TOP MOBILITY TRENDS: FEATURING MAHMUT GAZI BILIKOZEN

In this episode of the Wiki Bearings podcast, Hassanein Alwan sits down with Mahmut Gazi Bilikozen, a seasoned expert in the automotive aftermarket across the Middle East and Africa. 
Gazi shares his incredible journey from Istanbul to Dubai, his early career in logistics, and his pivotal role at Messe Frankfurt, an organization with a legacy spanning over 870 years. Tune in to discover the top mobility trends, from electrification to shared mobility and beyond!  
Whether you're an industry veteran or a newcomer, this episode offers valuable insights into Automechanika Dubai, the automotive aftermarket, and the unique dynamics of the Middle East region.

For more info, Please visit our website: https://mcb.ae/

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Transcript

[00:00:00] Welcome to Wiki bearings, where we dive into the worlds of engineering excellence, from the automotive marvels to the industrial giants. Join us to explore the wonders that keeps the world in motion. My name is Hassanein Alwan, and I'm your host.

Welcome to another episode of Wikibarons. On today's episode, we have a very special guest. A dear friend, a person that is well known in the automotive aftermarket in the Middle East and Africa. Welcome Gazi to the show. Thank you very much Hassanein. It's a pleasure and an honor to be here. And you call me, I'll go anywhere.

Thank you very much. It's a pleasure to have you. You are a star in the aftermarket show. You have been in the market for a long time. For our audience, I would like them to know a little bit more about you. Tell us a [00:01:00] little bit. Sure. First of all, again, it's a pleasure to be here. And my name is Mahmut Gazi Bilikozen.

I'm an Istanbul native. I'm originally from Turkey. Thank you And I've been in Dubai since 2006. If you were to look at my background, I was an exchange student to the U. S. in 1995. I graduated from my high school in the U. S. in California. Then I went for my bachelor's to California State University, Sacramento.

Then I worked in San Francisco in logistics industry for C. H. Robinson for two years. Then I was with SEVA in Istanbul for three years, and then with two years with UPS in Dubai. Okay. Then I was growing up. I didn't know that. Exactly. So it's all logistics, which is very interesting. Then I was recruited by Mr.

Frankfurt in 2008. And since then I've been with Messe Frankfurt. And what I loved about Messe Frankfurt was the history of the trade fair in, in Frankfurt, which is actually almost 872 years old. So that's the history of the exhibitions in [00:02:00] Frankfurt. Of course, a lot of the audience and a lot of people in our industry, especially in the automotive industry, Frankfurt and Messi Frankfurt and AutomechaniKa is a big name.

Yeah. And it's a successful exhibition for many years. So tell us about, a little bit about Messi Frankfurt. You have been since 2008 in this organization. How is it different from other organization and what makes you stay? Very good question. Actually, I said, and what I loved about Mesa Frankfurt was the overall, the family feeling and the belonging feeling, because it's, it, the Mesa Frankfurt gets a lot of substance from its history, from his legacy.

And for creating markets around the world, it's all started in the eighties in Asia with becoming international before it was only in Frankfurt, then in the eighties, it started with Hong Kong and in Tokyo with the first subsidiary. So overall, Mr. Frankfurt has done a very well job of adapting to the regions they are in and then having the right concept for [00:03:00] the right clientele.

And again, we create markets worldwide. I remember our first meeting in Dubai. That's so amazing. Was it 2009? Easily either 2000, probably 10. It was exactly. And I still remember with Michael Dane, my, the manager at the time, we were walking in Deira, we saw your showroom and we were like, MCB.

You know what? Let's walk in. And there was a gentleman at the reception and said, yeah, the boss is upstairs. Why don't you meet him? And we were like, okay, maybe we should get an appointment. I'm like no. He would be happy to meet you. And that was it. Since then, Hasanin, it's been a pleasure knowing you.

And as again, more than business is the way you're involved in the industry, involved in your company and seeing your company grow so much in the last More than 10 years. Amazing. It is interesting what one meeting can they agree? And it's all about meeting people. And I still remember.

I was at that time also fairly new. I came to Dubai in 2009. So I was still in my few first years in Dubai. So it is [00:04:00] interesting. And now we we are 2024. So time flies, but I'm glad we still look almost the same, don't we? Yes. Okay. I think The first time we met, we talked about Automechanica Dubai.

The fair at that time was very new, and it has gone some distance. That is true. And it has grown over the past 14 years. Tell us a little bit about Automechanica, and what makes Automechanica Dubai special? Different from other auto mechanica, correct? Auto mechanical Dubai started in 2003 and within a short span of time grown so much.

