Auto industry professionals in Abu Dhabi gathered in a recent event to discuss the cumulative prospects in UAE automotive aftermarket. The capital has witnessed a steady growth in the demand for spare parts and services.
Auto spare parts demand in the Gulf region was valued at AED3.1 billion in 2015, up from AED2.9 billion in 2013; the aftermarket industry has been expected to set to grow a further 6-8 per cent annually to reach AED4.4 billion by 2020 according to analysts Frost & Sullivan. According to Ahmed Pauwels, CEO of Messe Frankfurt Middle East, â€œposting a 45 per cent growth in the amount of the vehicles registered between 2009 and 2014, the Emirates capital is a crucial market for local and international automotive aftermarket players.â€
The Fost & Sullivan reported that at present there are approximately 670,000 cars, buses, and trucks waging on Abu Dhabiâ€™s roads, accounting to 90 per cent cars. Therefore the car section, which included taxis, rentals, lease, and private cars, is the largest contributor to the Emirateâ€™s booming maintenance service market.
The motive behind the discussion was to tap the market growth and understand the tones of the automotive industry. â€œThereâ€™s a lot of room for further growth, particularly when one takes into account an expanding economy fuelled in part by tourism and infrastructure investments. This is also reflective in the growth of Abu Dhabi trade visitors to Automechanika Dubai, which in the last three years alone has increased by 33 per cent,â€ added Pauwels.
Subhash Joshi, Frost & Sullivanâ€™s Associate Director for Automotive & Transportation in the Middle East, North Africa and South Asia, who was also a speaker at the event said, â€œopportunities vary by type of services a company offers, for example for a company who is offering repair services for the car segment, the opportunity lies in taxi, rental, leasing and private cars.â€
â€œIn the bus segment, weâ€™ve seen a lot of emphasis on the tourism industry by Abu Dhabi Government, which will drive growth of private transport buses. Similarly, industrial activities will continue to drive demand for labour transport buses.â€
Joshi shared a long-term opportunities for Abu Dhabiâ€™s auto maintenance services market, saying the industry had a good prospect.