Aftermarket of Saudi Arabia reach $8,8 bln to 2021
Saudi Arabia’s automotive aftermarket is on track to reach SR33 billion ($8.8 billion) by 2021 with the increase in vehicles in operation (VIO) despite the dip in new vehicle sales in 2016, and unstable demand forecast for 2017, a report said.
Despite, the overall number of continues to grow, bolstering the aftermarket. As customers reduce spend per vehicle in the short term, the independent aftermarket brands, which offer more competitive pricing, can leverage this key advantage over genuine parts suppliers, added the analysis from growth partnership company Frost & Sullivan.
However, all businesses in this space will have to change the way they conduct operations and communicate with customers or risk losing out to agile competitors.
“Customers are definitely becoming more demanding, and this is one of the factors transforming the market,” said Frost & Sullivan Mobility senior consultant Vitali Bielski.
“Well-organized businesses with an expanded portfolio of vehicle parts (as opposed to only focusing on 5-7 quick moving categories) will be able to capture a bigger share in the market. Streamlining business operations is no longer an option, it becomes a necessity and only those businesses that are keen to find new ways to retain customers in the long term will have the edge over competition.”
Source: tradearabia.com