And the beauty of auto mechanical Dubai in Dubai is that's actually the city that, that we have the show in. It's makes it all international, right? The diversity is starting from the city. With all being the trading hub and it translates into this exhibition, where it's 90 percent international.

And now we have almost 2000 exhibitors. In this year's show, we're going to have more than 2250 exhibitors. [00:05:00] Wow. It's a major event. And again, we get visitors from 160 odd countries. And we get visitors from Latin America and when I asked them, why are you here and not in the U S and they love the diversity and the offerings that city, first of all offers the international exhibitors and visitors, plus the opportunities.

And again, with hospitable people like you, it makes everything even better. For sure. It's a different, uh, every show have its own beauty and advantages and disadvantages. And I think Also you spot the sweet spot of the market didn't have any show addressing this market, which is the automotive aftermarket.

And maybe you started at the right time and with the right people, your team, and you did a great job. And this is how it's grown. I know you're recently were promoted and got a different So I think now you are the Mobility Director. The Mobility and Logistics Portfolio Director. That is correct. So let's look at the word [00:06:00] logistics.

I think it's very clear. What do we mean by mobility? Mobility is of course, the mobility word itself is moving of everything, right? Including people, including products, goods, and everything. And but mobility within MSF Frankfurt means automotive aftermarket, automotive motor shows. We have festival of motoring, for example, in Johannesburg, which is a different type of even motor show where you can experience vehicles.

We have logistics shows around the world. And so in, in total of mobility and logistics, we have actually 39 shows around the world for 800, 000 trade visitors. It's quite a bit. Amazing. It's a massive, why I wanted to focus on the word mobility because on the last McKinsey report, they were saying this is the hottest sector worldwide.

So it is a sector that is growing, getting also in a lots of dynamic movement and there is a lot happening on that mobility. And as we're going to dive into mobility [00:07:00] and we're going to talk, so it's at least for the auditor to to have an idea what we are talking about. Yes. Thanks. So let's look at the aftermarket meal.

Now we can understand that we are in an era. It's a I think it's if we look in the past, maybe 100 years, the automotive market have been very stable moving. With ice engines and cars and it have been going into that slow evolution or growing into, but it's about being a very stable in the last maybe 10, 20 years, there have been a lots of dynamics, lots of trends that is changing into that.

So tell us a little bit about the trend that you see in the mobility industry. You're totally right. The first hundred years of automotive was quite stable and growth was very fast yet. The infrastructure was very similar and over the years it's shown a [00:08:00] great change yet. The initial, let's say the basics were staying the same.

Yeah. Whereas in the last 10 to 20 years, there's a lot of other dynamics and elements started getting involved and electrification is just one part of it, but also there's autonomous driving, AI influence, and. subscription methods, the buyer behaviors, everything is changing. Connectivity shared mobility, shared responsibilities, who is responsible for what, when something goes wrong.

I guess it's like how when internet first started in the nineties, right? At least initially that was, everything was open for everything, but then there has to be some jurisdiction. There had to be some things to, have guidelines, how to use it and how to go forward. So similar thing to now where we are with the mobility what is the next best thing?

No one knows, and we have to find the answer together. And of course, now sustainability plays a role. Innovation goes, has to go with sustainability AI. There's a lot of things [00:09:00] and we are all in this together. I think what's makes it very interesting in the past few years is that, The Internet of Thing, then with 5G, with AI, the sustainability awareness that have grown massively in the past few years, all of that is adapting and changing and molding this mobility industry, the transportation.

to make it more sustainable, to make it more efficient, to make it more connected. Now we are connected way more than we are ever being connected. Correct. Maybe too connected. Too much connections. Yes, that is correct. Sometimes we want to get our phone on flight mode. Some I love it. Exactly. Yet I think pandemic taught us a lesson is nothing beats face to face.

As in, and I love talking to you over the phone, but I'd rather see you face to face because. Nothing can match this type of connection. No, I think pandemic have given us two, maybe [00:10:00] two lessons or two hard lessons. One, I think when it's come to adaptation of digital environment, this was a big push that have happened during the pandemic because suddenly we understood how important the digital journey is.

It, how important to get connected, to find an alternative way. But also we understood that. Yes, we can do a lot of things online and digitally, but still face to face meeting people, having, that interaction is unbeatable. That is correct. I still remember to this day that I was, Right after the pandemic, that was my first physical gathering was Ahaka gathering with the German chamber German Emirati chamber.

And it felt so refreshing because, being online for the last, one to two years, it was very demanding, very draining. No, like we were all excited to get out and meet people and yeah, for sure. Yes. [00:11:00] But I think also it is, it's, if I look at how. Digitalization was adopted during pandemic.

