Dubai, UAE: A thriving re-export trade in used cars is contributing to the shortage of quality used cars in the Middle East, according to Bill Carter, Head of Research and Valuation at Autodata Middle East.
Carter will be one of the high-powered line-up of expert speakers at the Automechanika Academy, one of the highlights of Automechanika Dubai 2014, which opens tomorrow (Tuesday 3rd June) at the Dubai International Convention and Exhibition Centre.
He estimates that as much as 30 to 50 per cent of the used cars in the market are being exported each year, leading to a reduction in the number of quality used cars available for trade in the local market.
“Other problems affecting the industry include the lack of appropriately trained sales staff and enough effectively valued trade-in schemes,” said Carter, who will be examining ‘Current Trends in Used Car Values across the Region’, at the two-day conference.
“However, the increase in the number of manufacturer-approved used car schemes has led to a decrease in depreciation levels. These always help to strengthen residual values if managed efficiently. Typically a 5-10 per cent increase in value of a two-year old car is not unusual with a well-run scheme.”
Beginning on the second day of Automechanika Dubai 2014 (4 June), the highlight of the two-day Automechanika Academy’s opening session will be the release of the Dubai Auto Parts Trade Update from the Dubai Customs’ Strategy and Corporate Excellence Department.
Frost & Sullivan’s Senior Analyst, Subhash Joshi will present a comparison of the automotive aftermarkets of the Middle East and Africa, while Prachi Satoskar, the Head of Automotive at global research organisation GfK, will examine the opportunities in the tyre industry.
The second day’s programme includes an in-depth look at the current trends in the global tyre industry by Surender Singh Kandhari of Al Dobowi Group; a presentation on off-road tyre challenges by V. Krishnaram of Emerald Tyres; and a presentation about integrating in-car entertainment systems by Thierry Gay, Managing Director of Good Ideas, and Jason Brown, President of EMMA Arabia.
Automechanika Dubai 2014 will open for business tomorrow 19 per cent larger in terms of net exhibition space, thanks to an ongoing surge in interest from international manufacturers and suppliers in the fast-growing regional aftermarket.
The exhibition, which spreads across 12 halls at the Dubai International Convention and Exhibition Centre, features the following key focus areas: parts, systems, tuning, workshop equipment, bodywork & paintwork, car wash, IT & management, tyres & batteries, and the latest automobile services.