest report by analysts TechSci Research.

The increase has been influenced by the addition of 4.3 million vehicles, or 4.67 per cent growth per year to the existing fleet of 92 million active vehicles in the region, said the report.

The report added that a slackening of regional vehicle sales hasn’t ebbed the flow of demand for the automotive service industry and aftermarket products, with growth largely fuelled by demand from the existing vehicles in operation and the expected improvement of car sales moving forward.
 
Asad Badami, managing director, Al Muqarram Auto Parts (A-Map) Trading, said: “While the growth in sale of new cars might have slowed down, the maintenance, repair and overhaul of those vehicles in operation will continue to drive the demand of auto spare parts and accessories, before many of them come up for replacement due to continuous erosion, wear and tear.”

“With 3 million vehicles joining the existing active fleet of 92 million vehicles every year, we see a solid continuous growth in auto spare parts and accessories market,” he said.
 
The automotive aftermarket is the secondary market of the automotive industry, concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, equipment, and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer.

The parts, accessories, etc, for sale may or may not be manufactured by the OEM.

Sales of tyres, oils, lubricants, coolants, filters, batteries, brakes, electrical parts, lights, and other accessories and car components was worth $12 billion in 2017, with this set to increase to $16 billion by 2022, the report said.

In Africa, the auto aftermarket was worth $10 billion last year, with demand for parts and accessories tipped to reach $15 billion by 2022.
 
Auto spare parts trade through Jebel Ali Port reached $10.75 billion in 2017, according to a latest report by Jebel Ali Free Zone Authority (Jafza), operator of the Middle East’s largest free zone. This also reflects that Dubai represents the biggest automotive aftermarket trade in the MEA region.
 
With $10.75 billion worth of auto spare parts trade in 2017, Jebel Ali Free Zone alone represents more than 48.86 per cent of the $22 billion auto spare parts and accessories trade concluded in the MEA region.
 
Badami said: “In addition to the above factors, automotive aftermarket traders in the UAE also cater to the wider Middle East Africa and Central Asian markets – where demand continues to outpace the development of infrastructure, thus putting pressure on the roads.”
 
“We represent the largest automotive aftermarket trade community in the world due to the sheer magnitude of the trade volume that makes Dubai as the largest hub of auto spare parts and accessories. As a major source market for those countries, auto spare parts and accessories traders will continue to serve those growth markets,” he added.
 
“Therefore, we see a continuous growth of products and services in the auto spare parts trade and maintenance, repair and overhauling automobiles in the region,” he concluded.
 
Tyres accounted for the lion’s share of sales in both regions according to TechSci, comprising 22 per cent ($2.6 billion) of the aftermarket in the Middle East in 2017, and 23 per cent ($2.3 billion) in Africa.

This was followed by engine oils, lubricants, and coolants, which comprised a seven percent share of sales last year in the Middle East ($840 million), and six percent in Africa ($600 million).

A-Map, one of the largest automotive aftermarket suppliers and manufacturers in the region, is going to launch a number of new products, services and initiatives at the Automechanika Dubai trade fair, which takes place from May 1 to3, at the Dubai International Exhibition and Exhibition Centre.

The annual three-day event is the Middle East’s leading international exhibition for the auto service industry and aftermarket, and will feature more than 1,900 exhibitors from 55 countries in its 16th edition.

A-Map is participating at the Automechanika Dubai with two exhibition stands including one in Shaikh Saeed Hall 2 – Stand no B12 where it is showcasing two brands Solite and Achilles, as well as the ASIMCO stand at Hall 5 – Stand C38 where it will be showcasing ASIMCO Spare parts.
 
With over 15 years’ experience, A-Map has emerged as a global market leader, specialising in the distribution of quality and reliable aftermarket automotive spare parts. A-Map not only distributes products, it distributes excellence.

The company has manufacturing and distribution a series of globally trusted brands, among them being Solite Batteries, Sebang Batteries, Hyundai Xteer Lubricants, Asimco Brake Pads, Achilles Tyres and RBI Rubber Parts. With corporate headquarters in Dubai, A-MAP has a network of branches fully operational in China, South Africa and Qatar. Its global network is continuously expanding due to our perfection and quality of products.
 
The global automotive aftermarket market has seen a potential development over previous years, with total value of the trade reaching $193.18 billion in 2017 and is expected to grow to $302.66 billion in 2023, will grow at a compound annual growth rate (CAGR) of 7.77 per cent.
 
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 CAGR of 4.9 per cent, according to TechSci Research company.

The 15th edition of the Automechanika Dubai in 2017 saw the participation of 30,322 trade visitors from 136 countries that sourced the latest products and services from 1,955 exhibitors from 57 countries including leading local and international automotive aftermarket companies. The number of key buyers and decision makers attending the exhibition continues to rise each year, making the show an important source of new business contacts, it stated. – TradeArabia News Service




Tags: | Trade | Automotive | MEA | 2022 | Aftermarket |

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