Why vehicle sales are set to surge in the GCC this year
GCC countries are becoming increasingly-attractive markets for the automobile industry, thanks to sustained economic growth rates and continued government-driven investment on transport and logistics infrastructure.
According to Frost & Sullivan, vehicle sales in the GCC countries are set on a high-growth path. Sales of cars and pick-ups are estimated to record a compound annual growth rate, or CAGR, of 5.9 per cent in the period 2012-17 to reach 1.66 million units. Trucks and buses sales are set to rise at 8.7 per cent annually over the same period to reach 155,000 units. Saudi Arabia and the UAE are the largest markets in the GCC in terms of vehicles on the road. According to Frost & Sullivan, the total number of registered cars and pick-ups in the GCC is expected to record a CAGR of 6.3 per cent in 2012-17 to total 16.36 million units in 2017.
Over the same period, the number of trucks and buses on the road is expected to reach 1.42 million in 2017, recording a CAGR of 6.9 per cent in the same period.
As more and more personal and commercial vehicles in the region and a large amount are re-exported to other countries, this increase will also positively impact the automotive aftermarket, driving up demand for auto components and services. Automechanika Dubai 2014, the largest international trade and networking event for the automotive aftermarket serving the wider Middle East, will reflect this increasing interest in the region, with organiser Epoc Messe Frankfurt, expecting a record turnout from international exhibitors at this year’s edition.
“Automechanika Dubai is witnessing a corresponding increase in interest from leading international aftermarket players,” said Ahmed Pauwels, chief executive officer of Epoc Messe Frankfurt.