GCC automotive aftermarket is expected to reach $8.9 billion in 2021. However, little information is available about businesses’ ongoing performance and short-term expectations. Frost & Sullivan has launched a new quarterly GCC Auto Aftermarket Business Sentiment Survey to address this challenge starting September 2021. Hence, from Q3 2021, GCC auto aftermarket business sentiment will be tracked quarterly, indicating whether the market is expected to expand or contract.
For this survey, Frost & Sullivan spoke to business leaders of large and medium automotive companies responsible for either the entire GCC or individual countries, accounting for 35%-40% of the GCC auto aftermarket. These include national sales companies, automotive dealers, parts importers and distributors, workshops/quick service providers, and service aggregator platforms. We endeavored to understand the sentiment level in the market, and today, we are excited to present the key survey findings for Q3 2021.
Q3 2021 Key Survey Findings
Q3 2021 Business Performance:
- 29.2% of companies performed better than expected in Q3 2021
- 58.3% performed as expected
- Only 12.5% of companies performed worse than expected during Q3 2021
Q4 2021 Business Performance Expectations:
- 8.3% of companies expect the situation in the market to worsen in Q4 2021
- 58.3% expect the market to grow
- 33.3% of companies expect the situation to remain stable, at status quo
Interestingly, when discussing individual companies’ expected performance, 66.7% of companies expect to perform better in Q4 2021, which is higher than the growth expectations for the overall aftermarket.
Workforce Management:
- None of the surveyed companies are looking to cut jobs
- 41.7% are currently hiring
- 58.3% are maintaining the same level of workforce
Top Priorities for Q4 2021:
Product/service diversification, cost reduction, and profitability improvement are being seen as the main priorities for Q4 2021. At the same time, companies are not expecting to rely on organic market growth, and mergers and acquisitions are unlikely to be initiated in Q4 2021. Also, 1 in 4 companies indicated that online sales are expected to become a priority during the last quarter of 2021.
Overall Sentiment Indicator: Positive
Recommended Reading:
- GCC Light Vehicle Aftermarket Outlook, 2021
- Strategic Analysis of the GCC Automotive Aftermarket, Forecast to 2025
For more information on this survey, write to: [email protected].
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