In the coming years, while the global automotive landscape shifts towards adopting modern tech-driven alternatives, the Middle Eastern industry will have a sizeable impact on the regional aftermarket with big data and analytics playing a pivotal role in how the automakers and other players of the market optimise their value chain.
Speaking at the Automechanika Network in Riyadh, Project Manager for Automotive and Transportation at research advisory firm Aranca, Vishal Sanghavi said that future megatrends such as shared mobility, electrification, connectivity and self-driving vehicles will lead to a big shift in the redistribution of profits across the value chain.
Manufacturers could benefit by focusing on developing more connected car solutions, as connectivity is expected to be the fastest growing mobility trend in the region.
“The global automotive industry is undergoing massive transformation and the Middle East is no exception to this change,” said Sanghavi. “Big data and analytics will enable aftermarket players to optimise the value chain end-to-end based on predictive maintenance while new technology providers will become an integral part of the automotive value chain.”
Higher demand for shared mobility will call for higher vehicle utilisation which is expected to drive aftermarket revenues to spare parts and repairs. Sanghavi also explained how manufacturers could benefit by focussing on developing more connected car solutions, adding that connectivity is expected to be the fastest growing mobility trend in the region.
Major automakers around the world are tweaking their traditional platforms or creating new ones to accommodate an electrified powetrain.
“Advanced telematics solutions, vehicle-to-vehicle connectivity technologies and infotainment solutions are some of the most sought after innovations in the Middle East,” said Sanghavi.
On a similar note, General Manager of YallaMotor.com, Jorge Bialde who also spoke at the expo explained how the aftermarket businesses can leverage online tools to better engage with customers. “It’s clear that digitalisation and e-commerce will reduce the current frictions and bring more transparency to the purchase phase,” he said.
In Dubai, the exhibition is expected to open its doors this June and more than 1,800 exhibitors from 61 countries are expected to be part of the show. The event will cover six product sections including Parts & Components; Electronics & Systems; Accessories & Customizing; Repair & Maintenance; Car Wash, Care & Reconditioning; and Tyres & Batteries. In addition to this, this year’s edition will also feature four new sub-sections of Agricultural Parts and Equipment; Body & Paint; Motorcycle Parts & Components; and Oils & Lubricants.