Pakistan autoparts industry sees 71 percent rise in Middle East sales
Pakistan’s autoparts industry is on the verge of a Middle East market breakthrough, following a 71 percent year-on-year rise in sales in 2002. Figures released by the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) show that automotive aftermarket exports to the region amounted to $24 million last year, compared to $14 million in 2001.
Pakistan’s drive to secure a larger Middle East market share will move into top gear at Automotive Aftermarket Middle East (AAME) 2003, Dubai’s annual international trade show for automobile parts, accessories, tires, batteries and garage equipment, to be held at the Airport Expo, from March 25-27, 2003.
“Dubai is an open market for Pakistan’s autoparts sector and through it PAAPAM companies are trying to enter the fast growing Middle East market,” said Azhar Ali, PAAPAM vice chairman, that represents 240 companies.
“Up to 60 percent of aftermarket imports into Dubai are re-exported, making this segment worth up to five billion dollars annually. With autoparts exports to the Middle East less than 10 percent of total exports, there are substantial opportunities for PAAPAM companies to increase sales, especially in emerging markets such as Libya and Iran.”
To date, nine Pakistan companies have contracted to participate in the PAAPAM supported national pavilion. They will be displaying a range of vehicle components including engine valves, gaskets, camshafts, shock absorbers, steering mechanisms, brake hubs, radiators, door locks and instruments and instrument panels.
In addition to Pakistan, eight other countries will have national or industry pavilions at AAME 2003. They are Australia, India, China, Spain, Taiwan and, for the first time, the UK, Germany and Turkey. Organizer International Expo-Consults (IEC) says over 250 companies from more than 30 countries across North and South America, Europe, the Middle and Far East and Australasia are projected to take part in the exhibition, that will occupy 3,000 square meters.
“The GCC spare parts market is growing rapidly in tandem with increasing vehicle ownership. It is now worth in excess of $11 billion, making it highly attractive to international manufacturers and suppliers. AAME will provide the ideal showcase for companies targeting this lucrative business,” said IEC Vice President Mohammed Falaknaz. — (menareport.com)
© 2003 Mena Report (www.menareport.com)