Dubai, UAE: Automechnika Dubai, the Middle East’s largest international trade show for the automotive aftermarket industry, which runs at Dubai World Trade Centre (DWTC) until Thursday (December 16), was officially opened today by His Excellency Mattar Al Tayer, Director General, Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA) & Commissioner General for Infrastructure, Urban Planning and Well-Being.
Lifting the hood on a rapidly transforming and maturing sector where digitization is the new driver, the 18th edition of the show, organised by Messe Frankfurt Middle East, has exhibitors from 47 countries and 12 national pavilions all demonstrating just how far the sector has come in its technological transformation and signaling more change ahead.
“Technology advances are impacting all segments of the industry and are in evidence across all the show’s six sectors,” explained Mahmut Gazi Bilikozen, Show Director of Automechanika Dubai.
“This represents a seismic shift in the regional industry, which is advancing rapidly in terms of service provision, product innovation and professional standards. This is an industry which has now come of age.
“Compared to 2019, we have seen a 40 per cent increase in senior management and an 18 per cent increase in procurement and purchasing personnel pre-registering for the show – another signal of increased business activity and interest in finding new partners,” added Bilikozen. “Visitors have also pre-registered from 143 countries, so we’re expecting plenty of activity over the next three days.
Spread across eight DWTC halls, Automechanika Dubai features six sectors: tires & batteries; car wash, care & reconditioning, repair & maintenance; parts & components; electronics &systems as well as accessories & customization.
For the first time, the show will feature a comprehensive awards ceremony recognising excellence in products, services, personnel and training within the regional industry and a Tools & Skills Challenge - an action-packed live stage where workshop specialists can demonstrate their skills in tire changing, tire mounting and smart dent removal.
A Greener industry
The scale of transformation impacting the sector has been summed up by Romanian show newcomer Wemzer Industries, which says the sector is now increasingly aware of its need to contribute to global ‘greener world’ endeavors.
With Wemzer now producing OEM specified standard ceramic and carbon-free products, the company’s Managing Director Amin Uz Zaman identified additive manufacturing, remanufacturing, e-commerce, hybrid / electric drive trains and mobility as a service as the new sector drivers.
“The automotive aftermarket is undergoing big disruption,” he said. “With electrification and digitisation driving change, we are reshaping the way customers, automotive suppliers, and industry stakeholders think of cars and driving and how business in the automotive aftermarket is conducted and value is created.”
The massive penetration of internet connections and smartphones has driven the customer’s expectation for a seamless, comfortable, and most importantly a transparent shopping experience. The automotive industry was probably delayed in embracing this transformation, but the pandemic accelerated the process and now we are witnessing a massive digitization of the industry.”
Unprecedented growth expected
Despite setbacks due to the impact of the Covid 19 pandemic, Wemzer Industries believes the aftermarket is poised for unprecedented growth.
“There may be challenges related to supply chain, but we have positive indications for economic recovery across our target markets. The automotive aftermarket revenue is anticipated to record US$ 800 billion by 2027, according to the most recent study by Global Market Insights Inc. It is a well-known fact that the global automotive industry is dynamically expanding,” said Zaman.
“Digitalisation has recently taken an exponential pace. There are certainly dimensions that are yet to be revealed. It is a revolutionary transformation of the business and its value chain, requiring the integration of new layers and partnerships with new enablers to complete the transformation that goes beyond offering a seamless omnichannel shopping experience.”
And with industry analysts forecasting the GCC’s automotive parts retail revenue will grow at a compound annual growth rate of 5.8% to US$6.84 billion in 2025, there’s much at stake for industry players facing greater than ever competition.
Keys to success are being outlined at the Automechanika Dubai Academy where experts are probing the industry’s region outlook, the impact of electrification within the GCC, digital trends, sector diversification and fourth industrial revolution outcomes.
More information is available at www.automechanikadubai.com
Dubai, UAE: While experts in the automotive market believe a full recovery could take up to four years, many market analysts and industry leaders have already seen green shoots, spurred on by the implementation of digital tools and the region’s COVID-19 vaccination efforts.
That was the message delivered at yesterday’s (25 May) Automechanika Dubai Network, a one-day hybrid event that brought the region’s biggest players together under a central theme of ‘Let’s Talk Business: Adaptation & Innovation During COVID-19’.
Leading the morning’s sessions was Vishal Pandey, Automotive & Mobility Practice, at Glasgow Consulting Group who presented ‘The State of the Automotive Market in COVID and post-COVID Times’, believing regional government’s initiatives have been critical to boosting the economy.
He said: “KSA and the UAE have managed the pandemic particularly well. They have taken the lead on various measures and austerities that have driven and supported the economy.
“And while we saw the passenger car market dip significantly in 2020, with an expected revival by 2022, it is the introduction of new service models – relying heavily on ecommerce, digitalisation and customer relations – that could offset the impact of the pandemic on the industry.
“Digitally-enabled experiences and access to services that evolve the customer’s expectations have helped rebuild confidence in the industry and generate sales. This means the passenger car market is on track to reach pre-COVID levels by 2025.”
In the session led by Harmeet Singh, After Sales Director at Al Masaood Automobiles, he highlighted figures from a recent survey to decipher customer preferences for digital dealership platforms.
“Like the rest of the industries, the automotive market has adapted to the new changes to ensure business continuity. We focused on rolling out our innovative digital solutions and digitising our operational processes.
The survey uncovered that 95 percent of respondents expected both real time availability of vehicles and prices of cars and services to be displayed, 73 percent expect real-time communication and 63 percent wanted the option to pay for services through the digital platform,” said Singh.
“We further leveraged our digital channels to provide sales and after-sales services and added further simplicity and convenience to our customers’ experience. Our aim was to ensure the uninterrupted delivery of our services without comprising the health, safety, or convenience of everyone,” he added.
Organised by Messe Frankfurt Middle East, the Network took place ahead of this year’s Automechanika Dubai which will take place from 14-16 December 2021 at the Dubai World Trade Centre.
Mahmut Gazi Bilikozen, Automechanika Dubai’s Show Director, said, “How companies and organisations have reacted and adapted to the sweeping changes brought on by the COVID-19 pandemic has already proven the industry’s resilience. With the wider automotive market on its way to recovery, Automechanika Dubai aims to drive the back-to-business message across all participants of the show later this year.”