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Used cars for ball bearings, spare parts, lubricants and tires - the UAE is the best place to source We examine the various factors that have contributed to Dubai emerge as one of the leading suppliers automotive spare parts to Africa continent.
Rapid industrialization and modernization that is currently spreading across many African countries has led to increased demand for capital goods such as machinery, lubricants, spare parts, ball bearings and other mechanical products and accessories the market for automobile spare parts, in particular, has been an attractive area for companies in the UAE, which have emerged as the leading supplier of these products to many countries in Eastern, Central and Southern.
The UAE has long been known as a major supplier of automotive spare parts in both the Gulf region, as well as Iran, CIS, Indian sub-continent and Africa After witnessing depression recently, the auto parts industry and spare parts in the country once the recovered gain at its optimum level, however, the increase in demand for quality spare parts encouraged parallel imports in the countries requiring major auto dealers and spare parts companies to launch a campaign full of blood against illegal importers operating in neighboring countries, in particular through the Oman border due to illegal imports in the UAE, the main local market players have combined together to curb the influx of excessive supply of spare parts through illegal channels.
It is estimated that nearly 30 percent of the demand for car spare parts is supplied by parallel imports from neighboring countries These pirated products are preferred by buyers because they are offered at greatly reduced prices These illegal operators are able beating local agents and distributors as they survive on low profit margins and high volumes they do not also pass on import tariffs and other additional costs to their customers in order to keep their prices low.
The rise of aftermarket parts important opportunity posed an additional threat to the spare parts dealers Emirati This lucrative market has experienced significant growth over the past five years, mainly due to the increasing demand of countries East Africa and the CIS but not all of spare parts sales opportunity in Dubai or Sharjah can provide the full range of parts used for all car models, but these outlets are able to provide nearly 90 percent these parts actually, some of the second hand spare parts taken in Sharjah are selling well 2011 models of parts to less than half the price of original parts as a result, second-hand spare parts activities has become a multi-million dollar fledged involving more than 100 small and medium enterprises -siz ed distributed throughout the country.
Earlier Dubai was considered the main source of used spare parts, but in recent years the market has moved to Sharjah, mainly because of the overhead relatively low Many second-hand spare parts outlets in many Sharjah used in used engines imported from Japan and then re-exported to many countries in Asia and Africa There is a huge demand for these products in the East African countries of Uganda, Kenya and Tanzania as well as other countries such as Russia, India, Egypt, Iran and Pakistan.
Most second-hand spare parts from damaged cars sold by insurance companies at throwaway prices and the rest from police auctions Most buyers prefer to buy these coins used because they are genuine and are often in good Although much of the used parts are sold on the UAE market itself, almost the entire stock of used engines are re-exported imported used engines are in great demand in many African countries that have a large market for reconfirmed conditioned cars.
It is little wonder that an increasing number of African businessmen seen buying their requirements of one of the many car second-hand spare parts made in Dubai and Sharjah I come here to buy used parts spare because prices in Dubai are one of the cheapest in the world as a result, I am able to make a net profit for myself when I sell these products at home, said Joseph Samara, a parts dealer spare Nairobi who was in Dubai recently to buy spare parts worth 20 000 for sale in Kenya in addition automobile spare parts I would also buy cheap car and truck tires manufactured in China for sale on the local market in Nairobi, he said.
Most African buyers purchase large quantities of automotive batteries, tires, spare parts, ball bearings, water pumps and a host of Dubai electronic products to sell at a profit in their own country Prices sensitive African customers - they are looking for cheap goods are not much concerned about the quality aspect, said Ahmed popular trading tires, one of the largest tire dealers, tubes and batteries in Chinese tires United Arab Emirates are in great demand in African markets because they are cheap and provide excellent value for money, he said.
With the price taking precedence over quality for many buyers, the market substandard spare parts always exist This is a request that many manufacturers and distributors are too eager to please While some of the cheaper parts are imported through the proper channels, it is also an important area of parallel imports of spare parts for illegal imports from neighboring countries increased in 1994, a rate of tire dubaialarming since 1991 when imports increased by Dhs 13 million Dhs 51 million as a consequence of these imports is the loss of income, loss of business, loss of reputation and credibility and deterioration of branding This not only deprives the government of much needed income but also gives illegal importing an unfair advantage over the price of authorized official.
The market for spare parts used in the UAE is as old as the auto Over the past decade, it has become a multi-million dirham full involving a large number of small and large businesses located in the country many of these stores also deal in used engines they import from Japan, then re-export to many African and Asian countries, including Russia, India, Egypt, Iran and Pakistan second hand spare parts are normally damaged cars sold by insurance companies and the rest of the auctions font These agents sell mechanical parts to 25 percent of the price of new parts, but the body parts, which are in more demand, are often sold at about half the price of the new rates, however, vary from party to party-n umise the spare tire condition and availability of this part of the market.
Dealers genuine spare parts don†t say they feel a threat from simple aftermarket parts used because new original parts are bought by those who can afford them and more specifically on the problem-free operation of their Some cars spare parts dealers consider parts used as direct competition to duplicate parts because of the price margin between the two are close to new OEM parts people prefer to buy used spare parts because they are genuine and are often in good condition Each output of spare parts can not provide the full range of room for all car models, but the market overall is capable of providing almost 90 percent of these parts the majority of the second parts spare hand at the end in the local UAE market, with customers coming from states GCC else close to hand, almost stock of used engines imported is re-exported.
The motors are in good demand in many African and Asian countries, especially those with large automotive markets reconditioned The diverse range of mechanical parts and cars and engines used brought this parallel activity to real and not genuine new spare parts business as it offers great variety at affordable prices Dubai has developed rightly a reputation as a market buyer†a look at the prices of different products confirms that no other place in the Middle -orient offers such a variety of products at low price.
The decisive factor is that over the decades, Dubai has developed a large community of retailers, a sophisticated system of import and substantial storage for This stock has led to the emergence of a highly competitive market that ensures price Dubai is as much as 10 to 15 percent lower than in neighboring markets “Dubai continues to be the number one to buy anything from used cars to car spare parts and ball bearings, ” said Pradeep Gupta marketing Ameeco, a leading supplier of ball bearings and roller analysts say sales of automotive spare parts and accessories in the Gulf has increased by 20-25 percent in 1997, despite oil prices falling sharply the year Several reasons are cited for this development.
One of the most extraordinary new trends in the UAE since the 1990 Dubai Spare parts Daewoo was the explosion in the number of visitors from the republics of the former Soviet Union, attracted by the many ways the money can be made in the Gulf enterprising Russians have been traveling to Dubai on specially chartered flights to buy as many products they can wear for resale at huge profits at home an estimated 100,000 tourists from former Soviet republics travel to the UAE every year, visitors are estimated to spend a minimum of 10,000 in local stores Over a quarter of this continues automotive replacement parts and related products as spare parts trade of Africa gains in stature, it is linked to new requirements within the African market the UAE , Its strategic location and its distribution network and established, can reap rich dividends by responding to the growing demand for automotive spare parts, ball bearings and lubricants in the rapidly developing markets of Africa.
BUYERS AFRICAN VISIT DUBAI SOURCE REPLACEMENT AUTO PARTS.
The growing demand of automotive spare parts in Africa, rising, demand, automotive.