Here's a huge opportunity for Indian suppliers of commercial vehicle spare parts and services. And it lies in the Middle East.
19 Mar 2015 | 6745 Views | By Autocar Professional Bureau
Manufacturers and distributors of the GCC’s automotive aftermarket gathered in Dubai yesterday to discuss new opportunities in the region’s commercial vehicle (CV) market, as Saudi Arabia spearheads a regional surge in demand for CV spare parts and services. The Gulf Cooperation Council (GCC) is a political and economic alliance of six ...
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Manufacturers and distributors of the GCC’s automotive aftermarket gathered in Dubai yesterday to discuss new opportunities in the region’s commercial vehicle (CV) market, as Saudi Arabia spearheads a regional surge in demand for CV spare parts and services. The Gulf Cooperation Council (GCC) is a political and economic alliance of six Middle Eastern countries — Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.
According to global analysts Frost & Sullivan, there are currently 750,000 trucks and buses on Saudi Arabia’s roads, with this number growing 8.4 percent annually to reach 1.2 million by 2020.
The influx of new and used commercial vehicles in the kingdom means demand for spare parts is also on the rise, valued at US$2.05 billion (Rs 12,949 crore) in 2014, and estimated to reach US$3.65 billion (Rs 23,057 crore) by 2020, according to Frost & Sullivan.
The key to tapping into the Saudi Arabia’s lucrative CV market was the key topic at the fifth Automechanika Dubai Network, attended by more than 90 industry figures of the region’s automotive aftermarket.
“Sales of commercial vehicles are on an upward drive in the Gulf region, with Saudi Arabia at the forefront of increased opportunities for the lucrative CV spare parts market,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East, organiser of Automechanika Dubai.
“Saudi Arabia and the UAE are already home to vehicle assembly lines for major manufacturers such as Mercedes, Volvo, and MAN in Saudi, and Scania and Ashok Leyland in the UAE, so the market is really beginning to take shape.”
Subhash Joshi, Regional Head of Automotive & Transportation for the Middle East & North Africa at Frost & Sullivan, and a speaker at the Automechanika Dubai Network, said that Japanese CV brands are in high demand in the Kingdom. “In terms of market share, Isuzu and Mitsubishi have led the light commercial vehicle market with a whopping 70 percent share with limited imports of used trucks in this category,” said Joshi. “For the medium and heavy commercial vehicle segment, the dominance of used vehicles was much higher when compared to light vehicles.”
The increased focus on CVs is one of the main features of Automechanika Dubai 2015, which takes place from June 2-4 at the Dubai International Convention and Exhibition Centre. The three-day event is the Middle East and Africa’s largest trade show for the automotive aftermarket, and has a dedicated Truck Competence section. In 2014, 506 of the 1,696 exhibitors had truck competence within their portfolio, with this figure set to grow this year.
Automechanika Dubai 2015 will see 22 country pavilions and 37 international trade associations, while nearly 90 percent of exhibitors will come from outside of the UAE.
Among the leading international exhibitors with truck competence within their portfolio include WABCO from Belgium; Schaeffler, MS Motorservice, Wulf Gaertner Autoparts, BPW, Jost, ZF, and Herth+Buss from Germany; Asuki Automobile Industries from Singapore; AMP Automotive from Brazil; and AFA Industries from the USA. Regional exhibitors include Moshref Trading from Iran; NASCO Automotive from Jordan; and UAE-based companies Dynatrade, Europart, Global Autoparts, Al Rostamani, and Al Habtoor.
Automechanika Dubai 2015 features six core areas including Parts & Components, the largest section; Electronics & Systems; Accessories & Tuning; Repair & Maintenance; Tyres & Batteries and Service Station & Car Wash.