Tyre firms eye Saudi Arabia as strategic growth market

With more than 13 million tyres being imported annually and a market that is set to grow by 12 per cent each year (according to the US commercial service), Saudi Arabia is the largest market for tyres and tubes in the Middle East region. This growth, fuelled by an ecomomy riding on high oil prices, high disposable incomes and an appetite for all things automobile, means that the Kingdom is firmly in the sights of tyre and tube manufacturers worldwide.

According to industry figures, the Saudi Arabian import bill for tyres is worth approximately US$800 million. This includes automotive tyres for light vehicles such as passenger cars, pick-ups, SUVs and LCVs; tyres for trucks and commercial vehicles; and aircraft tyres. With millions of vehicles on the road, the prospects for future growth, both in the Kingdom and the wider region, is bright, as car ownership is on the increase.

Saudi tyre market estimated at US$800 million with exports to increase 12% a year

“The Saudi market, which is one of the largest in terms of both value and volume in the region, is a big draw for international tyre and tube manufacturers and distributors,” said Ahmed Pauwels, chief executive officer of Epoc Messe Frankfurt, organiser of the forthcoming Automechanika Middle East. “With over 60 international brands already present in the Saudi market, more and more tyre manufacturers are expressing interest in being represented at Automechanika Middle East, to gain a foothold into this extremely promising marketplace,” Pauwels added.

A largely import-driven market, as there is little to no local manufacturing, the Saudi market is a magnet for leading international brands, with Japanese and American tyre majors leading the way followed by a strong representation from European and Asian brands. All tyres imported into Saudi Arabia have to pass the safety specifications laid down by the Saudi Arabian Standards Organisation (SASO – saso.org.sa), before they can be marketed in the Kingdom.

According to the exhibition’s organisers, tyre manufacturers and distributors consider Automeckanika Middle East as a key networking platform that eases access to the entire Middle East region – a fact that is confirmed by their presence in large numbers at the annual event, which has a specific section dedicated to passenger, truck, bus and trailer tyres along with OTR, agricultural and industrial products, not to mention rims, tubes, casings, retreading and repair materials and all related equipment.

Infinity to launch new pattern at Automechanika Middle East

Surender Singh Kandhari, chairman of local UAE exhibitor Al Dobowi, is of the opinion that Automechanika Middle East enables exhibitors to interact with buyers and dealers from countries that are generally difficult to access. “Middle East and Africa are the key markets for our strategy. We believe that this region offers tremendous opportunity for us. We believe that the show adds value to our business by allowing us to meet the right people at the right time.” One specific sign of the firms Al Dobowi Group looks forward to launching a new pattern for its Infinity brand tyre range during Automechanika Middle East.

Sudhanshu Agrawal, senior marketing manager at Balkrishna Tyres, commented: “In this region and especially catering to the Middle East and North African countries there are not many shows especially in the automobile industry and tyres in particular. Since there is dedicated space for tyre exhibitors at this show, it will provide a very good opportunity for all the buyers and sellers to come under one roof. We are sure this show will attract huge footfall not only from the GCC countries but from African countries as well, which will facilitate brand promotion for Balkrishna Tyres.”

According to one Mr Asad, managing director for local exhibitor A-Map: “The Middle East market has become the most attractive point of focus for all multinationals around the world. This gives immense opportunities for growth to companies like ours who have had a stronghold in the Middle East for the past 30 years. Automechanika Middle East gives us an incredible platform to reach out to visitors from the entire region, and hence helps us in achieving improved sales and successful branding of our company and products.” A-Map has announced it will launch its new range of Indonesian tyres during this year’s exhibition.

Automechanika Middle East 2011, which will run from 7 – 9 June at the Dubai International Convention and Exhibition Centre, will also feature a wide range of exhibitors from the workshop equipment, batteries, parts and tuning accessories.

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