We wouldn't have reached to where we are today, maybe without, because everything was Postponed it and do we need it to we don't need it and all of that. And suddenly we understood maybe it's an alternative way of communicating, doing business, shopping, all of that. And that was was again, an eye opener and created a lot of opportunities as well.

And this is why maybe we are today also discussing all this transition. I think also in the past maybe 10, 20 years the awareness of. Sustainability started to yes, it's becoming a buzzword, maybe. But I think we start to understand how sustainability is important for the future of our planet, our kids, and how is it impacting us today?

I think if we look at the weather, we can [00:12:00] understand that the global warming. Yes, that is great. A lot of changes. You're right. Sure. So this is you said something about electrification or EV cars. And there is a lot of hypes about electrical cars and it was a certain period of time. It was cool to drive an electrical car now becomes more.

More, let's say the accepted trend. How do you look at the evolution of the electrical car in the coming years? Obviously it's very exciting. I still remember the first time I drove an EV car. It was actually at Messe Frankfurt during Auto Mechanica Frankfurt, we have actually electric cars running between for the show team.

Between the holes. So we were, we came out of the exhibition, we had a dinner and then we went back into the Mesa Frankfurt to the fairgrounds and we actually draw, and it was my first time driving a BMW if you want to take it out, you can this one, um, EV, and it was very exciting because it was very different than internal combustion engine.

Yes. And as much as it's different, [00:13:00] it, and you don't know when you're driving, what would be the next level for the coming, generation. I recently I started thinking what about the infrastructure? What about the charging stations? How would that work? And how would that work in your building, especially if you're in the living in an apartment building with maybe a hundred other cars, they're all charging at the same base.

Someone charges longer than the other. Who takes care of it if someone leaves their car for a couple days there and things like that. I think initial excitement is there, but then the aftermath, how things will unfold will show our next step. And that's not an easy answer at the moment. Yeah, sure. I think if we look at in the past few years, this have accelerated.

The number of PV cars on the roads and the streets and so on. And now with the number of cars is increasing, we started to look at all of the other aspects. Could be the [00:14:00] charging infrastructure, the grid. We are in Dubai, so it's a very modern city, but if you look elsewhere in the Middle East, Africa, You still have an infrastructure that maybe is not very ready.

The demand on this charging like stations is getting more and depending on what kind of a charging station it is. And because the this smaller or the slower, the charging it is, it takes longer time, the more powerful it is, it's shorter, but at the end, everything have its its cost and demand.

The other aspect, I think, what have started to become a, an interesting topic. What do we do after 10, 20 years with these batteries? This is also recycling. Yes. Very well. And how sustainable it is how do we address this? A block engine, an ice engine you melt this down, you make another, we know the intricate details and we know how to recycle that.

We have done this for now, almost 100 years. [00:15:00] We so that we have the, we have understood how to do this. I think when it comes to battery. It's a little bit a new challenge, and I think we have a long way to learn. And we, this is, I think, where the still the evolution is coming. And I have recently read A concept about reusing these batteries for solar panels, for house for servers and so on, because these batteries are powerful.

Correct. And they can be used in other, so all of the, there is a lot of studies and, how to reuse them because maybe they are not as powerful in a car, but if you use it for. Households application of use it for servers. I think still they are powerful cars. So I think, yeah, we have time to see and to digest.

And I think there will be Generation 3 and [00:16:00] different types of of EV coming to the market. Now, looking at EVs, there is an intriguing question that, why are lots of phone makers want to make cars? Why do they want to get involved as well, right? Yeah, look at Xiaomi is making now a car.

Apple was planning to make a car. They invested tens of billions of dollars. They had more than 600 employees working on, on, on this on the projects, which is autonomy electrical car. Sony is doing that. Now. OPPO have a project, which is another why you think they are interested? I think it's with any business when there's an opportunity, you get involved and sometimes you have to be involved in order to come up with the solution for the next best thing.

If you're looking from outside and just waiting that someone else will find the best next best thing, then you're maybe missing out. So I, I say for these companies they see that the change will bring a huge opportunity for the. For the [00:17:00] innovation, for the newcomers, whereas you wouldn't maybe find that type of opportunity in other industries.

So that's what I'm saying, because of that huge transformation, a big change, it's creating a lot of opportunities and everyone wants a piece of it. I think, as you said, the transformation is creating a new grounds for new players to come. It was the interesting I read recently in April, Polestar, the car maker have launched a phone.

