ME market for tyres and batteries set to top Dhs40 billion by 2024

Business Business, Gulf Today

Tyres and Batteries will continue to form one of the most significant segments of the automotive aftermarket in the Middle East and Africa, a fact that is reflected by the strong turnout at Automechanika Dubai 2019.

Exhibitors showcasing tyres and batteries will make up the second largest section at the region’s premier automotive aftermarket trade event, with more than 230 of the 1,800plus exhibitors overall taking up 14,000 sqm of space at the Dubai international Convention and Exhibition Centre.

This represents a 10 per cent larger presence over last year, underlining the sector’s continued primacy in the regional automotive aftermarket.

“Over the past five years, Tyres and Batteries has consistently grown in size at Automechanika Dubai, with exhibitor numbers growing at a CAGR (Compound Annual Growth Rate) of nine per cent and exhibition space correspondingly increasing by seven per cent CAGR,” said Mahmut Gazi Bilikozen, Show Director for Automechanika Dubai.

“This indicates the continuing demand for tyres and batteries in the wider Middle East and Africa, and the confidence international brands have in Automechanika Dubai as the ideal platform to reach out to this thriving marketplace.” Tyres made up 26 per cent of the auto aftermarket in the Middle East, valued at $7.3 billion in 2018 according to analysts TechSci, who estimate that the market would reach $10.2 (Dhs40 billion by 2024). Meanwhile battery sales in the aftermarket are expected to be worth $80 million by 2024, up from $56 million in 2018.

The story is similar in Africa with the market for tyres worth $8.2 billion in 2018, making up 25 per cent of the total aftermarket of $33.1 billion.

By 2024, the tyre market is expected to reach $12.4 billion. Battery sales in 2024 are expected to touch $111 million in 2024, as compared to the 2018 figure of $73 million. TechSci also revealed that car owners in the Middle East purchase new tyres every 40,000 km on average, while in Africa, tyres were replaced at 50,000 km.

Given the overall positive sentiment in the market and the outlook continuing to be promising, it’s not surprising that exhibitors are optimistic about exhibiting at Automechanika Dubai 2019.

For instance, Peter Cross, General Manager for Davanti Tyres, said, “Our goal is to increase brand awareness and enter into meaningful conversations with distributors across the world, to increase the number of countries where Davanti is available from its current number of 50.

“We’ll take part in Automechanika Dubai this year to showcase our entire range of Davanti tyres, including our newest addition, the all-terrain Terratoura, our expanded Wintoura winter range, our UHP DX640, SUV and HP tyre DX740, light commercial van tyre DX440, standard passenger car DX390 and small passenger car DX240.

“Currently the tyre sector in particular is going through a period of consolidation and vertical integration in manufacturing and distribution, which is leading to price stability.

“Distributors are increasingly focusing on tyre manufacturers that deliver long-term profit prospects through comprehensive brand strategies, rather than constantly trying to capitalise on short-term advantages created by factories competing on price, global oversupply and volatile raw material price fluctuations.

“The result is that distributors are better able to implement their business growth strategies and develop partnerships with manufacturers to increase revenues and influence product development,” Cross stated.

Turkish battery manufacturing major Mutlu Akü will be present in strength at Automechanika Dubai with a full range of products to showcase to the region’s trade buyers. Local Sales Strategic Marketing Director, Hakan Okur said, “With our existing production capacity of six million batteries per annum, Mutlu serves to major OEMs and aftermarkets in more than 70 countries.

“The Middle East is one of the company’s strategic markets, which is why participating at Automechanika Dubai is so important to us.” “Mutlu Akü is part of Metair International Battery, a member of Metair group, and have active operations in Romania, United Kingdom, Kenya and South Africa. We’ll be showcasing: Automotive; SFB - Superior Flooded Battery, EFB (Start - Stop) and AGM (Start - Stop) Commercial; SFB - Superior Flooded Battery; Leisure batteries; SFB – Marine, Full Energy and Gel Lithium-Ion Technology batteries.

“Our batteries are designed and manufactured to work in the severest climate conditions. Since the company has been exporting to more than 70 countries, we have designed our products to work optimally in extreme climates such as found in the UAE, Saudi Arabia, Qatar and extremely cold climates, such as in Russia and Ukraine,” Okur added.