The race is on for Middle East's $14.8b auto aftermarket

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The race is on for Middle Easts $14.8b auto aftermarket
Indian Consul-General Vipul visiting the India pavilion during Automechanika Dubai 2017 at the Dubai World Trade Centre on Sunday.

Dubai - Automechanika opens; 25 country pavilions, 36 international trade associations participating

by

Issac John

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Published: Sun 7 May 2017, 7:56 PM

Last updated: Sun 7 May 2017, 9:59 PM

Automechanika Dubai 2017, a regional showcase for the leading brands in the global automotive aftermarket, opened on Sunday at the Dubai International Convention and Exhibition Centre as the outlook for the Middle East spare parts market brightened.
Mattar Al Tayer, director-general and chairman of the board of executive directors at Dubai's Roads and Transport Authority, inaugurated the 15th edition of the region's largest auto aftermarket trade fair where 1,954 exhibitors from 57 countries are vying to increase their share of the regional market estimated to reach $14.8 billion by 2021.
The three-day fair features 25 country pavilions and 36 international trade associations, while more than half of the 30,000-plus trade visitors are expected to come from outside of the UAE, organisers of the show said.
Automobile parts manufacturers from Germany, India, Taiwan, and Korea have made their strong presence through their respective national pavilions.
The India pavilion, led by the Indian Brand Equity Fund, the Engineering Export Promotion Council (EEPC) and the Automotive Component Manufacturing Association (ACMA) has lined up more than 90 exhibitors, comprising auto parts manufacturers and leading exporters.
Indian Consul-General Vipul opened the India pavilion.
Adhip Mitra, director of EEPC India, said the country's exports of auto components to the UAE reached $107 million in 2016-17 fiscal, accounting for just 5.4 per cent of the Emirates' annual auto parts imparts valued at $2.25 billion. The is a huge potential for our exporters to tap in the UAE and rest of the Middle East where the auto aftermarket is set for a dynamic growth in the coming years," said Mitra.
Vinnie Mehta, director-general of the ACMA, said with the government of India's vision to make India a leading destination for designing and manufacturing of automobiles and auto components, the opportunity for India to emerge as a global market supplier of automotive components strengthens further. According to Automotive Mission Plan 2016-26 the Indian auto component industry aims to achieve $200 billion in revenue by 2026 from the current $39 billion. Over the next 10 years, exports of auto components are poised to hit 70-80 billion, up from $11 billion at present.
"India's auto components industry is expected to record significant growth and to realise this, the industry requires $25-$30 billion in investments. The industry will also have to develop capabilities for in-house design, harness frugal engineering and create product differentiation through innovation. A move towards product and process innovation along with zero defect quality will be an integral part of this change," said Mehta.
Ahmed Pauwels, CEO of Automechanika Dubai's organiser Messe Frankfurt Middle East, said with an estimated 44.5 million passenger vehicles and a further 1.8 million commercial vehicles poised to ply Middle East roads by 2020, the automotive services industry is set for a buoyant growth.
Balkrishna Industries (BKT) from India is among the key international players in Automechanika Dubai's tyres and batteries section. Rajiv Poddar, joint managing director of BKT, said: "We've made massive investments in our manufacturing facilities and processes, which ensure uninterrupted supply of class leading quality products."
Automechanika also features two insightful conferences providing a deeper understanding into connected mobility and the future direction of the regional aftermarket: the Spare Parts and Maintenance Conference on May 7, and Smart Traffic Middle East on May 8 and 9.
- issacjohn@khaleejtimes.com


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