The Middle East Needs More Parts

The aftersales automotive industry in the GCC states may well achieve billions of dirhams because of the present trend in vehicle ownership. Experts have observed that owners keep their vehicles for longer, and the vehicle population is aging. Asad Badami, Managing Director of A-MAP a distributer of automotive parts, said, “Two primary factors are pushing growth: the vehicle fleet on the road overall is getting older, and people are generally hanging on to cars longer – this creates a vast segment of out-of-warranty vehicles requiring repairs and replacement parts.” A recent Frost & Sullivan report seems to support this notion as it forecasts a compound annual growth rate of around 13% for car parts, between 2013 and 2017. “There has also been a rapid growth in population numbers over the past year or so which has translated in an increase in the number of vehicles on the road,” Asad said. In the UAE, for instance, the number of cars per 1000 people was an estimated 470 in 2012. This number is expected to increase by 35% to 636 by 2017. The Middle East is ranked as having one of the fastest growth in the automotive products market.

Dan Tsuchiya, eBay Motors, talks to potential customers on a trip to the Middle East in 2012 image: LA Times