More than 100 professionals of the Middle East’s automotive aftermarket gathered in Dubai, UAE, to discuss the future trends in the industry, with the rise of digitisation likely to have a major impact on the business methods in the region.

Valued at $367 billion in 2015, the global market for replacement parts is estimated to increase to $384 billion in 2016 according to analysts Frost & Sullivan, while in the Middle East, spare parts revenue was worth $12.98 billion in 2015, and estimated to reach $17.27 billion by 2020, growing annually by 5.9 per cent.

Subhash Joshi, associate industry director for automotive and transportation practice at Frost & Sullivan, was speaking at the 8th Automechanika Network at the H Hotel in Dubai, highlighting the global and regional trends in the automotive industry.

Joshi said that the increasing urbanisation is leading to the creation of new retail formats and smart distribution networks, with growing connectivity transforming automotive retail.

“The multi-channel strategy of the future would include the unbundling of the retail business from the favoured one-stop-shop model to an unbundled approach with multiple services and products being aggregated and offered online,” he said.  

“Effective retailers are adapting their strategies to include digital flagship stores, lifestyle and pop-up stores, mobile and online retailing,” he added.

Joshi said these trends are coming to the Middle East too, with dealer groups and aftermarket service providers creating new digital roles to enhance the customer experience.

“The use of technology is set to make a telling impact in the way vehicles are serviced with specific app-based programmes running full diagnostic checks and vehicle tests,” he added.

The Automechanika Network brings together key industry players for a formal gathering discussing different topics related to the global and Middle East automotive aftermarket.

The highly popular biannual event is organised by Messe Frankfurt Middle East, the organiser of Automechanika Dubai, the Middle East and Africa’s largest automotive aftermarket exhibition, and Automechanika Jeddah, Saudi Arabia’s dedicated aftermarket show.

“The Automechanika Network has proved an effective forum for regional industry stakeholders to interact with thought leaders and global players while discussing key issues that impact the industry worldwide and in particular, their effects on the region,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East.

“The current topic has particular resonance in the region, which is among the more active automotive aftermarkets in the world,” he added.

The most recent edition of Automechanika Dubai in May 2016 featured 2,017 exhibitors from 58 countries, and attracted 30,018 visitors from 138 countries, it added. – TradeArabia News Service