Automechanika Dubai 2017, the largest regional automotive aftermarket, was held at the Dubai International Convention and Exhibition Centre from May 7-9th 2017. The three day event was thronged by global and local companies who participated from around the world. The event, which was the largest in the Middle East is important for companies who hope to be a part of the proposed growth of 4.9% by 2021 in the sector. The net increase in valuation is to be around $14.8 bn during the period.
The 15th iteration of the event was inaugurated by the Director General as well as Chairman (Board of executive directors, Dubai RTA), Mattar Al Tayer. In the event, around 1,954 exhibitors participated spanning 57 countries.
The three-day event had pavilions of 25 countries and 36 international trade associations, with an approximate 50% of the 30,000 plus visitors coming from outside the country.
Automotive parts manufacturers from Germany, Korea, India, etc. worked to showcase the potential of their country while being backed by their respective governments. More than 2,000 exhibitors worked tirelessly on the 15th edition exhibition. The show covered six sections of the auto parts industry, mainly, tires and batteries, parts and components, electronics and systems, accessories and non-oil, repair and maintenance, and car care, wash and reconditioning.
Indian automotive industry already contributes to more than 160 countries in the world and are expected to reach a figure of $70-80 billion by the year 2026. In the 2006-16 period, the exports from the automotive industry registered a high growth of 14% Compound Annual Growth Rate, thus, increasing to $10.81 billion from $3.2 billion earlier.
Some estimates point that by 2020, a total of around 44.5 million passengers and 1.8 million commercial vehicles will be plying on the Middle Eastern roads. The increased number of cars in Dubai road will lead to increased production of auto parts. This is the market that the parts manufacturers are looking to be a part of.
UAE’s economy has been slated to start recovering in the year 2017-18 due to the country’s strong balance sheet as the UAE has had a better and proactive record as compared to other GCC states. Even though the oil prices have been low in the past some time, yet UAE has been one of the best performing economies recently.
India And UAE Trade
India and UAE have had a long trade relationship with India being considered as the UAE’s primary business partner, with a partake of about 9.8 percent of total non-oil trade. UAE exports about 14.9 percent of all of its goods and 8.7 percent of re-exports to India, leading to India becoming the largest importer of the country. UAE also is a significant exporter from India, with India exports accounting for 9.2 percent of the imports that UAE receives, thus, leading to India being the third largest exporter to UAE.
The platform allows India’s Automotive Component Manufacturers Association(ACMA) and EEPC to send a strong message to countries around the globe regarding India’s potential in the auto components sector. India Brand Equity Foundation(IBEF) is the branding partner for the participation of India at the event.
India’s presence has been bolstered due to the Brand India Engineering campaign run by the Department of Commerce of the Indian Government. The initiative from the government hopes to improve and increase global awareness about Indian services and engineering products. Keeping this in mind, India was also the country pavilion partner at Automechanika Dubai 2017.
India’s Global Competitiveness
India’s global competitiveness has been the result of favorable government policies, geographical proximity with important automotive markets like the Middle East and Europe, highly skilled engineering workforce, and enhanced manufacturing capabilities. All of these work in India’s favor as it emerges as a reliable exporter of auto components.
India is a cost efficient manufacturing hub that has been emerging as a preferred global source base for high-quality auto components. India has the highest number of Deming and Grand Deming Awards apart from Japan with a total of 16 Deming and 2 Grand Deming awards. Due to increased localizations of the Original Equipment Manufacturers(OEM), India is fast turning into a preferred product designing and engineering hub, especially for emerging markets around the globe.
India Auto Components Industry GDP And Manufacturing Contribution
India’s auto components industry is accountable for around 4 percent of the India’s Gross Domestic Product(GDP) and employs over 1.5 million people from around the country. This number will be further improving leading to more employment. Increased investment in engineering, new product development, and R&D will help boost India’s placing as one of the leading global suppliers for the automotive parts industry.
India has been working hard to display its potential and skilled manufacturing sector in a variety of ever expanding the global industry. This participation in Automechanika Dubai 2017 bears testament to the same.