Automotive Aftermarket Poised for Growth in UAE Despite Subdued Auto Sales.
Although vehicle sales in the UAE have seen a downturn in 2017, the auto aftermarket sector is seeing a favorable trend preceeding 2020. This is mainly as a result of the boosting variety of lorries, hot environments and difficult roadway conditions which consequently affect the lifespan of batteries and tires.
Subdued auto sales should be seen in the light of the present demanding economic atmosphere spurred by the rise in petroleum rates, elimination of aids and the appreciating value of the Japanese Yen. The industry is further tested by higher expenses of imports, more stringent government regulations and a flourishing used-car market.
However, according to Investment Advisory firm Alpen Funding, although car sales have been under pressure in the last few years the number of automobile is expected to expand from an estimated 10.3 million in 2015 to 13.2 m in 2020.
An optimistic Mr. Asad Badami, A-MAP Managing Director said "The forecast for the UAE auto market looks motivating without a doubt. This is mostly because of the broadening consumer base, expanding disposable earnings and inexpensive vehicle possession. Include in that the appealing funding options and accessibility of inexpensive fuel. This is bound to have a ripple effect on the automobile aftermarket in the UAE and A-MAP can anticipate expanding passion in tires, batteries, components, elements, repairs and maintenance.
The Middle East spare parts market is approximated to grow six percent each year to get to $17.27 billion by 2020 and the Gulf market for auto parts is proceeding to significant development over the next 3 years.
Vehicle customization is an additional area where the UAE is witnessing a growing pattern. This appears from the expanding number of car accessory outlets emerging across the Emirates. Furthermore, there seems to be a boosting passion in social networks as increasingly more automotive suppliers are maintaining an online presence.
Another positive indication are the financial investments by the UAE, Saudi Arabia and Oman in motivations and vehicle manufacturing plants tailored to establishing a regional auto manufacturing hub.
A-MAP plays a leading role in the automobile spare components market in the UAE. It stands for leading brands in automobile extra parts, specifically the popular Solite and Asimco product variety. It has the one-upmanship due to its tactical straight distribution business strategy. In addition, the company's punctual and expert customer support has actually been a key factor in its success.
