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Growing opportunities in Saudi’s Central, Eastern regions

Mar 27, 2017

Industry players await inaugural automotive aftermarket trade show targeting US$8.9 billion dollar spare parts market

Riyadh, Saudi Arabia: Automotive industry professionals are attending a two-day roadshow across Saudi’s Eastern and Central regions, as they look at ways to boost access to the Kingdom’s auto aftermarket where revenues are estimated to be worth US$8.9 billion in 2021.

The Automechanika Riyadh 2018 launch event is currently touring the Kingdom’s capital Riyadh today (27 March) and Dammam (tomorrow), as more than 150 manufacturers, distributors, suppliers, traders, key buyers, and government representatives discuss opportunities for new and existing companies in the GCC’s largest automotive market.

With 354,000 cars sold in the first half of 2016, Saudi Arabia is ranked 21st in the world in vehicle sales volume according to research analysts GfK, while approximately 8,440 outlets currently service the aftermarket dealing in tyres, batteries, spare parts and engine oils.

More than half of these (4,473 outlets) are in the Eastern and Central regions according to GfK, presenting plenty of scope for suppliers and manufacturers to boost their distribution networks and partnerships.

Which is why there’s plenty of interest from the global auto aftermarket community in the very first edition of Automechanika Riyadh, the largest dedicated trade show for Saudi’s aftermarket in the Eastern and Central regions. 

The biennial trade fair, which takes place from 5-7 February 2018 at the Riyadh International Convention & Exhibition Center, is set to give international players a major lift in Saudi Arabia’s spare parts market, which is well on the road to recovery.

According to analysts Frost & Sullivan, the total revenues in the Kingdom’s automotive aftermarket, including Jeddah to the West, Riyadh Central, and the Eastern region of Dammam, Dhahran and Al Khobar,  will grow 5.1 per cent annually over the next five years, reaching SAR 33.62 billion (US$8.9 billion) in 2021.  The chief factor driving this growth is a surge in vehicle numbers, with 10.3 million cars expected to ply the Kingdom’s roads by 2021, up from 7.7 million in 2015.

Major revenue is expected to be generated by regular maintenance parts such as tyres (SAR 10.5 billion), batteries (SAR1.56 billion) and lubricants (SAR 6.01 billion), while brake pads are expected to account for almost 25 per cent of ‘other parts’ category (SAR15.550 billion).

Automechanika Riyadh 2018 is expected to feature more than 150 exhibitors from 20 countries, with organisers Messe Frankfurt Middle East and ACE Group confirming exhibitors have signed on early as official Launch Partners. 

These include O2Proformance, a provider of innovative auto care products that enhance the efficiency and appearance of automobiles, and Samir Odeh Group, which specialises in the distribution of Original Equipment Manufacturer (OEM) parts from Europe.

Ahmed Al Hussaini, the Managing Director for the Gulf region at O2Proformance, said: “We decided to participate at Automechanika Riyadh, as the visitors fit our target market perfectly.  The Kingdom’s Central and Eastern regions are hugely important to us, and our product range is specifically designed to meet the needs of the regions’ automotive aftermarkets.”

Dr. Samir Odeh, Chairman and CEO, said the company expects to meet quality customers and establish new business opportunities early next year: “With a desire to meet the growing demand of the Middle East’s automotive sector, in 1968 Samir Odeh was founded with our headquarters in Riyadh, KSA,” said Odeh.

“We lead the way for spare parts in the automotive and industrial sector, and we specialise in the distribution of only the highest quality OEM parts in the Middle East, especially in Saudi.  Our focus is on transportation, manufacturing, and the industrial sectors, and we support thousands of businesses across all sectors.”

Automechanika Riyadh is the 17th global instalment of Automechanika, the world’s most successful automotive aftermarket trade fair brand. It will alternate between the Messe Frankfurt-organised Automechanika Jeddah, which will next take place in January 2019.  

Zahoor Siddique, Vice President of Ace Group, said: “ACE is pleased to expand its footprint in Riyadh with the launch of Automechanika Riyadh, importantly because Riyadh has the largest number of aftermarket companies in the Kingdom. Also this show will cater to the neighbouring Eastern Province due to its close proximity.”

The Automechanika Roadshow to Saudi Arabia takes place on 27th March at the Radison Blu Riyadh, and 28th March at the Novotel Dammam Business Park.

Messe Frankfurt Middle East, the UAE-based subsidiary of Messe Frankfurt Group, is also the organiser of Automechanika Dubai, the wider Middle East and Africa’s largest automotive aftermarket trade exhibition. More information about Automechanika Riyadh is available at: www.automechanikariyadh.com.