- Sector set to grow at 5,1% CAGR to be worth SAR 33.6 billion by 2021
- New women drivers set to drive vehicle sales
Dubai, UAE, December 5, 2017: The Middle East's premier international trade and networking event, Automechanika, is now headed to Riyadh, capital and largest city of the region's largest automotive market, Saudi Arabia.
With the launch of Automechanika Riyadh, which will open doors for the first time in the Kingdom's capital in February next year, Automechanika has now extended its reach to cover the breadth of the automotive aftermarket in the country.
'The Riyadh edition of Automechanika, will be held every alternate year, interspersed with the Jeddah edition, will give us a wider reach across the Kingdom's vast aftermarket, especially in the central and eastern regions of the Kingdom. It will also enable international automotive aftermarket brands to gain better access to some of the most important markets and buyers in the country,' said Ahmed Pauwels, CEO of Messe Frankfurt Middle East, who are organising the event in collaboration with Saudi partners, Al-Harithy Company of Exhibitions (ACE).
Zahoor Siddique, Vice President of Ace Group, said: “ACE is pleased to expand its footprint in Riyadh with the launch of Automechanika Riyadh, importantly because Riyadh has the largest number of aftermarket companies in the Kingdom. Also this show will cater to the neighbouring Eastern Province due to its close proximity.”
When the Riyadh edition of Automechanika kicks off in February next year at the Riyadh Centre for Exhibitions, the attention of the regional automotive aftermarket will be fixed on the Saudi capital, with more than 150 exhibitors from 20 countries already signed up to exhibit products and services covering: Parts and Components, Electronics and Systems, Accessories and Customizing, Repair and Maintenance, Tyres and Batteries and Car Wash.
Worldwide interest in the Saudi Arabian automotive sector has surged, given that it is expected to sustain an impressive growth of 5.1% CAGR till 2021, when it is estimated to be worth SAR 33.6 billion in revenues. The total number of vehicles in operation in the Kingdom too, is expected to reach 10.3 million by 2021 from the 2015 level of 7.7 million, incrementally increasing the potential aftermarket.
Another factor that has tremendously excited key stakeholders in the automotive and aftermarket sectors has been the recent Saudi Arabian government decision to allow women to take to the wheel in the Kingdom. This is expected to drive up cars sales in the Kingdom quite considerably.
Currently, women form about 45% of the total Saudi population and about 10 million of them are between the ages of 15 and 64. Additionally, around 65% of the women in the Kingdom, plan to apply for a driving license as soon as the law allows it. Most significantly, around 85% of the women set to take the wheel, are planning to buy cars as soon as they hit the roads.
The resulting growth in vehicle sales - both new and used - is also expected to have a ripple effect on the aftermarket, with significant impact on demand for parts and services, procurement and repair and maintenance.
Spearheading the foray of international brands making their presence felt at Automechanika Riyadh include Launch Partners: MCB, Samir Odeh and O2Proformance. They are joined by big names such as: Japan Toyamoto Corp, Donaldson Europe, ZF Services Middle East and Blinker. The inaugural event has also attracted Country Pavilions from Germany, Italy, Spain, UK, and China.
Based our of Riyadh, Samir Odeh is one of the leading provider of parts and components across the transportation, manufacturing and industrial sectors in the Kingdom. The importance they attach to the Eastern and Central Regions of the Kingdom can be deduced from the fact that they have established their headquarters in the Kingdom in Riyadh since 1968.
Ahmed Al Hussaini, the Managing Director for the Gulf region at O2Proformance, said: “We decided to participate at Automechanika Riyadh, as the visitors fit our target market perfectly. The Kingdom's Central and Eastern regions are hugely important to us, and our product range is specifically designed to meet the needs of the regions' automotive aftermarkets.”
With a total area is 15,000 sqm, the Riyadh Exhibition Centre provides a modern and easily accessed venue, with four halls of different sizes. The complex has independent facilities for each hall for reception and registration services and security arrangements.
Warehouses, temporary storage facilities and dedicated loading and unloading areas are available for the benefit of exhibitors on the eastern side of the complex.