Experts call for localization of auto spare parts industry

The experts called for localization of the auto spare parts sector to curb import costs. (SPA)

RIYADH: The volume of investments in the auto spare parts has been estimated at SR25 billion annually, local media said quoting car experts.
The experts called for localization of the auto spare parts sector to curb import costs, activate local investments, and minimize imitation and manipulation.
They said the rate of counterfeit parts in the local market is exceeding 40 percent of the total auto spare market, which are mostly accepted by customers for their cheap prices compared to prices of the genuine parts.
Mohammed Al-Qahtani, member of the committee for cars at Jeddah Chamber of Commerce and Industry (JCCI), said auto spare parts industry in Saudi Arabia has become a necessity, especially as the Kingdom plans to enter into the car manufacturing industry in the coming years.
The Kingdom is capable of establishing auto spares factories as it used to export huge quantities of raw material for some spare parts such as petrochemical products to certain countries such as China and Turkey, which are re-exported to the Kingdom as spare parts, he said. He added that the private sector has potentials to establish specialized factories in spare parts if the Ministry of Labor grants the required work force in light of facilities given by the government to the growth of the private sector.
The volume of car sales stands at SR20 billion while the Saudi market receives 600,000 new cars annually, he said, adding that opening doors to foreign investors will cut prices of spare parts and minimize entry of counterfeit parts, which were the main reason for the majority of car accidents in the Kingdom.
Nadir Mandali, a car investor, said the Saudi market is prepared for the entry of the foreign factories in light of facilities given by the Saudi Arabian General Investments Authority (SAGIA) to acquire technology and train youths.