Middle East and Africa aftermarket growing
The Middle East and African auto aftermarket is forecasted to grow annually by seven percent over the next five years.
Sales of auto parts and accessories across the region are estimated to reach US$31 billion by 2022.
According to an April 2018 whitepaper by analysts TechSci Research, a slackening of regional vehicle sales hasn’t ebbed the flow of demand for the automotive service industry and aftermarket products, with growth largely fuelled by demand from existing vehicle parc and the expected improvement of car sales moving forward.
The report stated that in the Middle East, sales of tyres, oils, lubricants, coolants, filters, batteries, brakes, electrical parts, lights, and other accessories and car components was worth US$12 billion in 2017, with this set to increase to US$16 billion by 2022. In Africa, the auto aftermarket was worth US$10 billion last year, with demand for parts and accessories tipped to reach US$15 billion by 2022.
It was further revealed in the report that the total vehicle fleet size across the Middle East and African region was 92 million in 2017, while three million new cars were estimated to be sold in the Middle East last year, and a further 1.3 million in Africa.
Ahmed Pauwels, CEO of Automechanika Dubai’s organiser, Messe Frankfurt Middle East, said, ‘The automotive aftermarket is directly associated with vehicle parc, and car owners appear to be focusing on maintaining their vehicles for longer periods, thereby boosting the auto aftermarket in the long run.
‘Commercial fleet owners are also interested in maintaining their existing vehicles for longer periods, leading to a boost in the requirements for aftermarket components and services. ‘