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Main » 2018 » January » 9 » Realigned Business Models Set to Support Companies in a Challenging KSA Automotive Parts Aftermarket
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Realigned Business Models Set to Support Companies in a Challenging KSA Automotive Parts Aftermarket

New opportunities will emerge as vehicle parc set to exceed 10 million by 2022, finds Frost & Sullivan’s Mobility team


Dubai, United Arab Emirates-Tuesday, January 9th 2018 [ AETOS Wire ]

The Kingdom of Saudi Arabia’s (KSA) automotive parts aftermarket is undergoing significant changes that are pushing companies to realign their business models with new conditions. Declining demand for new cars, growing competition, and change in brand preferences are opening up fresh business opportunities for parts suppliers, distributors, and retailers.

Frost & Sullivan’s industry docket, Auto Component Aftermarket Outlook, Saudi Arabia (KSA), 2017, finds that despite current challenges, the market is set to experience an annual growth rate of 5.9 per cent from 2017 to 2022, with over 10 million vehicles in operation by 2022. The docket shows the potential of KSA’s parts aftermarket across light, medium, and heavy vehicles, and the key forces behind future development, including vehicle sales and vehicles-in-operation changes. Additionally, it provides an insight into the existing part distribution structure, which will bring value to companies either already in the market or planning to explore the KSA parts aftermarket.

To access more information on this analysis, please click here. A macro-micro overview showcasing insights relative to global trends across industries is available for the Middle Eastern & North African (MENA) and South Asian (India) markets.

“Factors supporting medium- and long-term growth include evolving customer preferences toward leaner and more transparent distribution structures, recovering GDP, increasing motorisation rates, a growing population, and government sector diversification expenditure plans,” said Frost & Sullivan Mobility Senior Consultant Vitali Bielski.

Customers are becoming increasingly more demanding. With significant competition, aftersales activities will become a crucial differentiator. To gain a competitive advantage in an evolving market, players should:

    Adopt new business models to cater to increasingly demanding customers;
    Distributors and wholesalers should actively explore retail channels and presence online;
    Sell accessories and mobility solutions; and
    Establish quick service centres, mobile services with optimised labour rates and menu pricing.

“Fast moving parts like tires, batteries and lubricants account for the largest share of the parts market and at the same time show the highest intensity of competition attracting new brands,” noted Bielski. “In the future, there will remain strong growth opportunities for both OEM and independent aftermarket parts as private customers and fleets will seek ways to reduce total cost of ownership.”

Analysis of the “Indian Auto Component Aftermarket Outlook, 2017” is also available.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Frost & Sullivan

Anita Chandhoke, Corporate Communications - MEA

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