Automotive Aftermarkets Middle East 2005 flagged off at DWTC

The Exhibition, which has already gained traction with the participation of over 200 leading global contenders from all sectors of the automotive industry, took off the start line following the inauguration by Mr. Juma Al Majid, Founder and Chairman, Juma Al Majid group at two spacious Halls of the Dubai World Trade Centre (DWTC). Among those assembled at the opening ceremony were high-ranking personnel from the local, regional and international automotive trade, visiting businessmen, automobile professionals and officials from various levels of the Government and DWTC Executives.

The Exhibition organized under the auspices of International Expo Consults, already gaining momentum as a high profile and prolific exhibitions organizer and convener, is a premier tradeshow for a wide ambit of Automotive Aftermarket sectors that include automobile spare parts, equipment, tyres, motorcycles, batteries and garage equipment for the Middle East and the African Continent. This largely B2B Show has participating companies drawn form over 20 countries and is expected to draw over 6000 industry dedicated business visitors hailing from over 30 countries.

In opening remarks directed to the Press and Exhibition participants, Mohammed Falaknaz, Vice President, International Exhibition Consults emphasized the growing potential of this booming and lucrative sector in the region. 'The UAE has the distinction of being the second largest market for second hand cars in the world,' noted Falaknaz. 'The increasing longevity of the average imported car of up to 10 years contributes to the market growth for auto parts,' he added. The harsh weather conditions in the region takes a toll on the lifespan of the automobiles and coupled with high usage owing to relatively low and affordable fuel costs, makes this area a 'boom market'. Current projections of the size of the Automobile Aftermarket is in the region of AED 18 billion (USD $ 5 billion) annually.

The Exhibition acquires considerable significance in the light of the region's phenomenally high ownership and density of vehicles. It is estimated that the GCC (comprising Saudi Arabia, Kuwait, Qatar, Oman, Bahrain and the United Arab Emirates) has over 6.24 million vehicles. Almost 2 million vehicles are registered in the UAE alone. The growth rate is projected at 10 % per annum.

A subject of focus and deliberations at this year's event will be the subject of counterfeits which is gnawing away at both the industry's credibility and profitability. The market has been growing at a conservative 10% and auto parts constitute one of the top ten re-exported commodities from the UAE. According to Falaknaz, 60% of the Aftermarket imports are redirected to the huge emerging markets of Iran and Iraq. The cessation of hostilities in the latter will generate a huge potential that will set business skyrocketing for the business in Dubai, stressed Falaknaz.

The Exhibition has already received considerable acceleration in the form of enhanced participation from China. The Chinese contingent is by far the biggest and underscores the importance of the country in the automotive aftermarkets trade in the region. Chinese companies are keen to make their mark and 'or consolidate their presence in the region and the Exhibition provides the perfect showcase for their products and services. According to David Wang, Co-Coordinator of the Chinese Pavilion, this year's participation is the biggest showing at Automotive Aftermarkets Middle East (AAME), a distinct 20% increase in exhibition area space vis-à-vis last year's attendance. 'We are hopeful of doing a turnover in excess of US $ 10 million through this event,' opined Wang reflecting the sentiments of the country's delegation that hopes to derive maximum mileage from their participation at the Exhibition. 'This Show is our springboard to offer our products, services and technologies to the emerging markets in Africa, the Commonwealth of Independent States (CIS), the Indian Subcontinent and other countries of the Middle East,' observed Wang.

Some of the key exhibitors include Cartsmart Manufacturing Ltd., Hong Kong; L & D Aromaticos of Spain; Duram Trading FZC, UAE: Iran Khodro Investment Development Company, Iran; Multi Tech Engineering Company, Pakistan; P T Distributors Sdn. Bhd., Malaysia; Success International (Pte) Ltd., Singapore and Suri Products Ltd., India in addition to the National Pavilions from China, Taiwan and Turkey.

The race has only begun to tap the enormous potential of the growing Middle East markets for regional and international competitors. The Exhibition will provide the perfect platform for participants to recharge and redirect their strategies and drive to win big-ticket orders and contracts.