Saudi Arabia will hold the lion’s share of cars – Frost & Sullivan
The number of passenger cars in the GCC is estimated to increase by an average of 7.4% annually over the next four years to hit 19.1 million by 2020, new research shows.
Although a slight decline in vehicle sales in the GCC is expected this year, sales will stabilise in 2017, analysts Frost & Sullivan said in a report released ahead of this year’s Automechanika Dubai. A cumulative growth phase from 2017-2020 will put the region back on track as the Middle East and North Africa’s largest automotive market, the report said.
Saudi Arabia will hold the lion’s share of cars on GCC roads, with 10.03 million vehicles by 2020 – a figure comprising 52.5% of the entire regional market.
The UAE will come in second with 3.53 million vehicles, an 18.5% share. The rest of the GCC will have 5.54 million vehicles, with Kuwait being the largest followed by Oman and Qatar.
According to Frost & Sullivan, the average age of cars in the region will increase to eight years in 2020. By then, 27% of vehicles in operation will be 0-3 years old, while cars aged 10 years and older will dominate the market, with a 31% share.
“The growth of car numbers on GCC roads combined with an aging fleet will drive demand for automotive aftermarket spare parts and services,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East, the organisers of Automechanika Dubai.
Demand for spare parts – excluding tyres and batteries – in the GCC alone will be worth $11.9 billion by 2020, up from an estimated $7.6 billion in 2015, he added.
Expected to attract more than 30,000 visitors from 134 countries, Automechanika Dubai 2016 will take place from May 8-10 at the Dubai International Convention and Exhibition Centre.
Among the companies that will be exhibiting at this year’s show will be Midwest Truck & Auto Parts, the USA’s largest manufacturer and distributor of aftermarket heavy-duty replacement parts.
Orlando Serna, vice-president of international sales, said the company will be looking to grow its customer base in the region with its expanded product line servicing major Japanese brands like Isuzu, Mitsubishi and Hino.
“Our presence is fairly new in the Middle East and African region,” said Serna. “Our goal is to bring our expertise, our commitment to quality and continual improvement to the wider region’s automotive aftermarket.”