Monday, October 22, 2018

Saudi’s Automotive Sector Set for Rapid Transformation with Three Million Female Drivers Added to Roads By 2020 – Report

New customer segment and vehicle parc a big boost for Kingdom’s aftermarket as countdown begins to Automechanika Jeddah 2019


Riyadh, Saudi Arabia-Monday 22 October 2018 [ AETOS Wire ]

Saudi Arabia’s automotive ecosystem is set for a rapid transformation in the coming years, with 20 percent of the female population, or three million drivers, expected to be added to the Kingdom’s roads by 2020, a recent whitepaper stated.

An October 2018 report said the lifting of the ban on women driving in Saudi as of June 2018, along with recovering oil prices and economic policies aimed at boosting consumer spending, will result in an eight percent per annum increase of passenger vehicles sales until 2022.

The whitepaper, published by global research company Aranca, added that in addition to new car sales, the positive impact of a new customer segment over the next 1-3 years will be felt in the Kingdom’s automotive aftermarket, which was valued at US$7.4 billion in 2017.

According to Aranca, car parc (vehicles in operation), in Saudi Arabia stood at 7.3 million in 2017, with 438,000 new passenger cars and 110,000 new commercial vehicles sold for the year.  Tires accounted for the greatest slice of revenue in the Saudi’s spare parts market, with a 30 percent share in 2017 (US$2.2 billion), followed by lubricants (US$1.4 billion), batteries (US$400 million), and other components (US$3.4 billion).

Aranca’s whitepaper was published exclusively ahead of Automechanika Jeddah 2019, the only dedicated trade show for the automotive aftermarket and service industry in the Kingdom’s western region.  The 3rd edition of the three-day event will take place from 26-28 February at the Jeddah Centre for Forums and Events, featuring more than 150 exhibitors from 20 countries awaiting fresh opportunities.

Many of these opportunities will likely arise in Saudi’s western regions of Madinah and Makkah, where more than one million women are expected to get behind the wheel by 2020.

The whitepaper further stated that key industry players are already taking initiatives to capitalise on opportunities created by women being allowed to drive, including the creation of women-only car showrooms, auto-insurance claims centres and driving schools dedicated to women.

Meanwhile, rising vehicle parc is setting the stage for solid growth in the Kingdom’s aftermarket.  Aranca said 10 million vehicles will ply Saudi roads by 2022, including 6.5 million passenger vehicles and 3.5 million commercial vehicles.  As a result, demand for spare parts and related auto services will grow six percent annually, reaching a value of US$9.8 billion in 2022.

A market ripe with opportunity will be underlined by the 3rd edition of Automechanika Jeddah, which is co-organised by Dubai-based Messe Frankfurt Middle East and Saudi-headquartered ACE Exhibitions.

Mahmut Gazi Bilikozen, Automechanika Jeddah’s Show Director, said: “Consumption of auto spare parts and services in Saudi Arabia will grow at a healthy rate in the coming years, aided by the addition of a whole new segment of the population that is now allowed to drive.

“Longer warranty periods, growing vehicle parc, and environmental factors that lead to high wear and tear on car parts also provide added impetus in the auto aftermarket, with Automechanika Jeddah 2019 presenting an unrivalled platform for global suppliers to tap into emerging opportunities.”

The international presence at Automechanika Jeddah 2019 will be underlined by five country pavilions from Germany, the USA, Turkey, Korea and China.

The Turkish Pavilion comes with the support of the Uludag Automotive Industry Exporters’ Association (OIB), the sole export representative of Turkey’s automotive industry.  Ugur Aslantas, from OIB, said its Turkish exhibitors have over the last three years gained a solid understanding of the expectations and needs of Saudi’s aftermarket via their participation at Automechanika Jeddah.

“The Saudi market is very attractive for our pavilion members and they’ve increased their sales due to their participation at Automechanika Jeddah,” said Aslantas.  “The market is also growing more mature with an increasing demand for sophisticated know-how products.”

US Global Petroleum is another international exhibitor at Automechanika Jeddah 2019, and will showcase its various branded products of motor oils, transmission fluids, hydraulic and gear oils, and grease.

