Automechanika 2013

K H A L E E J T I M E S | A DV E RT I S I N G S U P P L E M E N T

Grab a share of the growing trade pie Heavy weights in the automobile sector are staking claims of the burgeoning auto parts industry by reaching to newer markets and exhibiting at major events

UAE second largest GCC consumer at $2.01 billion

Suneeti Ahuja-Kohli

S

ale of every automobile opens a window of opportunity and business for the ancillary sectors such as the automotive spare parts — a shadow industry that has been registering robust growth along with the healthy rise of the automobile industry globally. On the home front, too, trade in automotive spare parts is growing at an accelerated pace, keeping up with the demand in the emirates and around the region.

The total trade business of auto parts in Dubai has witnessed a growth of 191 per cent in the last nine years. As per the data gleaned from Dubai Customs database, total trade volume of auto parts stood at $3.4 billion in 2003 and has incrementally risen ever since, barring 2009, when the sector witnessed a slump. In 2011, the total volume of trade in Dubai stood at $9.9 billion — making Dubai one of the most important trans-shipment hubs in the region.

According to industry estimates,

The three-day exhibition is being held at the Dubai International Convention and Exhibition Centre from June 11 to 13 between 10am and 7pm almost 40 per cent of the goods that land in Dubai are re-exported to different countries. Automotive parts and accessories form a large chunk of goods that are re-exported to different markets. This is followed by high demand for tyres for passenger cars, buses and lorries.

Ball bearings and automotive engine parts, on the other hand, constitute five per cent each to the total trade volume.

In terms of final destination of automotive goods, Iran takes a lion’s share of the trans-shipment products at 30 per cent, followed by Saudi Arabia at 9 per cent and Iraq taking up almost 4 per cent of the goods. The rising volume of trade

from Dubai has made it a hot spot for industry professionals and international events like Automechanika Messe Frankfurt, which has been organising its trade exhibition in Dubai for almost a decade.

Started in 2003 with 119 exhibitors, Automechanika Dubai 2013 has played a significant role in bringing fresh business and propping up the industry with thick order books. The three-day exhibition is being held at the Dubai International Convention and Exhibition Centre from June 11 to 13 between 10am and 7pm. Last year, the exhibition attracted 1,324 exhibitors and over 20,000 visitors to the event. This year 1,465 exhibitors from 58 countries will be attending the event to reach out to the wide spectrum of audience.

The pavilion will be divided into five distinct product areas, namely Parts and Systems, Repair and Maintenance, Tyres and Batteries, Service Station and Car Wash, and Accessories and Tuning.

The exhibition is free to attend for trade professionals.

— suneeti@khaleejtimes.com

A fully integrated automotive aftermarket parts supplier, Global Auto Parts specialises in Genuine Quality spare parts for all major Japanese, Korean, European and American brands of passenger cars and trucks.

The countries of the Middle East continue to be an extremely attractive market for the automobile sector, thanks to strong ongoing economic growth and a flourishing aftermarket trade.

In a recent report, research firm and Knowledge Partner of Automechanika Dubai, Frost & Sullivan, estimated that the total consumption within the automotive aftermarket in the GCC countries reached as much as $7.5 billion in 2012. With consumption worth $2.01 billion last year, the UAE was the second largest consumer market within the aftermarket in the GCC after Saudi Arabia.

Ahmed Pauwels, CEO of Epoc Messe Frankfurt, organiser of Automechanika Dubai, the region’s largest trade platform for the automotive aftermarket, said: “Thanks to its superior transport and logistics infrastructure, the region serves as a key import and trans-shipment hub for the aftermarket trade that reaches across the wider hinterland in the MENA region, Iran and Central Asia, South Asia and Eastern Africa.”

“Automechanika Dubai will highlight the vast potential of the regional market that is still untapped and showcase new trade and business development opportunities that exist for key industrial players,” Pauwels added.

According to the Frost & Sullivan report, Parts and Accessories make up the lion’s share of the consumption, totalling $4.51 billion. Tyres and Inner Tubes were the next most significant category of the aftermarket consumption, being worth $1.49 billion in 2012. Lubricants and Batteries made up the next biggest sectors, at $816 million and $715 million respectively last year.

Going forward, the aftermarket is expected to maintain a healthy rate of growth, with Frost & Sullivan estimating that Parts and Accessories, Lubricants and Batteries would grow at a CAGR of around 13 per cent between 2012 and 2017, while consumption of Tyres and Inner tubes would keep pace with a CAGR of 12 per cent over the same period.

Jean-Michel Selles, Managing Director of KYB Middle East, said: “Automechanika Dubai is a very significant part of our business development strategy in the Middle East thanks to its wide footprint in the region. We expect favourable results from our participation this year.”

Automechanika

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Global Auto Parts

Quality matters with auto parts Global Auto Parts is planning to raise awareness of key issues in the industry through various media including trade events, advertising, radio and print articles Global Auto Parts, part of the renowned Al Habtoor Group, aims to raise the bar in the auto spare parts arena for distributors, repairers and consumers in the GCC, MENA and wider global regions. It is a fully integrated automotive aftermarket parts supplier, specialising in high mortality parts for all the major Japanese, Korean, American and European brand passenger cars and LCVs. Global Auto Parts understands that quality is most important in the case of auto spare parts. Thus, it sources its parts from the factories that make vehicle manufacturers’ Original Equipment (OE) in various parts of the world, after studying the manufacturing operations to ensure that the processes are up to international

quality standards. “When the part is packed in a Global Auto Parts box and brought to the market, it is an assurance that the part is of Genuine Quality and repairers can confidently fit them in their customers’ cars, the vehicle owners can then be rest assured that they have purchased Genuine Quality at reasonable prices without compromising on their safety,” elaborates Carscadden.

The auto parts industry in the GCC was reported to be worth more than $9 billion in 2012. In this, the ratio of low quality and counterfeit parts may be as high as 30 per cent. Counterfeit and fake products can result in vehicle failure under normal driving conditions and lead to accident or injury. Carscadden urges car owners to always check that genuine quality parts are fitted, especially with safety critical products like

brakes and steering components.

According to Carscadden, the problem of low quality parts is not unique to this region but the more stringent policies and awareness in the US and Europe makes it less of an issue there. He says, “The UAE is one of the largest hubs for the global demand for automotive components, imports not only being for use in this region but also for re-export markets. If there is any doubt that there are spurious parts, the industry may find somewhere else to buy and this multi-billion dollar industry will decrease rapidly in the GCC. In an advanced automotive market, like the UAE, this should be controlled and monitored through self-governance and well as legislation, we have the legislation in place, it just needs higher awareness.”

In the coming months, Global Auto Parts is planning to raise awareness of these issues in many ways through various media including trade events, advertising, radio and print articles.

Global Auto Parts are exhibiting at Automechanika Dubai, between June 11 to 13 and can be found in Hall 5, Stand 118. The company is actively recruiting distributors at the event. More information can be obtained at info@globalautparts.com

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