So this is the only other way around, right? Okay. So a car maker. I've never seen it, but I've seen some picture of it. It was just I think 23rd of April, they launched a phone. So there is it's interesting how phone and cars is now getting all of this. Is it because of connection or is it because of battery or I, like my observation or like now I'm I don't have a the scientific reason why, but I think.[00:18:00] 

When it comes to electrical cars, the operating system is so important. off that car. And I think a lot of phone makers have to create and use operating system and get so there is something connected to that operating. And because at the end, if you have an electric car, a lot of this is a screen, it's a touch, it's an operating system.

So there is some similarities, but this is not. I think it's finding the right setup, right? I think hardware is easy to come by, whereas a software or the setup, the whole design of the setup, because a software is a software, it will just do what it needs to do. But if it's designed well, it will give you what you need to do.

And this is, I guess the winner will be the one coming up with the best designed eventually. Now what do you think is now the main challenge of adapting Eevee? What is the [00:19:00] challenges around EV? I agree. I think it's definitely being on the same page. The governments, I guess they have, they're driving this whole change as well, whereas the manufacturers and the buyers have to be on the same page.

And then again, like the responsibility and if something goes wrong, who takes care of the responsibility? I guess there's still a lot of, unknown is the biggest challenge, is the unknown. And how do you resolve it and how do you predict the next step for it to have a very, let's say, smooth transition, just like autonomous driving, right?

If there is a, if there's an accident again. Who takes the responsibility? It's the biggest question. Sure. And if we answer that, then the rest is very easy. Looking at the EV and looking China have been well known for pro producing cars, and I think there is almost 40 brands known in China for, but in the last 10, 15 years, the estimated number of.

Chinese brand car makers [00:20:00] is 129 which have grown up in a very short time. And it looks to be China going to be the next important player in this segment. Maybe the most important at the moment as well. When I was in China in November December of last year during Automechanica Shanghai, I've seen some cars I've never seen before and.

And they're beautiful and they're well designed. And then the drive, I was in, of course, passenger in a taxi, EV, different brands. Some of them are already started making it to Dubai as well. Very attractive cars. And then the finishing quality is amazing. And it seems the performance is also amazing.

very promising. So you're totally right. China has a big say in this, and we welcome, of course, just like any other country. And actually, in fact, in Automechanica Frankfurt this year, there will be EV Automechanica, EVA, which will welcome many manufacturers from around the world and major manufacturers from [00:21:00] China.

And we're planning to roll this for all Automechanicas around the world in 2025. So China is the driver for the EV transformation. I think I was amazed in the variety of cars, the variety of brands and but do you think this would be sustainable to have so many brands in this segment?

Just like I mentioned, I think everyone is trying to find their position in industry. Some will be winners, some will be losers, but that's the nature of business. And I guess the best sustainable solution, the best design will win eventually. But everyone is again, trying their best to stay in the market and the competition.

I think with this adaptation and transformation, we, Everyone wants to, as you said, get a piece of this market. And I think maybe in, in a few years time, this is where we'll, the real competition will happen and the stronger wins in the market. And [00:22:00] I think probably bigger manufacturer would be able to buy the smaller ones and adapt these technologies.

And I think This is the natural, the natural growth and the evolution of the business. There is a lot in this to see and everyone is active in this segment. So do that EV is the name of the game? I think again, it's when I look at it for some reason, EV is the one that is chosen initially to be, let's say.

Mass produced yet the fuel cell and other even solar energy is, I guess it's also in the books and we don't know until the end who will win. But of course, EV has a initial, let's say advantage because of the fact that a lot of manufacturers started going EV adapted already. And the government's already started encouraging.

There has been even like green, loans from banks for EV mortgages. EV loans, car loans. So I [00:23:00] guess initially the EV is starring yet. I don't think so. That would be the final thing. The final thing might look a lot different. And, also looking at the technology, how it's growing on the last 10 to 20 years, leaping, jumping.

It's not step by step. It's, it might jump a couple steps ahead. Whereas maybe what we speak today will be obsolete in three years time. It's as simple as that. Just like our mobiles, right? Things are changing so rapidly. It's hard to actually keep up sometimes. Yes. I think if I look at, I think it looks to me that EV will be part of the future, but not the only future as a lot of people is trying to angle it that way.

I think the ICE engine will stay for some time. Maybe not in every type of cars. And I think it's As an engineer as somebody have worked in that automotive industry as well, I think we have [00:24:00] perfected that engine over 100 years of time. So the efficiency we get from an engine, I think we have long time to see that efficiency coming from maybe batteries or other technology.

