The UAE's automotive aftermarket industry is set for strong growth over the next four years, with projections indicating it could reach $1.91 billion by 2028, largely driven by the increasing involvement of Southeast Asian automotive companies, according to a report by Glasgow Research & Consulting.
The expected expansion was highlighted at an official networking event held by Automechanika Dubai, themed ‘Strengthening Collaborations: Southeast Asia and UAE.’
The report noted that the UAE is set to experience significant growth, driven by rising vehicle ownership, technological advancements, and strong demand for vehicle parts and services across the region, Zawya reports.
A key factor behind this growth is the increasing involvement of Southeast Asian automotive companies, which now account for 5% of the market share.
Furthermore, the report highlighted that these Southeast Asian companies are playing an increasingly vital role in the UAE's automotive aftermarket, bringing valuable expertise, cost-effective solutions, and high-quality products, which are transforming the sector and driving its growth.
“As vehicle ownership continues to rise in the UAE, driven by economic recovery and infrastructure development, the demand for aftermarket parts and services is expected to surge,” said Vishal Pandey, the Director of Glasgow Research & Consulting.
“With Southeast Asian companies playing a critical role, the market is well-positioned to address the needs of the evolving automotive landscape. The focus of these companies on sustainability and advanced technologies will also help shape the industry's future, aligning with the UAE’s vision for a greener, more efficient automotive sector,” Pandey added.
In reference to the market, Mahmut Gazi Bilikozen, Portfolio Director at Messe Frankfurt Middle East, said: “Southeast Asian companies are renowned for their innovation and competitive pricing and have established a solid foothold in the UAE market.”
“With strategic partnerships and regional synergies, they are enhancing the availability of automotive components, including tyres, batteries, and mechanical parts. Their presence caters to the growing demand for aftermarket services and contributes to the local economy by fostering job creation and skills development within the industry,” he added.