Iyad Assaf, US Global Petroleum’s Vice President of Sales, said: “US Global Petroleum is a manufacturer and global distributor of API (American Petroleum Institute) licensed quality lubricants, hydraulics and chemicals. We expanded in 2011 by acquiring the Conoco Phillips plant in Franklin Park, Illinois, and since have enjoyed rapid business growth in the field of petroleum engineering.

“We’ve years of experience of working in the Middle East and understand its culture,” added Assaf.  “We continuously develop a knowledge base for our customers to help them understand the latest technology trends in the industry. We sell more than oil; we offer ongoing customer support and build strong business relationships to grow our business together with our customers.”

Automechanika Jeddah is one of 17 instalments of Automechanika worldwide, the most successful automotive aftermarket trade fair brand in the world. It will alternate between the Messe Frankfurt-organised Automechanika Riyadh, which will next take place in 2020.

Automechanika Jeddah 2019 is expected to attract more than 4,000 Saudi trade visitors, as they seek solutions across seven product groups of Parts & Components, Electronics & Systems, Accessories & Customizing, Repair & Maintenance, Dealer & Workshop Management, Car Wash, Care & Reconditioning, and Tyres & Batteries.

The show will also feature the Truck Competence initiative, where more than half of the exhibitors will showcase their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repair and care.  Aranca’s Saudi automotive aftermarket whitepaper is available to download on the Automechanika Jeddah’s website at: www.automechanikajeddah.com.

Automechanika Dubai show profile:                             

Automechanika Dubai is the largest trade exhibition for the rapidly developing automotive aftermarket in the Middle East and Africa. In 2018, it featured 1,801 exhibitors from 61 countries, with a trade visitor attendance of 31,971 from 146 countries.  The trade fair covers the full range of parts for motor vehicles as well as components for the drive, chassis, body, electrics and electronic groups. It also covers equipment for vehicle service and repair, bodywork repair and painting, tyres, batteries and performance systems.

Automechanika Dubai is the perfect platform to meet new contacts, discuss new trends and technological developments, and to keep up to date with industry knowledge and source new products and solutions from the world over.  The 16th edition of Automechanika Dubai takes place from 10-12 June 2019. Show website: www.automechanikaDubai.com

Automechanika Jeddah show profile:

Automechanika Jeddah is the only dedicated trade show for the automotive aftermarket in the Kingdom’s Western region, delivering an unmatched platform for the world’s leading auto aftermarket suppliers and manufacturers to establish long-lasting business relationships with buyers and distributers.  The 2nd edition in 2017 featured 174 exhibitors from 25 countries, and attracted 4,011 trade buyers. More information is available at www.automechanikajeddah.com.

Automechanika Riyadh show profile:

Automechanika Riyadh targets the vast automotive aftermarket in Saudi’s Central and Eastern regions. The biennial exhibition alternates between Automechanika Jeddah, with the two trade fairs creating a dual platform offering international players increased business and networking opportunities throughout the Kingdom.  The inaugural edition of Automechanika Riyadh took place from 5-7 February 2018 at the Riyadh Exhibition Centre, hosting 146 exhibitors from 20 countries and welcoming 4,961 visitors from across the Kingdom.  More information is available at:  www.automechanikariyadh.com.

About Messe Frankfurt Middle East GmbH

Messe Frankfurt Middle East’s portfolio of 16 exhibitions includes Automechanika Dubai, Automechanika Jeddah, Automechanika Riyadh, Beautyworld Middle East, Beautyworld Saudi Arabia, Hardware + Tools Middle East, Intersec, Intersec Saudi Arabia, Leatherworld Middle East, Light Middle East, Materials Handling Middle East, Materials Handling Saudi Arabia, Middle East Cleaning Technology Week, Paperworld Middle East, Prolight + Sound Middle East, SPS Automation Middle East, The subsidiary also organises a series of conferences and seminars including the Worker Health Protection Conference, the Business in Beauty Summit, Think Light, and the International Conference on Future Mobility. For more information, please visit our website at www.messefrankfurtme.com

Contacts

Gareth Wright, Gareth.wright@uae.messefrankfurt.com

Samah Mousa, Samah.mousa@uae.messefrankfurt.com

+97143894573              


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