Automechanika Dubai to Highlight Potential of ‘Made in GCC’ in the Auto Aftermarket
The GCC automotive aftermarket is on the cusp of seismic change, and Automechanika Dubai 2022 is perfectly placed to allow the industry access to the resulting opportunities and provide a platform to discuss the challenges. In particular, disruptions in the global supply chain caused by the COVID-19 pandemic has driven rising demand for locally produced products.
In a report produced for Automechanika Dubai by consultants Frost & Sullivan, challenges facing the global aftermarket industry include worldwide supply chain disruption, digitalisation of distribution flows and an increasingly aging global vehicle fleet.
In the GCC in particular, the industry is heavily dependent upon imports, yet the report notes that the entire sector landscape is shifting. Growing demand coupled with parts delivery delays and escalating freight costs emanating from the global supply chain hiatus have created a requirement for parts sourced on the ground.
In addition, the region’s light vehicle aftermarket is estimated to grow 4.8 percent annually over the next three years, driving demand even higher.
Aftermarket revenue will also be impacted by region’s acceleration in electric vehicle adoption. While the GCC’s EV adoption lags compared to some regions like Europe, the US, and China, recent initiatives such as Saudi Arabia, the UAE, Egypt, and Morocco to establish local EV manufacturing or assembling, will lead to a pick-up.
The number of EVs on GCC roads is expected to at least double annually from 2023 to 2030, with UAE buyers leading the way and Al Damani DMV300 from M Glory being the first EV ‘Made in the GCC’ model to go to market. The Emirates has also welcomed the region’s first EV-focused aftermarket workshop which is offering EV servicing, warranty extension, and repairs.
With the current changes impacting the automotive aftermarket, those in the industry need to track developments and plan adaptation. At Automechanika Dubai, industry experts will be looking to absorb developments and insights which could see the sector accelerate along a highway of evolution.
Mahmut Gazi Bilikozen, Show Director of Automechanika Dubai, says, “We’re looking forward to bringing the leading names in the global automotive aftermarket together at Automechanika Dubai 2022, and thrilled to see 17% increase in visitor nationalities. At a time where the industry is facing a step-change, it will benefit anyone involved in the aftermarket in the region to come and discover some of the newest opportunities and innovations.”