So I think. Ice engine will be part of the game. EV will have its spot, and then maybe we'll see different generation of batteries, technologies, fuel cells. And I think there is still players that are bargaining on other technologies like hydrogen or other types of energy to, as you said, solar and so on.

So I think we are in a very interesting era. We are able to see that transformation by our eyes and. and be part of it and hopefully can influence or shape that that industry. Of course, when we talk about EV and mobility and connected cars, we always somehow land on the autonomous vehicle. [00:25:00] And when it comes to autonomous vehicle, it's there is other challenges as well.

So how do you look at the autonomous vehicle evolving? Yeah. Actually with the current cars we have on the road there is a certain capability of autonomous driving is already there. For example, certain cars, it keeps you within the lane. It has the radar, let's say cruise, where it actually goes into full stop, if it has to, and then re speeds up.

When you look at it, it's, there are certain elements already we are using it, without even noticing it. Partially autonomous, what we call. Partially autonomous, exactly. Yes. Eventually at one point we'll write down the address and then just start reading our newspaper. If there is a newspaper, I guess we won't do this, it will be, we'll be doing it in a mobile phone yet it will take us to the final destination.

And again, I guess it's the jurisdiction is the legal point of view has to be clarified before we go into that or else, as I mentioned, certain branded cars already have [00:26:00] the infrastructure, which is ready to be rolled out especially in the U. S. I think also we still, there is a few players in this segment that have the technology ready, and I think we will see more people playing in this.

My, my understanding, just to, to add to your point, is that I think it will be easier to adapt autonomous in limited areas or let's say in maybe public transportation because a public bus, for example, usually drive the same routes and usually this, the same speed, the same stops. And I, my feeling is this would be an easier to adapt.

It's a control environment at the end of the day. I think we have seen that in in the expo Dubai expo. There was a certain areas where you can take The shuttle bus that goes and come back. The technology is coming there and it will be easier to adapt [00:27:00] and it will be also efficient.

For government and maybe for public transportation to adopt some of these technologies where, private driving and autonomous is going to be a bit of a challenge to see. And I think, as you said, it's not one. It's not only the technology is not only the jurisdiction or the legal aspect.

It's also, I think. People to feel safe being driven by a car. Rather than driving a car, the guy is driving you. Yes, that's correct. And when there's a mix of drivers when there's an autonomous driver next to you, and then as a human driver, you're like, What's the combination? There's a lot of dynamics on that one.

Now, looking at this aspect and we look at the growth of EV and the growth of batteries and the connectivity and the cars. Now we started to see what I call the micro mobility or the shared mobility. And this is not something we're going to [00:28:00] see in the future, it's already here. And it started to have an impact on how we commute.

How is your view on this? Actually, I've, this is the most exciting part for me because, when I heard about shared mobility or subscription methods and so on, I was thinking, and when they were saying that, for example, you drive your car to work and then you work in eight to 10 hours, 12 hours at work, your car is sitting at the parking lot.

Yeah. It's you're paying for that car while it's sitting. In a commercial vehicle segment industry, as that the trucks has to be on the road the whole time. Every minute it's parked at the lot, it's losing money. Similar, when you think about it, why would you have to buy a car while you could subscribe?

So I think that really excites me, the way it's going how things will be so efficient and so sustainable. Whereas you'll use as you need, not you will need as you use. So it's the other way around thinking. So I think this part of mobility segment is really exciting. And every time there's something new coming up, I [00:29:00] think very recently, In the last couple of years, there is also insurance services where you pay as you go.

I was like, Oh, that's interesting. Because for example, you're on vacation, your car is sitting one month in your driveway. Why would you pay insurance for that? Unless it's for, other purposes, but on the road, because it's not on the road. Things like this. No, I think it's very true. I think this is the change that it's not in the future.

It's already here. Technology, the connectivity, 5G is helping. Because now you can track the car, you can check the health of the car, you can order gas online. There is a lot happening here and I think this will also change the way we, we look at a car. Now, maybe in the past we look at as part of the prestige, just maybe part of passion.

Yes. And I think. Also with the new generation of drivers coming in the generation of iPads and yes, they have a very different mindset. Yes. [00:30:00] And that will change how we look at going from A to B. And the same thing is you can see the growth of this scooters and micro mobility and people are using electrical scooters and so on.

And this is becoming a trend. And I think it's, we'll have a different way of looking at the car, a different way of looking at how to even serve the car or, maintain the car, because these cars will have a lot more mileage than any https: otter. ai One driver, you will use the car in a different way, much less kilometers compared to a car that is continuous on the road.

