Monday 20 August 2018
 
»
 
»
Story

Participants at the Automechanika Academy’s Commercial Vehicles Conference in Dubai.

Dubai auto parts trade tops $12bn in 2014

DUBAI, June 4, 2015

Dubai’s trade for auto parts and accessories was valued at Dh44.37 billion ($12 billion) in 2014, a 10 per cent increase over the previous year, according to new figures released by Dubai Customs.

Imports of the Emirate’s booming automotive aftermarket trade were valued at Dh26 billion ($7 billion) last year, while the value of exports and re-exports coming out of Dubai was Dh18 billion ($4.9 billion).

“Dubai Customs has further enhanced automotive spare parts trade through an array of first-rate Customs facilitations and services provided to traders in this sector, enabling them to cater for the market needs without delay thanks to streamlined and speedy clearance procedures,” said Ahmed Mahboob Musabih, director of Dubai Customs.

“Serving a pivotal role in automotive spare parts trade, Dubai acts as liaison between Asian, European and North American manufacturing countries and the consuming markets in the region,” he added.

According to Dubai Customs, Japan (Dh6.14 billion), South Korea (Dh3.57 billion), China (Dh3.31 billion), Germany (Dh3.16 billion), and the US (Dh3.11 billion) were Dubai’s top country partners last year in terms of total auto parts trade.

Meanwhile, Saudi Arabia (Dh2.37 billion), Iraq (Dh1.08 billion), and Afghanistan (Dh800 million) were the Emirate’s biggest export and re-export markets in 2014, accounting for a combined 23 per cent of Dubai’s exports and re-exports of auto parts, accessories, tyres, and engine components for the year.

Three major trading partners claimed 49 per cent share of Dubai’s total automotive parts imports. Japan was the top destination from which Dubai’s car parts originated, claiming Dh6.12 billion of the market. South Korea followed with Dh3.55 billion worth of imports. China was the third most important import source valued at Dh3.23 billion.

The figures were announced to an audience of auto parts manufacturers, suppliers, fleet operators, and regulators at the Automechanika Academy’s Commercial Vehicles Conference, which took place on the side-lines of the Automechanika Dubai 2015, the Middle East and Africa’s largest automotive aftermarket trade show, featuring 1,889 exhibitors from 59 countries at the Dubai International Convention and Exhibition Centre. The event concludes today (June 4).

The conference put a spotlight on the surge of demand for commercial vehicles in the GCC, fuelled by increased government expenditure on infrastructure, growing economies, and robust crude oil exports.

According to global analysts Frost & Sullivan, 115,171 trucks and buses were sold in the GCC in 2014, bringing the total number of commercial vehicles on the region’s roads to 1.2 million.

The 1.84 million light, medium and heavy commercial vehicles expected to be operational in the GCC by 2020 has in turn created a big demand for the CV spare parts market, which was valued at $3.38 billion in 2014, and likely to reach $5.49 billion by 2020, growing 8.4 per cent annually.

Subhash Joshi, regional head for Automotive & Transportation in Mena at Frost & Sullivan, said: “Crude oil price is the most important factor controlling growth of economy in the GCC, and good economic growth drives government investments, resulting in higher commercial vehicle sales.”

“Increasing population and rising per capita incomes are also driving higher consumption of goods, and the GCC economy is highly dependent on imports for these goods.  Any growth in consumption patterns will lead to more transportation and logistics activities, resulting in higher demand for trucks and buses,” he added.

A total of 891 out of 1,889 exhibitors at the three-day event have truck spare parts, equipment and services within their product portfolio, a massive 76 per cent increase over the previous year.

According to Frost & Sullivan, Saudi Arabia and the UAE dominate the Gulf region’s CV auto components market, accounting for a combined 84 per cent regional market share in 2014.

Saudi Arabia’s CV Spare Parts demand was valued at $2.05 billion in 2014, and projected to be worth $3.65 billion by 2020, while the UAE’s $800 million market in 2014 is expected to reach $1 billion by 2020.

Maintenance (filters, spark plugs, belts, brakes and shoes/linings) and Mechanical Parts (pumps, alternator, thermostat, starters and absorbers) account for 72 per cent of the market, while there’s also high demand for collision parts in the UAE, Saudi, and Kuwait. – TradeArabia News Service




Tags: Dubai Customs | Automechanika | Commercial vehicles |

More Motoring Stories

calendarCalendar of Events

Ads