British companies were out in force at Automechanika Frankfurt this year, with more than 150 UK exhibitors, 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 SMMT say the UK automotive aftermarket is thriving, ranking fourth in Europe and ninth in the world in terms of size, and turning over an annual £21.1 billion.
The sector supports 345,600 jobs and contributes £12.2 billion each year to the economy.
And it is growing: in line with the UK’s increasing car parc, the sector’s value is set to rise to £28 billion by 2022.
Sector growth
However, a new Frost & Sullivan report published by SMMT today, shows that international markets and in particular emerging markets, offer the biggest potential for growth.
International opportunities for UK aftermarket companies shows that suppliers exporting to these regions can grow 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 GCC region of the Middle East.
Together, these three aftermarkets are worth some £54 billion.
The UK automotive aftermarket sector is part of a globally integrated industry which relies heavily on the tariff-free flow of goods across borders, with component sub-assemblies often sourced from a diverse range of countries.
Mike Hawes, Chief Executive, SMMT, 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.
Home to 151.6 million cars and light commercial vehicles, it is set to surpass the US as the world’s largest vehicle parc within the next decade.
India, where quality UK-made parts are particularly sought after, also offers growth potential, with UK suppliers currently accounting for £14 million of the £6.7 billion market.
Similarly, in the Middle Eastern GCC, where car owners are almost completely dependent on imported parts, there is scope for significant expansion to meet regional demand, estimated to be around £5.8 billion.