Automotive Industry in the UAE
In 2015 the light vehicle sales in the GCC region surged to 1.8 million in conjunction with the solid economic growth by virtue of growing oil prices, significant government spending and private sector activities. In the UAE alone new vehicle sales are projected to increase following the request of the Ministry of Economy addressed to local car dealers to decrease prices so as to become more competitive in comparison with the foreign dealers. The positive forecast for long-term sales is also influenced by the planned amendments of the financing procedures and regulations.
Along with the new vehicles segment, the spare parts sector proliferates in the GCC countries. The GCC region is the leading spare parts industry player in the Middle East with the estimated Compound Annual Growth Rate (CAGR) of 6.5%. The UAE together with Saudi Arabia comprise the two major participants of the spare parts market in the GCC with over 72% of the market share.
The Supply Chain in the UAE Automotive Industry
Major Channels of Spare Parts Supply in the Middle East
IT Solutions for the Automotive Industry
The shift to e-commerce becomes more and more exponential in the UAE automotive industry. As many as 65.5% of vehicle buyers in the UAE state that online research is the first stage of their buying decision process. This trend will be also gaining ground in the spare parts area. In the light of such a strong online tendency, B2B and B2C e-commerce platforms offer tangible sales opportunities to manufacturers and importers of vehicles and spare parts in the UAE.
With the in-depth understanding of trends and tendencies in the UAE’s automotive industry coupled with the inside out knowledge of the supply chain management in this particular sector, we won’t let you miss the infinite opportunities that business automation creates.
*Source: Emirates NBD, RAK Investment Authority
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