Automotive parts manufacturers flock to ‘booming’ Middle East

The automotive spare-parts industry in the MENA region will be worth $16.9 billion by 2020, according to Frost & Sullivan

PHOTO: This year’s edition of Automechanika, running from June 2-4, will host over 1,800 exhibitors from 60 countries. Credit: Automechanika

Spare-part companies are increasingly looking to set up shop in the ‘booming’ Middle East market, according to the organisers of a trade exhibition specialising in the automotive aftermarket.

Parts manufacturers exhibiting at Automechanika are investing heavily in new production facilities to establish a presence in the region, according to a statement.

According to analysts Frost & Sullivan, the demand for parts in the MENA region will be worth $16.9 billion by 2020, nearly double the industry’s value two years ago. The demand is being driven by rapid urbanisation and industrialisation as well as the growth of inter-regional road transport.

In February this year, Germany-based Cardan Service Network (CSN) made a multimillion-dirham investment in a Cardan shaft-manufacturing facility in Dubai. CSN expects to reach an annual turnover of AED13 million ($3.5 million) in 2015, growing 25% annually, according to a statement released ahead of Automechanika 2015.

The new facility will allow owners of European trucks, light commercial vehicles and construction equipment to receive custom-made Cardan shafts within 24 hours of placing an order in the UAE, and 48 hours throughout the MENA region.

CSN, a first-time participant at Automechanika, will be exhibiting its range of Cardan shafts at the upcoming exhibition.

Another exhibitor, the Canadian parts manufacturer Ecobrex, opened a $15 million warehouse distribution facility this month in Dubai, in partnership with Albelad Auto Parts Trading, to provide convenient access to its parts throughout the MENA region. The new facility has an outbound capacity of 5-8 containers per day of spare parts, with the company projecting an annual turnover of $50 million through the new facility.

“Ecobrex has already established a solid foothold in the MENA region, but in the past, we faced some challenges in terms of delivery,” said general manager Babak Ras. “With this new facility, Ecobrex will substantially increase its capacity to meet regional demand.”

Now in its 13th edition, Automechanika Dubai will cover six focus areas: parts and components, electronics and systems; accessories and tuning; repair and maintenance; tyres and batteries; and service station and car wash.

The show will run from June 2-4 2015, and will host more than 1,800 exhibitors from over 60 countries.

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