Automechanika Jeddah targets $8.9bn Saudi industry
Saudi automotive aftermarket event Automechanika Jeddah looks towards 5.1% annual growth in the segment through to 2021
The second Automechanika Jeddah exhibition has kicked off in Saudi Arabia, aimed at the Kingdom’s automotive aftermarket, which is expected to grow 5.1% annually over the next five years to reach $8.9bn in 2021, according a report by Frost & Sullivan (F&S).
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 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 ($2.8bn), batteries ($416m) and lubricants ($1.6bn), while brake pads are expected to account for almost 25% of other parts ($4.15bn).
The show’s global Truck Competence initiative has also gained traction in the second instalment, with more than 50% of exhibitors showcasing a range of products that span the entire commercial vehicle value chain, from parts and accessories to workshop equipment and body repair.
Some 174 exhibitors are attending this year’s exhibition from 25 countries – 72% of them returning exhibitors who participated in the inaugural show 12 months ago.
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.”
Jointly organised by Messe Frankfurt Middle East and Al-Harithy Company for Exhibitions (ACE), Automechanika Jeddah 2017 spans 8,898m2.
Hadi Al-Harith, MD of ACE, added: “The strong industry response to Automechanika Jeddah 2017 underlines the potential in the Saudi market for automotive aftermarket products and services.”