Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Healthcare, Fitness and Medicine

COVID-19 movement restrictions drive e-commerce transactions, with increased preference for used cars a positive for aftermarket 
Dubai, United Arab Emirates, June 16, 2020:  Movement restrictions and other health safety precautions caused by the COVID-19 pandemic have intensified online and e-commerce purchases across the automotive and transport mobility sector across the GCC.
The overall customer journey has been transformed by lockdown measures and changes in attitude and behaviour as consumers avoid service centres, and providers adapt to changing circumstances in the maintenance and aftermarket sectors.
With the rise in contactless services as well as a boom in e-commerce, new business models are likely to emerge as more companies evolve, and further development in this space will have a huge impact in the automotive sector in the region. 
“Customer preferences are changing,” said Subhash Joshi, Middle East Director of Mobility and Regional Head for Frost & Sullivan, the growth strategy consulting and research firm. “Vehicle maintenance trends are becoming more convenience oriented and customers are now more inclined to avail of services at their home or at their workplace, rather than invest time in a service centre. We expect on-demand and on-call mechanic services, which are being piloted in the UAE, Saudi Arabia and Oman, to become mainstream services.
“Similarly, on the aftermarket, especially during the period between March and April, there has been a spike in online sales of brake parts and accessories,” Joshi added. “Penetration of e-retailing of spare parts, which was less than three per cent, is already at five to seven per cent in 2020. We expect this trend to remain as online accessibility for accessories, spare parts, brakes and batteries are launched.”
Vishal Pandey, Director at Glasgow Consulting Group, echoed this sentiment as he commented: “The demand for online services is likely to see a huge surge as consumers will be more likely to stay indoors and have services come to them rather than expose themselves to the outside world.”
Due to increased financial pressures, a growing inclination towards used cars has spurred aftermarket maintenance spending both in terms of servicing and parts due to extended car life span, with sales of used cars also outpacing new vehicles. 
“As people are being financially cautious and overall consumer confidence remains low, consumers will defer major purchases of new vehicles,” Pandey said. “An increased willingness of people trying to use old cars has also created an opportunity for the aftermarket component and sales to grow.”
The average life span of vehicles in the GCC has increased from 7.4 to 7.5 years to 8.1 to 8.2 years, meaning a rise on average spend on maintenance due to the average age of vehicle and mileage, offering a positive for the automotive aftermarket.   
“The ratio of used car sales in 2014 and 2015 in the GCC was about 0.8 for every new car. In 2019, the UAE was almost equal to the UK which averaged 3.5 used cars for every new car sold,” Subash added, highlighting how an increase in online platforms for used car sales will further strengthen the market. 
“Penetration of e-retailing of new cars, which used to be 0.25 per cent, has already increased to approximately two to three per cent,” Subash explained. “Between January and March this year, used car transactions on online platforms have already recorded an 8.5 per cent increase. Therefore, how the customer journey is to be defined will greatly impact on the GCC region.”
Joshi and Pandey were panellists on a webinar hosted by Messe Frankfurt Middle East for Automechanika Dubai, the largest international automotive aftermarket trade show in the Middle East, on June 1 on the ‘Impact of COVID-19 on GCC's Automotive Aftermarket'. 


Posted by : GoDubai Editorial Team
Viewed 4555 times
Posted on : Tuesday, June 16, 2020  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Experts at MEHD Warn Residents of the Risk of Developing Cataracts
Next Story : DIAC Webinar Examines Impact of Covid-19 on Arbitration Landscape
Email this article Print this article

Share this article with your friends and followers


Back to Top  
Most Viewed Press Release posted in the last 7 days
Lockdown Showdown: Jaguar I-pace Etrophy Series to Get Back on Track in Berlin i...
Three Eggs get Yemeni National a Guinness World Records Title
Omega's Antimagnetic Tourbillon Is a Watchmaking Breakthrough
Lamborghini SCV12: Squadra Corse Hypercar Ready to Hit the Track
The new BMW M5 and BMW M5 Competition
Toric Tourbillon Slate
GROHE Smart Control Review
Twitter tests Tweeting with Voice
Saxo Bank Launches Loyalty Program for MENA Region Clients
Hyundai Motor and Sony Pictures Entertainment Announce Unique and Pioneering Mul...
American Aesthetic Medical Center Has Something in Store for the Esthetical Figu...
WTTC Launches Safe Travels Protocols for Attractions, Car Hire and Short-Term Rental
NUDESTIX Launches - Nudies Blush, Bronze, and Glow Shade Extension
Volvo Cars Chengdu Car Plant Powered by 100 Per Cent Renewable Electricity
Range Rover Marks 50 Years of All-terrain Innovation and Luxury With Exclusive N...
Under-12 and Over-60 Can Now Take Part in Sports Activities: Dubai Sports Council
Dabur Ensures Safety with Hand Sanitizers and Personal Protection Kits as UAE Es...
Let's Brigthen Up! The Face Shop's Ultimate Summer Skincare Range From Belif is Here!
Handy Helper for Content Creators: The Compact A6100 Mirrorless Camera from Sony...
Pre-orders for Samsung's Galaxy S20+ 5G and Galaxy Buds+ BTS Edition now open in...
Experts Highlight need for Young Talent to Develop Skills for a Post-Covid-19 World
Dabur Launches Pure Organic Coconut Oil: Natural Protection for Hair, Skin, and ...
GEMS Wellington Academy – Al Khail Improves Rating to 'Very Good' in KHDA DSIB 2...
Etihad Airways to Recommence Flights to Athens
Dubai Sees Pronounced Uptick in Demand for Retail Units
Book Building of Amlak International's IPO of 30% of Shares
Sanctuary for the Senses: All-New Lincoln Corsair Arrives with Whisper-Quiet, Co...
Essence Spring/Summer 2020 Collection
Registration Opens for Training On the Camel Trek and Camel Marathon for Expats
Covid-19 Leads UAE Businesses to Adopt Upgraded Green Building Solutions
Dubai Sports Council Discuss Upcoming Sports Events With Federations and Organisers
Dubai Sports Council to Celebrate Dubai's COVID-19 Heroes Through Commemorative ...
Turkish Airlines Was the Busiest Operator in the Eurocontrol Area After Restarti...
Celebrate Father's Day With Parmigiani Fleurier Tondagraph Slate'
INFINITI of Arabian Automobiles presents Dubai Islamic Bank customers Super Sale...
Crude Oil Headwinds on Virus and Technicals
Customers can Benefit from Increasing Gold Rate by just Paying 10% Advance at Ma...
Canadian University Dubai Receives Prestigious Certification in Education for Pu...
Report Reveals the Six Fintech Innovations That Will Boost the ‘Financial Health...
Serco Middle East Appoints New Managing Director for Dubai Metro and Dubai Tram
Big Bang Integral King Gold
Pan Emirates Unveils Exclusive New Collection
Digital Vision Technology Signals On-Track Success for Panasonic Jaguar Racing
Schneider Electric Extends Strategic Partnerships with AVEVA, Lenovo and Stratus...
Celebrate World Music Day with HONOR Magic Earbuds
The 11th Edition of the Arab Fashion Week to Launch Virtually Today, from June 2...
New Bentayga to Launch Beyond100
Cairo Amman Bank Adopts the Latest Technology to Enhance Performance and Securit...
Celebrate Summer Safely with the New, Shopping Normal at BurJuman
Registration open for Dubai Watersports Summer Week