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Abu Dhabi vehicle maintenance market ‘to hit $1.2bn by 2020’

UAE capital’s roads are currently home to 670,000 cars, buses and trucks

PHOTO: The 14th edition of Automechanika Dubai is expected to attract more than 2,000 exhibitors from 60 countries. Credit: Charls Thomas/MEConstructionNews.com

Abu Dhabi’s maintenance service market for cars, buses and trucks is set to grow 6-8% annually to reach AED4.4 billion ($1.2bn) by 2020, according to analysts Frost & Sullivan.

The market for maintenance in the UAE capital was valued at AED3.1 billion ($844m) in 2015, up from AED2.9 billion ($790m) in 2013, according to a report released ahead of this year’s Automechanika Dubai exhibition.

There are currently 670,000 cars, buses and trucks plying roads in Abu Dhabi, of which 90% are cars. Consequently the car segment – including taxis, rental cars, leasing, and private cars – is the largest contributor to the emirate’s booming maintenance service market.

“Posting a 45% rise in the number of registered vehicles between 2009 and 2014, Abu Dhabi is a key market for local and international automotive aftermarket players,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East, organiser of Automechanika Dubai.

The market still has a lot of room for further growth, particularly when taking into account an expanding economy, fuelled in part by tourism and infrastructure investments, he added.

“This is also reflective in the growth of Abu Dhabi trade visitors to Automechanika Dubai, which in the last three years alone has increased by 33%.”

Subhash Joshi, Frost & Sullivan’s associate director for Automotive & Transportation in the Middle East, North Africa and South Asia, said the long-term prospects and opportunities for Abu Dhabi’s auto maintenance services market looked good. Vehicle sales in the emirate are expected to increase by 7-9% annually from 2017-2020.

“In the bus segment, we’ve seen a lot of emphasis on the tourism industry by Abu Dhabi Government, which will drive growth of private transport buses. Similarly, industrial activities will continue to drive demand for labour transport buses,” he noted. Moreover, there is also expected to be a ‘spill-over effect’ of the Expo 2020 in Dubai, which will drive demand for tourist and hotel buses in Abu Dhabi, he added.

The 14th edition of Automechanika Dubai, set to be held later this year, is expected to attract more than 2,000 exhibitors from 60 countries.

Returning to the show is the Truck Competence initiative, where more than 900 exhibitors will showcase their products dedicated to the truck sector, from truck parts and accessories, to workshop equipment and body repair. Automechanika Dubai 2016 will also feature the Automechanika Academy, a series of seminars and workshops given by experts and industry figures, focusing on key issues that affect the automotive aftermarket.

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