MEA auto aftermarket set to grow 43% to Dh320b by 2024

The Middle East and Africa's (MEA) auto aftermarket is expected to grow 43 per cent over the coming few years as the competition grows and demand for automobiles and their parts grows in line with growth of population, industry executives said.
"We're confident that demand for the automotive service industry and aftermarket products will remain robust, with growth largely fuelled by demand from existing vehicle part and the expected improvement of car sales moving forward," said Mahmut Gazi Bilikozen, show director, Automechanika Dubai.
He pointed out that as the aftermarket is changing, it is also bringing new opportunities for the companies. According to a TechSci Research report, the Middle East and Africa's (MEA) auto aftermarket will grow to $87.3 billion (Dh320.4 billion) in 2024 from $61 billion (Dh224 billion) last year. DP World UAE said Jebel Ali Port emerged as the UAE's leading hub for the used car sector, generating some Dh31.8 billion in automotive spare parts trade, accounting for 78 per cent of the country's used car imports. It noted that Jebel Ali Port saw 54 per cent of the regional throughput, while Jebel Ali Free Zone (Jafza), accounted for 48 per cent of Dubai's total trade value with over 550 companies in over 60 countries for the sector in 2018.
Mohammed Al Muallem, CEO and Managing Director of DP World UAE Region, said the automotive and spare parts sector are core segments that are leading drivers of economic diversification in the country.
Yasir Ali Rajput, director, United Grease & Lubricants Co., said that despite some ups and own in the macro economy, their business has been stable over the years.
"We cater both local markets as well as exports to 72 countries. For us, the market is doing very well. We also manufacture products for third party brands," Rajput said.
Rajesh Daga, assistant general manager of Emerald Spare Parts, said demand in the Middle East and Africa markets have been growing at a fast clip. "We feel some of these markets are maturing and also becoming financially stronger. Hence, we feel high quality products that we represent, will have a greater demand and consumption," Daga said.
The industry executives were speaking on the sidelines of the first day of Automechanika Dubai 2019, the largest automotive aftermarket trade fair, opened at World Trade Centre with 1,880 exhibitors from 63 countries taking part in the exhibition. The event features 23 country pavilions and 34 international trade associations, while more than half of the 32,000-plus trade visitors are expected to come from outside of the UAE. - waheedabbas@khaleejtimes.com