Dubai auto parts and accessories trade valued at AED44.37 billion in 2014 Dubai Customs

Dubais trade for auto parts and accessories was valued at AED44.37 billion in 2014, a 10 per cent rise over the previous year, new figures released by Dubai Customs have revealed today.
Imports of the Emirates booming automotive aftermarket trade were appreciated at AED26 billion last year, while the value of exports and re-exports coming out of Dubai was AED18 billion.

Commenting on these figures, the Director of Dubai Customs, H.E. Ahmed Mahboob Musabih specified: Dubai Customs has further enhanced automotive spare parts trade through an array of first-rate Customs facilitations and facilities provided to traders in this sector, enabling them to cater for the market needs without delay thanks to streamlined and speedy clearance procedures. This comes in line with the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in regard to diversifying the texture of national economy.
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.

H.E. Ahmed Mahboob further noted, The development achieved by Dubai in all fields, particularly in transport infrastructure with progressive and world-class road networks, ports, and airports, is one of the basic factors that promote the Emirate's aptitude to attract larger share of the world trade. Dubai is the destination of choice for trade exhibitions locally and globally. And with Expo 2020 looming closer, everything is being set ready by putting in place sophisticated services and facilities to deliver to the world what would be the best mega exhibition experience in history, H.E. Ahmed Mahboob added.

According to Dubai Customs, Japan (AED6.14 billion), South Korea (AED3.57 billion), China (AED3.31 billion), Germany (AED3.16 billion), and the USA (AED3.11 billion) were Dubais top country partners last year in terms of total auto parts trade.

Meanwhile, Saudi Arabia (AED2.37 billion), Iraq (1.08 billion), and Afghanistan (800 million) were the Emirates biggest export and re-export markets in 2014, accounting for a combined 23 per cent of Dubais exports and re-exports of auto parts, accessories, tyres, and engine components for the year.
Three main trading partners claimed 49% share of Dubais entire automotive parts imports. Japan was the top destination from which Dubais car parts originated, claiming AED6.12 billion of the market. South Korea followed with Dh3.55 billion worth of imports. China was the third most important import source valued at AED3.23 billion.

The statistics were publicized to an audience of auto parts manufacturers, suppliers, fleet operators, and regulators at the Automechanika Academys Commercial Vehicles Conference, which took place on the side-lines of Automechanika Dubai 2015.

The Dubai auto-parts statistics update was provided by Nasim Saeed Al Mehairi, Senior Manager for Statistics and Studies Section at Dubai Customs. These figures further reinforce Dubais status as the epicentre of regional automotive aftermarket trade.

The Automechanika Academys Commercial Vehicles Conference attracted a unique gathering of regulators and key thought leaders in the commercial vehicles sales, servicing and aftermarket industry, addressing the latest regional developments and trends.

It 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 regions 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 US$3.38 billion in 2014, and possible to reach US$5.49 billion by 2020, growing 8.4 per cent annually.

Subhash Joshi, Regional Head for Automotive & Transportation in the Middle East and North Africa at Frost & Sullivan, spoke about the tendencies and chances in the GCC CV market, as crude oil exports and economic pointers point toward an accelerated growth path.

Crude Oil Price is the most significant factor controlling development of economy in the GCC, and good economic growth drives government investments, resulting in higher commercial vehicle sales, said Joshi.

Increasing population and growing 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 extra transportation and logistics activities, resulting in higher request for trucks and buses.

The rise of the regional commercial vehicles business and relating demand for CV auto parts and services will come as good news to the Truck Competence exhibitors at Automechanika Dubai 2015.

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 regions CV auto components market, accounting for a combined 84 per cent regional market share in 2014.

Saudi Arabias CV Spare Parts demand was valued at US$2.05 billion in 2014, and projected to be worth US$3.65 billion by 2020, while the UAEs US$800 million market in 2014 is expected to reach US$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 theres also high demand for collision parts in the UAE, Saudi, and Kuwait.

Other popular speakers at the Automechanika Academys Commercial Vehicles Conference included Tariq Al Falahi, Section Head for Freight Planning at the Abu Dhabi Department of Transport; and Herbert Lonsdale, International Business Development Manager at the Institute of the Motor Industry.

Taking place from 2-4 June at the Dubai International Convention and Exhibition Centre, Automechanika Dubai 2015 is the Middle East and Africas largest automotive aftermarket trade show, featuring 1,889 exhibitors from 59 countries.

The annual showpiece event has firmly established itself as the must-attend trade show for the regional automotive aftermarket, and is expected to attract more than 29,000 trade visitors from 130 countries.