Automotive aftermarket goes greener and more digital

Despite setbacks due to the impact of the Covid-19 pandemic, experts believe that the aftermarket is poised for unprecedented growth
Despite setbacks due to the impact of the Covid-19 pandemic, experts believe that the aftermarket is poised for unprecedented growth

Dubai - The GCC’s automotive parts retail revenue will grow at a compound annual growth rate of 5.8 per cent to $6.84 billion in 2025



by

A Staff Reporter

Published: Tue 14 Dec 2021, 7:02 PM

Businesses across the automotive aftermarket sector are becoming increasingly aware about the need to contribute to a global ‘greener world’, experts at the 18th edition of Automechanika Dubai said.

The event was opened on Tuesday by Mattar Al Tayer, director general, chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA) & commissioner general for Infrastructure, Urban Planning and Well-Being, at the Dubai World Trade Centre (DWTC). Organised by Messe Frankfurt Middle East, the event features exhibitors from 47 countries and 12 national pavilions all demonstrating just how far the sector has come in its technological transformation and signaling more change ahead.

“The automotive aftermarket is undergoing big disruption,” said Amin Uz Zaman, MD of Wemzer Industries. “With electrification and digitisation driving change, we are reshaping the way customers, automotive suppliers, and industry stakeholders think of cars and driving and how business in the automotive aftermarket is conducted and value is created. The massive penetration of internet connections and smartphones has driven the customer’s expectation for a seamless, comfortable, and most importantly a transparent shopping experience. The automotive industry was probably delayed in embracing this transformation, but the pandemic accelerated the process and now we are witnessing a massive digitisation of the industry.”

He also identified additive manufacturing, remanufacturing, e-commerce, hybrid/electric drive trains, and mobility as a service as the new sector drivers. Despite setbacks due to the impact of the Covid-19 pandemic, Wemzer Industries believes the aftermarket is poised for unprecedented growth.

“There may be challenges related to supply chain, but we have positive indications for economic recovery across our target markets. The automotive aftermarket revenue is anticipated to record $800 billion by 2027, according to the most recent study by Global Market Insights Inc. It is a well-known fact that the global automotive industry is dynamically expanding,” said Zaman. “Digitalisation has recently taken an exponential pace. There are certainly dimensions that are yet to be revealed. It is a revolutionary transformation of the business and its value chain, requiring the integration of new layers and partnerships with new enablers to complete the transformation that goes beyond offering a seamless omnichannel shopping experience.”

With industry analysts forecasting the GCC’s automotive parts retail revenue to grow at a compound annual growth rate of 5.8 per cent to $6.84 billion in 2025, experts say that there’s much at stake for industry players facing greater than ever competition.

Mahmut Gazi Bilikozen, show director of Automechanika Dubai, says that the good news is that 76 per cent of Middle East respondents say they are ready to face the changes in the industry, which puts the regional industry in a great position for recovery and growth.

“It is also encouraging that 36 per cent view the sector as growing over the next five years – which is up from 29 per cent in the 2018 survey so industry-wide optimism is increasing. A further 27 per cent of Middle East respondents in 2021 predict business to continue as usual, while 30 per cent of Middle East respondents expect new technology to present significant opportunities,” added Bilikozen.

business@khaleejtimes,com


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