MORE than 150 UK exhibitors are taking part at Automechanika Frankfurt – the most in the show’s 45-year history.
The record attendance comes as the Society of Motor Manufacturers and Traders (SMMT) publishes a report identifying a £195 million opportunity for UK aftermarket firms to expand in three major emerging markets, as demand grows across the world.
The UK automotive aftermarket ranks fourth in Europe and ninth in the world in terms of size, turning over an annual £21.1 billion. The sector supports 345,600 jobs and contributes £12.2 billion each year to the economy. And in line with the UK’s increasing car parc, the sector’s value is set to rise to £28 billion by 2022, according to the report.
The UK also enjoys robust trade with other European countries, with Germany its largest market, followed by France and Spain. In fact, Germany buys more components and accessories from UK-based parts suppliers than it does from any other country.
Meanwhile, a Frost & Sullivan report published by the SMMT today shows that international markets – and in particular emerging markets – offer the biggest potential for growth. It shows that suppliers exporting to these regions can increase their businesses at rates four to five times higher than the annual three per cent they can expect in the UK. The total global opportunity stands at some £500 billion for aftermarket business.
The report explores the potential for growth in three key emerging markets: China, India and the Gulf Co-operation Council region of the Middle East, covering Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Oman and Kuwait. Together, these three aftermarkets are worth some £54 billion. Just by keeping pace with these markets’ natural growth, UK aftermarket companies could double their income to £195 million over the next seven years, says the report.
SMMT chief executive Mike Hawes said: ‘The UK’s aftermarket sector is one of the world’s most dynamic, and the record attendance at Automechanika Frankfurt demonstrates the sector’s success and global ambition. To help companies exploit these opportunities, government must secure the competitive conditions that have allowed this export-led industry to thrive. This means tariff-free trade with our partners across Europe and further trade deals with emerging markets.’
According to the report, China offers the biggest opportunity for British aftermarket firms. UK suppliers produced parts worth some £41.5 million for the Chinese in 2015, and with the right conditions Frost & Sullivan estimates that British companies could expand their business there by 15 per cent every year.
Automechanika Frankfurt opened yesterday and runs until September 17.
Picture: Messe Frankfurt Exhibition GmbH/Pietro Sutera
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