Saudis Booming Automotive Aftermarket Draws Interest from Global Players

Saudi’s booming automotive aftermarket is drawing growing interest from key players in the global automotive industry. Valued at USD 2.6 million in 2015, as per figures released by the country’s General Authority for Statistics, the country has witnessed growing demand for SUVs in the passenger car segment and an increase in the demand for light trucks.

In 2015, Saudi’s import of auto parts and accessories including tires and batteries amounted to USD 2.53 billion while the country re-exported automotive afterparts worth 51 million.

Parts and accessories accounted for the bulk of the imports and this was valued at USD 996.5 million, which was followed by passenger car tires (USD 715.5 million), tires for trucks and lorries (USD615.3 million), and automotive batteries (USD 209.7 million). The imports were sourced mainly from Japan and South Korea, with 64 per cent of the batteries being imported from South Korea. Japan emerged as the top exporter of automotive parts to Saudi Arabia mainly due to its export of tires for passenger cars (30 per cent of imports) and also due to the export of parts and accessories (24 per cent of imports). The other leading exporters of auto parts to Saudi Arabia are South Korea (15 per cent), United States (15 per cent), Germany (10 per cent), and France (7 per cent).

The first edition of Automechanika Jeddah, which was held in January this year served as a platform for many key players in the global automotive industry to explore the potential of the Saudi automotive aftermarket. According to Messe Frankfurt which organized the event in collaboration with Al-Harithy Company for Exhibitions (ACE), the show which is the only such trade dedicated to the automotive aftermarket drew over 5,000 trade visitors. They are gearing up to receive even more visitors at the second edition of the show which will be held from January 31 to February 2 at the Jeddah Centre for Forums and Events in 2017.

Zahoor Siddique, Vice-President of Al-Harithy Company for Exhibitions (ACE) said that the robust trade statistics of auto parts in Saudi Arabia points to the real business opportunities afforded to exhibitors at Automechanika Jeddah.
“The successful launch of Automechanika Jeddah earlier this year has been underlined by the tremendous response from leading aftermarket players, who are keen to participate in the second edition,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East.

He added that the 2015 statistics reveal the immense potential of the Saudi market and said Automechanika Jeddah will be positioned as a dedicated networking and business development platform for the aftermarket industry to interact directly with Saudi customers and cater to the specific requirements of this significant market.