Vehicle sales have slowed down in the UAE in 2017. The trend when it comes to the automotive aftermarket sector has been the reverse, with the outlook being positive up to 2020. Several key factors have contributed to this upswing including the increasing vehicle parc, the hot climates and the tough terrain. All these factors take a heavy toll on the lifespan of tyres and batteries.
Vehicle sales have been stagnating due to several economic factors like the removal of subsidies and subsequent increase in petrol prices, high cost of imports due to the appreciating value of the Japanese Yen, more stringent government regulations and a flourishing used-car market.
In spite of this, investment Advisory firm Alpen Capital remains positive regarding this sector and projects that though car sales have been under pressure in the last couple of years, the number of passenger cars will grow from an estimated 10.3 million in 2015 to 13.2 million in 2020.
Commenting on this, Asad Badami, A-MAP Managing Director said that the forecast for the UAE auto market is indeed encouraging mainly thanks to the expanding consumer base, growing disposable incomes and affordable vehicle ownership. Other factors spurring consumer interest are attractive financing options and the availability of low-cost fuel.
He added, “This is bound to have a knock-on effect on the automotive aftermarket in the UAE and A-MAP can look forward to growing interest in tires, batteries, parts, components, repairs and maintenance.”
It is estimated that the Middle East spare parts market will grow at six per cent annually to reach USD17.27 billion by 2020. The automotive aftermarket is set to show significant growth over the next three years.
Another area that is attractive growing interest from customers in the UAE is vehicle customization. The growing number of car accessory outlets springing up across the Emirates points to this trend. Many more automotive dealers have become active on social media and have started to maintain an online presence.
Vehicle manufacturing is getting added impetus in the region with the governments in UAE, Saudi Arabia and Oman providing incentives and subsidies to companies engaged in making the region a regional auto manufacturing hub by setting up manufacturing units.
A-MAP plays a leading role in the auto spare parts market in the UAE. It represents top brands in auto spare parts, particularly the popular Solite and Asimco product range. It has the competitive edge due to its strategic direct distribution business approach. Additionally, the company’s prompt and professional customer service has been a key factor in its success.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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