Saudi Arabia’s auto services and spare parts market is estimated to grow 6 per cent annually over the next five years, it was revealed at the Automechanika Jeddah 2019.
More than 80 exhibitors from 15 countries are showcasing their latest offerings at the leading auto aftermarket trade fair, being held at the Jeddah Hilton Hotel, Jeddah, Saudi Arabia. The fair will conclude today (February 27).
The organisers of the event include Ace Group and the Automechanika brand sub-licensor Messe Frankfurt Middle East.
Mazen Batterjee, vice president of the Jeddah Chamber of Commerce and Industry, opened the show. It highlighted new government policies and a significant boost in car parc (vehicles in operation) fuel rising demand for related auto aftermarket supplies a services.
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Initiatives such as allowing women to drive in 2018 coupled with a concerted shift toward implementing cleaner technologies is having a positive impact on the market, as is ongoing infrastructure development, it said.
According to global research company Aranca, Saudi’s car parc stood at 7.7 million in 2018, with 350,000 new passenger cars and 115,000 new commercial vehicles sold for the year. Around 10.5 million vehicles will ply Saudi roads by 2023, including 6.85 million passenger vehicles and 3.65 million commercial vehicles.
The upshot will be felt keenly by industry professionals in Saudi’s spare parts and related auto services market, which is expected to be worth $10.15 billion in 2023 says Aranca, compared to $7.6 billion in 2018.
Tyres contributed the most to the kingdom’s spare parts market revenue in 2018, with a 30 per cent share ($2.28 billion). That’s followed by lubricants ($1.44 billion), batteries ($380 million), and other electronics, accessories, and components ($3.49 billion).
Mahmut Gazi Bilikozen, Automechanika Jeddah’s show director, said: “The event arrives as the Saudi automotive sector undergoes a sizeable transformation.”
“One of the big developments in recent months has of course been the lifting of the ban of women driving, and as a result, since June 2018, more than 40,000 driving licences have been issued to women across the kingdom,” he said.
“Reports also indicate that 20 per cent of the female population, or three million drivers, are expected to be added to Saudi roads by 2020, and so not surprisingly, vehicle parc will also grow. With this new customer segment, the flow-on effect will be felt in the aftermarket, not only in terms of rising demand for spare parts, but also in related auto services,” he added.
Bilkozen continued: “We strive to present an unrivalled platform for global suppliers to tap into emerging opportunities in the kingdom, and in Automechanika Jeddah, we are offering thousands of Saudi trade buyers and professionals an important information source with the latest products and solutions from the global aftermarket.”
Hadi Al Harith, chief executive officer, Ace Group, said: “The Automechanika brand has established itself as the leading and only exhibition catering to the automobile aftermarket providing a singular opportunity to this industrial cluster supporting the indispensable and expanding requirements of Saudi Arabia.”
“The increasing infrastructure projects, the annual pilgrimage and the new segment of female drivers to the market all portend a strong and continuous business for the international and Saudi stakeholders and to the specialist visitors a vast investment potential,” he added.
The event is expected to attract a large audience of Saudi trade visitors, as they seek solutions across six product groups of parts and components, electronics and systems, repair and maintenance, tyres and batteries, car wash, care and reconditioning, and accessories and customising.
Among the many exhibitors shining the spotlight on their latest innovations this this week is American-headquartered Armolan, which is launching its IR Ultimate window tints that effectively block up to 99 per cent of UV rays and reduce heat by as much as 90 per cent in hot Middle East climes.
Tetyana Bianchino, managing director of Armolan Middle East, said: “That change (allowing women to drive) was so important for our business and our Saudi sales records have improved almost 60 per cent since that time (June 2018).”
“Customer satisfaction is our highest priority, and that’s why we’re doing our best to reach our customers by attending Automechanika Jeddah. Saudi Arabia is full of opportunity, and the best way to improve sales performance is to participate in these types of shows to inform and educate the market about our products and solutions,” Bianchino added.
Meanwhile, UAE Company National Paints is a debut exhibitor at Automechanika Jeddah, and is launching its Numix car refinishing paint system specifically designed to suit all brands of vehicles with an infinite variety of colours.
Automechanika Jeddah 2019 returns with its popular Truck Competence initiative for products dedicated to the entire value chain in the truck sector, while the global presence is underlined by five country pavilions from Turkey, Korea, China, Taiwan and Hong Kong.
Also returning is the Automechanika Academy in partnership with Autolink and Institute of the Motor Industry, where C-Level Recruitment in the auto industry and developments in Electric and Hybrid Vehicles are among the key topics discussed by industry experts.
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-licensed Automechanika Riyadh, which will next take place in 2020.
