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Dubai’s automotive after-market industry to hit $18.5bn by 2023

Aranca data shows auto after-market sector was valued at $15-billion in 2018 as regional car parc rate crossed 21 million

The Middle East's auto after-market sector is growing.
The Middle East's auto after-market sector is growing.

Global research company Aranca revealed that Dubai’s automotive aftermarket was valued at $15bn (AED55bn) in 2018, with number projected to hit $18.5bn (AED68bn) by 2023.

In 2018, the Middle East’s car parc – a term used to describe the number of active vehicles in a region – crossed 21 million as new passenger cars sales hit one million units and commercial vehicle sales reached 270,000 units.

The car parc figure is expected to reach 27 million vehicles by 2023, which could comprise 18 million passenger cars and nine million commercial vehicles.

Aranca revealed these details ahead of Automechanika Dubai, the three-day event that will be held at Dubai World Trade Centre from 10-12 June. 

The organisers of Automechanika Dubai said that after-market vendors are also noting growth as the vehicles market expands in the region. Cyprus-headquartered Alco Filters, for instance, has noted regional expansion as demand for filtration products grows.

Managing director of Alco Filters, Loizos Louca, said that the majority of the company’s growth is backed by its exposure to the regional auto after-market.

According to Louca, demand for Alco Filters has grown by 480% since the company started participating in Automechanika Dubai. This growth coincided with its focus on the Middle East and Africa region since 2010.

Italian filtration technology and thermal management company, UFI Filters, will showcase original equipment used for both light- and heavy-duty vehicle applications at the fair. Group after-market business unit director at UFI Filters, Luca Betti, said he was hopeful of growth in the region, despite being new to the Middle East market.

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Construction Week - Issue 746
Jul 20, 2019