That is correct. So we will, but at the same time, we will have maybe less cars on the road, which is going to be having an impact on the sustainability. So I think this is. A very interesting, we still have to see, we still not there yet, [00:31:00] but I think there's a lots of initiatives. It could be government initiative companies.

There is a lots happening there. I've looked at an application in the US where while you can rent out your cars while your car, it's just an application. It's like the Airbnb of cars and I, yes. And so the last time I was, and the U S and we wanted to rent a car. So I call a friend of mine.

I said, I want to rent a car during the weekend. I said, why do you want to rent? Check this out. Okay. And I downloaded the app. And he said, you can, then you look at, you put your location, you put your credit card, and it will tell you all the cars around you. And these are, so you can put your cars there, you park your car and you put it online.

And you would say, and then depending on how much you want, how many days, what kind of a car you want and so on. And at that time, I wanted to try a muscle, American [00:32:00] muscle car. Yeah. So it was, it's, it is very interesting and I was a bit worried, how do I receive the car? How, where is the key?

Where do you drop it? Where do you, where do I it up? How does it work? , and then it was way easier than I, I expected I worked to the car. On the app, the car was opened using the app. Once you activate, your credit card and so on, then you drive. That's it. After you're done, you park the car.

That's it. And you say, okay, I'm done. It's completed. Wow. That's very smooth. And it's suddenly have opened up. So everyone's a share. It's a share mobility in a different way. It's even, I think it's very interesting. And I think. We will see more of this coming in and I think it's the way we are today, we do Airbnb or other I think this era is coming and it is not in the future, it is in the very near.

I [00:33:00] think with technology being at a certain level with 5G and so on it's allowing small to medium enterprises, startups come up with very innovative ideas and to actually put those into business working business a lot quicker because I'm sure that in the 80s. If you were trying to get into the car business, you needed huge amounts to be able to invest in and time and resources.

Whereas now a startup can play in a market a lot quicker and come up with some, something so innovative. Time changing. It's an interesting era. Yes. If we look at the other, the micro mobility, I think it's becoming in some cities. I think we have it in Dubai and some areas where. People rent these small scooters and, and I think in some other bigger cities, it's becomes now it could be a bike, could be a scooter, electrical scooter and it's getting a lot of traction.

And I think now [00:34:00] people moving, especially if it's smaller distances, they are preferring to go into that micro mobility because I can take a small scooter. I drop It could be mine. I take it. I remember we had one of our colleagues. He usually would use to come with the, with his electrical scooter, put it in.

And then, because the distance, the walking distance is not too far, but it's too far maybe to work, but yeah. And then you skip all the parking and you just zip in, zip out. And I think yeah. Okay. This is getting also a, let's say the tractions. And I think also many manufacturers into mobility is looking at this aspect.

How do you see this is evolving and is the cities? Ready for this. I think it's like the same thing it used to be the bike lane. Some cities already built bike lanes into their road system, which worked very efficiently. [00:35:00] Whereas some cities you had to share the same road with the cars, then it becomes a bit complicated.

And I see that in multiple cities around the world now with the mobile scooters are, or e scooters as they call them. Sharing the same road then becomes a bit of a safety issue. I think Dubai is one of the first cities in the Middle East which can address that issue. But of course people has to be also responsible, isn't it?

They have to use the curb or certain areas, bike lane if there is any. It's, I think we still have a way to go on that one. And this goes for every city in the world because there has to be lanes for each. If it's bike lane separate, e scooter separate, for the humans, pedestrians curbs as well.

So there has to be a well distribution or else when it's combinated, it becomes complicated again. It becomes a bit of a safety issue. I think we probably will see new regulation and you into addressing that, that segments. Yes. To, because especially if it's [00:36:00] it's the same lane for bicycles and cars.

And so then you would have to have probably driving license for scooters or, so I think as it is a new trend, I think the, also the regulation will evolve. with the number of I recently heard in some cities in Europe, they have banned the e scooters because of, there is no real regulation and how to do people dumping these scooters everywhere.

And correct. It can just drop it. Yeah, exactly. So it's creating also some problems, but I think this is a, the regulation will probably evolve. With the number of a scooter or the micro mobility. Of course, in, in these cases, when there's a safety in sight, it has to be proactive rather than reactive because, you don't want to have obviously an accident to get come with the regulation.

So again, I think Dubai is very good at being proactive in many situations. So in this case, [00:37:00] I hope every city can follow that route as well. Okay, now we looked at all of these transitions and segments and what, how do you see that will affect the aftermarket the spare part, the automotive?

