Dubai, UAE: More than 100 professionals of the Middle East’s automotive aftermarket gathered in Dubai to discuss the future trends in their industry, with the rise of digitisation likely to have a major impact on the way they do business in the region.
Valued at US$367 billion in 2015, the global market for replacement parts is estimated to increase to US$384 billion in 2016 according to analysts Frost & Sullivan, while in the Middle East, spare parts revenue was worth US$12.98 billion in 2015, and estimated to reach US$17.27 billion by 2020, growing annually by 5.9 per cent.
Subhash Joshi, Associate Industry Director for Automotive & Transportation Practice at Frost & Sullivan, was speaking at the 8th Automechanika Network at the H Hotel in Dubai today, highlighting the global and regional trends in the automotive industry.
Joshi said 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,” said Joshi.
“Effective retailers are adapting their strategies to include digital flagship stores, lifestyle and pop-up stores, mobile and online retailing.”
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 most recent edition of Automechanika Dubai in May 2016 featured 2,017 exhibitors from 58 countries, and attracted 30,018 visitors from 138 countries. The 15th edition will take place from 7-9 May 2017 at the Dubai International Convention and Exhibition Centre.
Meanwhile, the 2nd edition of Automechanika Jeddah will take place from 31 January – 2 February 2017 at the Jeddah Centre for Forums and Events, as more than 180 exhibitors from 25 countries take aim at the Kingdom’s thriving US$2.6 billion aftermarket.
Figures released by Saudi’s General Authority for Statistics showed Saudi imported US$2.53 billion worth of auto parts and accessories, passenger and commercial vehicle tyres, and batteries in 2015, while re-exports in the same year was worth US$51 million.