Older cars on roads drive up demand for parts and service

Repair rather than replace is hot trend in a slower economy.

Sales of spare parts are speeding ahead as local drivers are repairing their cars rather than replacing them, retailers say. Syed Rashid Hassan, the manager of Al-Futtaim Motors's workshop equipment division, said the company's sales of maintenance parts were up 30 per cent so far this year compared with the same period last year.

"Overall, individuals don't like to go for a new car because they're not sure whether they will have the same working conditions for the next one or two years," he said. The data on car sales support his view. In Dubai, new car registrations dropped by almost a third last year from 2008 to 149,730 cars, according to Dubai Roads and Transport Authority figures compiled by the Dubai Chamber of Commerce and Industry.

And local car dealers estimate that sales fell between 25 and 40 per cent last year compared with 2008. And as cars get older, they often need more upkeep. Car dealers aim to tap into this market by expanding their service centres and maintenance programmes as well as upgrading the skills of their technicians. Derek Skehan, the group parts manager for Al Habtoor Motors, which is the exclusive local distributor for Mitsubishi, said his company's parts sales were up 22 per cent so far this year from the same period last year. In March, Al Habtoor had its highest monthly parts sales ever, he said.

With the increasing demand, the production and sale of counterfeit car parts have also increased as consumers look for the cheapest option, said Omar Shteiwi, the chairman of the Brand Owners Protection Group (BPG), a group that fights such counterfeiting. "People are choosing cheaper products, so they are going to counterfeit spare parts rather than buying the genuine," he said. There are no official figures, but the trade in fake goods across the UAE is estimated to be worth US$500 million (Dh1.83 billion) annually, according to the Ministry of Economy.

According to recent research by Al-Futtaim Motors in conjunction with Gulf Marketing Research, 12 per cent of UAE customers knowingly buy counterfeit parts. These parts, commonly brake pads and tyres, are often of substandard quality, putting users at risk, said Mr Shteiwi. @Email:[e-mail]