Saudi Arabia’s foremost auto aftermarket trade fair opened on Tuesday in Jeddah, with more than 80 exhibitors from 15 countries tapping into the Kingdom’s auto services and spare parts market, which is estimated to grow six percent annually over the next five years.
The show was opened by Mazen Batterjee, vice chairman, Jeddah Chamber of Commerce and Industry (JCCI), in the presence of Hadi Al-Harith, CEO of ACE Group, and Mahmut Gazi Bilikozen, Automechanika Jeddah show director.
The event ran until Wednesday at the Jeddah Hilton Hotel.
According to global research company Aranca, Saudi Arabia’s car parc (the number of vehicles in a region) stood at 7.7 million in 2018, with 350,000 new passenger cars and 115,000 new commercial vehicles sold for the year. Around 10.5 million vehicles will ply Saudi roads by 2023, including 6.85 million passenger vehicles and 3.65 million commercial vehicles.
The upshot will be felt keenly by industry professionals in the Kingdom’s spare parts and related auto services market, which is expected to be worth $10.15 billion in 2023, compared to $7.6 billion in 2018.
“Automechanika Jeddah 2019 arrives as the Saudi automotive sector undergoes a sizable transformation,” said Bilikozen.
“One of the big developments in recent months has of course been the lifting of the ban on women’s driving, and as a result, since June 2018, more than 40,000 driving licenses have been issued to women across the Kingdom.
“Reports also indicate that 20 percent of the female population, or 3 million drivers, are expected to be added to Saudi roads by 2020, and so not surprisingly, vehicle parc will also grow. With this new customer segment, the flow-on effect will be felt in the aftermarket, not only in terms of rising demand for spare parts but also in related auto services.”
Al-Harith, CEO of ACE Group, added: “Over the last two editions, the Automechanika brand has established itself as the leading and only exhibition catering to the automotive aftermarket providing a singular opportunity to this industrial cluster supporting the indispensable and expanding requirements of Saudi Arabia.”
The two-day event brought together thousands of Saudi workshop owners, distributors, retailers, traders, importers, manufacturers and suppliers from across the globe.
Tetyana Bianchino, managing director of Armolan Middle East, said its sales in the Kingdom has vastly improved since women have been allowed to drive. “That change (allowing women to drive) was so important for our business and our Saudi sales records have improved almost 60 percent since that time (June 2018),” he said.
“Customer satisfaction is our highest priority, and that’s why we’re doing our best to reach our customers by attending Automechanika Jeddah. Saudi Arabia is full of opportunity, and the best way to improve sales performance is to participate in these types of shows to inform and educate the market about our products and solutions,” Bianchino added.
Another US-based exhibitor this year was Giant, a manufacturer of premium quality metallic and ceramic non-asbestos disc brake pads. Eli Youssian, vice president of Giant Manufacturing, said: “Giant’s market in Saudi Arabia has been increasing rapidly and we’re seeking to expand our participation with new potential and current distributors.”
“Car sales are expected to grow by nine percent per annum until 2025, boosted by women drivers, thus the highly competitive auto parts market will benefit and grow given the substantial new customer segment,” he added.