Business & Money | Tuesday 31 January, 2017 1:33 pm |

 International manufacturers, industry experts and transport, fleet and logistics decision makers from Saudi Arabia’s automotive service industry shared the stage as the Kingdom’s dedicated aftermarket trade exhibition got underway today (31 January).

 

Running for three days at the Jeddah Centre for Forums & Events, Automechanika Jeddah 2017 is expected to reinforce fresh optimism in an industry that, according to new research, will start the road to recovery in 2017, with continued growth at least up to 2021.

 

An industry whitepaper released on the side-lines of the show by analysts Frost & Sullivan (F&S) estimates that total revenues in the Kingdom’s automotive aftermarket will grow 5.1 per cent annually over the next five years, reaching SAR 33.62 billion (US$8.9 billion) in 2021.

 

Key drivers include a growing vehicle population, (from 7.7 million in 2015 and likely to reach 10.3 million by 2021), while the spend on parts and accessories per car are also likely to rise as the average vehicle age increases from 6.9 years in 2015 to 7.5 years by 2021. 

 

According to F&S, major revenue by 2021 is expected to be generated by regular maintenance parts such as tyres (SAR 10.5 billion), batteries (SAR1.56 billion) and lubricants (SAR 6.01 billion), while brake pads are expected to account for almost 25 per cent of ‘other parts’ category (SAR15.550 billion).

 

All this will be welcome news to the 174 exhibitors from 25 countries at Automechanika Jeddah 2017, which was opened by Mazen Baterji, the Vice President of the Jeddah Chamber of Commerce & Industry.

The global popularity of the dedicated trade show is underlined by the fact that 72 per cent of exhibitors that participated in the inaugural edition 12 months ago have retuned this year.  The 2nd edition features the launch of a European Pavilion which debuts alongside other new country pavilions from the USA, Korea, Hong Kong, while returning pavilions Turkey, China and Taiwan.

 

Jointly organised by Messe Frankfurt Middle East and Al-Harithy Company for Exhibitions (ACE), Automechanika Jeddah 2017 spans 8,898sqm.  Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “With nearly eight million passenger vehicles and 600,000-plus commercial vehicles plying its roads, Saudi Arabia presents some impressive opportunities for suppliers of auto parts and accessories.”

 

“The Kingdom’s growing youthful population, rising disposable income levels, and a post-oil future with a more diversified economic outlook should bode well for all industries, including automotive.

 

“In Automechanika Jeddah 2017, we’re providing 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.”

 

Automechanika Jeddah features some of the biggest names in the aftermarket business, including Barcino Tyre Company from Spain, Italian manufacturer Le. Ma; Dongnam Corporation from Korea, and US-based Dana, a global leader in highly-engineered driveline, sealing, and thermal-management technologies. 

 

Dana is showcasing its Spicer driveline and Victor Reinz premium sealing products for the light, commercial, and off-highway vehicle aftermarkets. Dana is presenting its GWB industrial driveshaft products, developed specifically for the Middle East. Automechanika Jeddah 2017 marks the first time that Dana presents a complete driveline package with axle, transmission, and driveshaft applications.

 

Elsewhere, Deutsche Ölwerke Lubmin is one of Germany’s most modern lubricant factories, and is looking to establish new business partners at Automechanika Jeddah 2017 for private labelling while it’s also showcasing its own brands. 

 

Andreas Koehler, Sales Manager at Deutsche Ölwerke Lubmin, said: “We’re able to develop and produce high-performance, innovative lubricants for a variety of applications, and all our products meet national and international standards.  Our products are ‘Made in Germany’ and we want to spread quality in Saudi Arabia.”

Automechanika Jeddah is being staged in tandem with the Automechanika Academy's Automotive Aftermarket Symposium on 1st February, creating a dual platform with a double focus on Saudi Arabia’s spare parts, maintenance and repair markets for both commercial and light vehicles.

 

The exhibition is divided into six main product groups of Parts & Components, Electronics & Systems, Accessories & Customizing, Repair & Maintenance, Tyres & Batteries, and Car Wash, Care & Reconditioning.

 

Automechanika’s global Truck Competence initiative has also gained traction at the Jeddah instalment, with more than 50 per cent of exhibitors showcasing a range of products that span the entire commercial vehicle value chain, from parts and accessories, workshop equipment, to body repair and care.

 

Hadi Al-Harith, Managing Director of ACE, said: “The strong industry response to Automechanika Jeddah 2017 underlines the potential in the Saudi market for quality automotive aftermarket products and services.  Total market revenues for the Kingdom’s automotive aftermarket according to Frost & Sullivan was valued at SAR25 billion in 2015, and as we can see, the future looks bright.

 

“Automechanika Jeddah 2017 delivers an unmatched platform for the world’s leading auto aftermarket suppliers and manufacturers to establish long-lasting business relationships with buyers and distributers from Saudi’s Western region