Because then, yeah we see all of these changes. And what will happen in the, when I initially look at it, of course there's a huge change in sight for automotive aftermarket being, in a normal internal combustion engine car, there are more than 2000 parts where it's going to go down to almost 300 to 250 parts.

So there's a bit of a change right there. And then yet it's still not hit fully aftermarket. We started seeing it slowly yet surely, but it's, It has to be prepared, all the garages has to be ready, EV ready they have to be approved eventually. Again, safety issue when the mechanics are working on EVs has to be It's a different challenge.

Very challenging. Even the fire [00:38:00] safety of any, let's say country or city has to be ready for these. If there is an accident, who takes care of what and how do they respond to that? So I guess there's a lot to be adjusted and we have to see how things unfold on those. Now looking at the Middle East and Africa, do you think we I mean, Dubai is an exceptional, maybe UAE is more ready.

We have a very modern infrastructure. all over. But let us look a little bit on the region itself. Do you think the region is ready for EV? And if it's not, what would be the alternative in your opinion? I think wherever it's the, it's not EV ready the country will, of course, will continue with the internal combustion engine.

That's just like we have spoken. But how many years That's, surely everyone used to say after 10 years, everything will be B, but maybe that's not the right way of thinking. However, do we want to achieve that? How fast we want to achieve it out? How ready we are [00:39:00] and how willing to, we want to change.

Because again, of course, for even the cost, right? We never speak about the cost, but if the cost of electric vehicle, the initial purchase, and then the service and the so on, the parts, if it's more than an internal combustion engine, then it's still a bit of a slower adaptation or slower adoption rate.

Whereas if it goes the other way around, and we've spoken about Jordan in this regard, then it goes the other way around. Then the adoption rate is a lot faster. Yeah, sure. Yeah. And I think also a lots of new buyers into the segment looking, what is the secondhand value of my car? If I buy an EV, in a combustion engine, we almost know the value of the car after one, two or three years, especially for well established brand.

I buy the car at X amount. I know in three years I would sell it X minus Y. And, but in a new car, in an EV or a We are not sure. There was an interesting simulation we'd done as a company, because [00:40:00] as we are also a player in this segment, yes we tried to look at what's going to happen to the market in 20 years as a spare part.

And, we are in the bearing business, bell chains, and, related products. And we, we did some work and we had a very interesting let's say eyeopening that I think without doing this simulation we had a help from a very from a consulting company as well, looking at this.

So this, it's a good opportunity maybe to share also with the audience. Yes. So we look at the Middle East and Africa as a specific market because I think there would be a different speed of adaptation of EV and so on in other It's related to the electricity, availability of charging, the cost of petrol, the connectivity of car, the speed, the infrastructure of internet and all, because with EV you need, it's more connected cars and so on.

So we did an interesting simulation the we looked [00:41:00] at the first change we will see, we, I think we did, we done that two years ago, but I can already see that it's confirmed that it's the hybrid. Yes. As we don't have yet the infrastructure for EV, as we don't have, but we still want to save, we want to be more sustainable, so we look at it, that hybrid will be the first change that everyone somehow is ready to adopt.

Correct. And even the cost of hybrid cars is going down is becoming not so difference between a hybrid car and a fully ice engine. And two years from that study, I can look, it is, you look at Dubai taxis, all of them are hybrid. Correct. In that time, we said, is it really people will so that is is one thing.

And. With hybrid as an aftermarket player, you would have all the, even you have more parts than [00:42:00] a normal ICE engine. So it's actually it's it'll give us more time to to adapt for sure. The other interesting aspect we looked at there with the involvement of charging station and connectivity, a lots of people will move into what we call plugin hybrid.

Now. Today, the number of plug in hybrid cars is limited, but I think this would be also interesting for this part of the region because, okay, I drive, if there is a plug in, I plug my cars. If not, yes. Yes. Makes sense. And that give us the flexibility, give us the sustainability, give us, we don't need any more to fight about the charging.

Yes, that's correct. If you can't, you just go for the next. And this is, initially when we started doing this work, it was like, Yeah. Really? And two years ago, it's different than now, and I can see already this. So in this region I think we will see more hybrid, [00:43:00] maybe more plugged in hybrid.

Correct. Of course, adaptation of EV in some cities like Dubai, Abu Dhabi, maybe Riyadh, the bigger city, which with the infrastructure, I think would be easier. Yeah. But if you look in some part of Africa. Where the infrastructure, the electricity, the connectivity is a challenge.

I think we will, hybrid will still be an option because it gives you that cost effectiveness and on the other side, we looked a little bit longer in the scale of time and we looked at. More would be that this shared mobility will become also with. So if you look at the buying power of lots of countries in the region with is not the same as the buying power of, for example, UAE or Dubai.

