Middle East has secured its position as one of the world’s most significant and fastest growing automotive markets. Analysts predict Middle East vehicle sales to reach 4.4 million by the year 2020.
The importance of the Middle East market in the automobile and its related industries is evident in the high level of international participation at Automechanika Dubai 2016 – arguably the most popular automotive aftermarket exhibition in the MENA region.
This year marked the 14th edition of Automechanika Dubai. Highlights of the event included several product launches and the usual wheeling and dealing seen at such gatherings. Around 2,017 exhibitors from 58 countries were exhibiting their wares and the number of visitors exceeded 30,000 belonging to 119 countries.
The exhibition was categorised across six product groups comprising of parts and components, electronics and systems, repair and maintenance, tyres and batteries, accessories and tuning, and service station and car wash.
The automotive aftermarket expects to benefit from burgeoning Middle East vehicle sales. According to Frost and Sullivan, the grand total of vehicles sold in the region in 2015 was 3.2 million. And by 2020, the number is expected to hit 4.4 million. In line with this, the number of vehicles on the road will increase from 34.8 million in 2015 to 44.5 million in 2020.
Given the above statistics, it is not surprising that most aftermarket brands are interested in expanding their interests in the region. The automotive aftermarket sales ran to $12.98 billion in 2015. The expected increase in proportion to vehicles sales is a red flag to brand leaders to step up their strategy and grab the largest piece of the pie they can.