And then the shared mobility suddenly becomes an interesting part because you don't need to own a car. And so we look at this, maybe we [00:44:00] are, as I said, maybe this is obsolete in a few years, but as it looks with that simulation that the aftermarket we are maybe safer in aftermarket in this region, we still going to have the, but I think we still have to look.

at it beyond the ice engine and the alternative fuel we have to be more ready and to be a bit more dynamic and open because this is this is again a simulation two years old. Yes. It's still, I think until today is correct, but who knows tomorrow one regulation can change everything.

Correct. I think again Dubai plays a big role on this. And that was actually a Dubai taxi has tested Toyota cars, the hybrid cars for certain number of years and returned all the, let's say the results back to the manufacturer to Toyota. And then that way because they tested it in Dubai.

Over a long period of time in extreme weather during summers, and they could relay back to the [00:45:00] manufacturer. And that actually. Made Toyota to make the right changes and to the right improvements. And now that's why we have so much hybrid Dubai taxi on the roads. That was a great way of making a proactive move towards sustainability.

And I think that's why the government has a lot of say in this. If they do the right proactive moves, they can actually steer the whole industry into the right direction, at least to the more sustainable. Which is, I think, everyone looking for exactly sustainable mobility and exactly it helps cities, people, the future, correct?

It's actually before we go to other planets, it ensures us to stay within our own planet. Yeah. I think it it is and a very interesting Time to look at this and I think government and regulation will have a major say in driving that sustainability journey. Yes.

And and I think you, you can see in all of these cities that the if a government have taken an initiative, a proactive initiative, the results are very [00:46:00] different. Correct. Looking at the aftermarket mobility and the evolution and the transformation that is happening in the market, I think I would like to know how Auto Mechanica Dubai can play and maybe discourse this trend and address it.

Do you have anything in mind? We as within Automechanika brand, we love to listen to our clients because you know better than us how the industry is forming or transforming and changing. And we do multiple things to, to address the change. And to become a true reflection of the industry.

And as you probably know, since you're part of our advisory board, we have placed together a multiple professionals, experts in their field from diverse backgrounds to be able to address this actually issue. Because again, we are an organizer as Bessa Frankfurt, we do very well our job. We organize exhibitions all around the world.

But when it comes to the industry [00:47:00] expertise, we have a certain depth. You have the full depth and we need to navigate through the opportunities and challenges of any industry together with our clients and experts. So that's why we put together the advisory board and we had our first meeting the last, two, three weeks before, and we discussed the industry in a neutral setting, in an open setting.

And I loved hearing about what they think the next best thing, how things are changing, what is good, what is bad, what are the opportunities and challenges. Again, we listen to our clients and we shape our shows accordingly, and we'll continue doing that. And that will be the true reflection of an industry because we want to.

Deliver what we promise always. I think it's a great initiative to be able to navigate together. I always look at automechanika as somehow the shadow, the reflection of the industry. You are in the industry, but not in the industry in a way that you, it's a good reflection of [00:48:00] what's happening in the industry and with, I think, Together as maybe exhibitors, as users, governments academics people in the industry, I think we have to communicate and we have to keep the dialogue to, to achieve the best balance of a solution.

And I really, of course, I appreciate what AutomechaniKa and Messe Frankfurt is doing on this aspect. Correct. Thank you. Gazi, love to to have you it was a pleasure having you on the, in the podcast and it was really a pleasure. Any final words you would like to say? Again we believe in the industry as much as you do.

And we would like to welcome everyone from around the world to our Automechanikas. We have now 14 countries. And we're now in Dubai. And the next, we'll be in Frankfurt. We'll be in Tashkent. We'll be in Shanghai. We'll be in Dubai again. Then in Riyadh. We just love bringing [00:49:00] everyone together.

And we believe that as long as we keep the opportunities and the business opportunities for everyone and the education and the exchange of information and networking and in face to face networking together, it will be many years that we're going to be existing together and we'll grow together. So thank you very much for the opportunity.

It's a pleasure to be here. I wish we could even spend more time. I wouldn't mind spending more time with you and hopefully we'll have many more together. Thank you. Gazi, it was lovely to have you on the show. We enjoyed every piece and time that, and wish you and Automechanica good luck.

Thank you. And for our audience, thank you. If you have any comments or suggestions, email us at podcast@mcb.ae . And see you next time. And that wraps another episode of Wikibearings. Don't forget to subscribe for more insights into the fascinating realm of the engineering innovation. Until next time, keep spinning towards greatness.