Truck&Fleet ME January 2023

CONTENTS

INTERVIEW 12

/ EMBRACING

CHANGE

IN THE

UAE T&FME talks to Al Masaood Group Industrial CEO Hani El Tannir

ALSO THIS ISSUE

06 / NEWS FROM THE MONTH The way is cleared to start testing the revolutionary EVOCARGO in Dubai South. LAUNCHES 10 / RAM CHARGES THROUGH The new RAM 1500 BEV stuns visitors at this year’s CES 2023. INTERVIEW 16 / LIFE

AFTER

VOLVO UD Trucks explains how moving to ISUZU should benefit its fleet clients. INTERVIEW 18 /

MAKING TRUST AN ISSUE

Why Saudi Arabia’s JCV is putting trust first to develop the fleet market in The Kingdom. FLEET FINANCE 20 / GETTING

READY

T&FME looks at how SMEs could be affected by the introduction of Corporate Tax in the UAE. MARKET ANALYSIS 26 / THE CV SECTOR IN 2023 Two new reports point the way for the GCC’s fleet and autmototive sectors. PARTING SHOT 32 /

ADMIRAL ON SPEC

The company that wants to bring 5,000 new EV trucks to the region.

IS THIS THE WAY TO GO?

First of all, a happy new year to all our readers at Truck & Fleet Middle East magazine and online. As ever, I personally wish all of you the very best wishes for what promises to be a fascinating year ahead.

If you were hoping for quiet and calm after a frantic couple of years, you may be disappointed to hear that I think that we are not quite ready to put the handbrake on just yet. Without doubt the biggest hurdlse to jump in 2023 if you are operating in the UAE will be the introduction of Corporate Tax for SMEs in the summer. Intended to bring the UAE in line with global tax practices, there is bound to be confusion and uncertainty among fleets when it comes to understanding how their businesses will be affected. Whether that is by way of changes to how they currently trade or, as importantly, how their customers make the jump. Having seen the disruption caused by the introduction of VAT a few years ago (was it really four years ago?!), it would be prudent to start planning now and talking to clients and suppliers alike.

As you might expect, we have been approached by a number of tax experts over the last month or so, and I thought it might be helpful to include their insight in a special feature in this magazine. As you might

also expect, tax experts are quite keen on tax, but I do think there is some worthwhile thoughts as well as explanations on why ultimately it is a good thing – in the long term at least. In any case, I would be happy to hear your thoughts on how your company is planning for it and whether you think it can be ultimately good for your business. Looking back at the big events of the FIFA World Cup 2022 in Qatar and the Dubai Expo 2020 it will be interesting to see how their legacies pan out from a mobility stand point, given both made a lot of noise about the subject. I think from Qatar’s perspective the event was a big success, but will it be lasting? I am sure lots of lessons were learned when it comes to moving tourists around the peninsular, but the jury is out as to whether it will add to its 311 electric limos from Hyundai and KIA, for instance. One thing for sure, the accessibility improvements must stay. Weighing up Qatar versus Dubai’s mobility progress is probably an unfair comparison. I feel the overall planning of transport and transportation, as well as the infrastructure, that remains in place, puts the UAE in a stronger position. The question now is whether it will continue to grow fast enough to make the most of it.

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NETWORK

Dubai South and Evocargo start

UAE’s first

ELECTRIC VEHICLES

Dubai South and Evocargo have confirmed the launch of the UAE’s first autonomous vehicle trials for cargo at the master development’s Logistics District. The trials will see EVO.1, Evocargo’s unmanned electric logistics vehicle, navigate Dubai South’s Logistics District from December until February 2023.

A key objective of the trials is to enable Evocargo to modify and redesign EVO.1 specifically for the MENA region, the two organisations told official news agency WAM.

autonomous truck trials

They added that during the trial period, a remote operator will be stationed onsite in the Control Centre to manage the platform. The centre, located in Dubai South’s Logistics District, includes a software suite to monitor the EVO.1’s operation, check the serviceability of the sensors, and identify any errors.

Mohsen Ahmad, CEO of the Logistics District – Dubai South, and Andrey Bolshakov, Founding CEO, Evocargo, attended a ceremony celebrating the signing of a memorandum

of understanding (MoU) to formally kick-start the trials.

Ahmad commented: “We are delighted to enter into a strategic agreement with Evocargo to launch the UAE’s first autonomous trials, setting new global benchmarks and consolidating the leadership status of the country’s logistics sector.

“Besides improving operational efficiency, our partnership will help scale supply chain operations and achieve sustainability. At the Logistics District, we are mandated

to support the industry and accelerate the UAE’s rapidly advancing logistics sector.”

The lifting capacity of the driverless platform is 2 tonnes, and it can accommodate up to six EUR-pallets moving at 25 km/h for up to 200km. Charging a vehicle for a full day’s operation takes 40 minutes to six hours, depending on the outlet.

Effective fleet management of EVO.1’s automatic pilot systems increases the efficiency of freight transportation while significantly reducing truck downtime.

DHL GLOBAL FORWARDING TO MANAGE DAIMLER TRUCK DUBAI PARTS CENTRE OPERATION

FLEET

New Daimler Truck Dubai Parts Centre will be operated by DHL Global Forwarding and features a dedicated supply chain and logistics team

Daimler Commercial Vehicles MENA FZE (DCV MENA) has agreed to a strategic, long-term partnership with global logistics provider DHL Global Forwarding for the operations and management of its new Daimler Truck Dubai Parts Centre.

The state-of-the-art facility is due to start operations shortly and will serve as a dedicated warehouse for truck parts. DCV MENA says the facility will enable it to better serve Daimler Truck AG customers in the Middle East, and ensure broad and dependable parts availability and short turnaround times.

Commercial vehicles can only generate income for owners or operators when they are on the road. The launch of the Daimler Truck Dubai Parts Centre ensures that customers will be able to easily source a broad variety of parts in the shortest amount of time and keep their trucks on the road for longer periods of time, said the German OEM.

The facility features closed chambers and an operational area of 23,478 m². With 5,000 m² of interlocked open yard storage available at its DWC location, it takes over duties from the MercedesBenz AG Regional Logistics Centre in Dubai. The firm added that the move to DWC enhances Daimler Truck’s position as an independent operator following its split from MercedesBenz AG in December 2021.

GAC APPOINTS NEW GROUP PRESIDENT

FLEET

Gulf Agency Company (GAC), the global shipping, logistics and maritime company, has appointed Pontus Fredriksson as its new group president effective January 2023.

Bengt Ekstrand, who has held this position for the past ten years, will take over as executive co-chairman alongside longtime Gulf Agency (GAC) CEO Björn Inglom.

Ekstrand began his tenure at a time of economic turmoil in the eurozone and widening armed conflicts in the Middle East. Expectations indicate that stagnant oil prices will soon fall below USD$45.00 per barrel. Faced with this period of uncertainty, Ekstrand has launched an extensive reform programme that applies to all GAC sectors known

as Delta21. This was followed by significant structural and operational changes that made the Group more agile, efficient and profitable. He leaves his position at GAC with record results in recent years.

Fredrickson joined GAC in 2007 serving as group VP for the Americas since August 2019. He previously held several financial

and managerial positions in the Middle East, including general manager of GAC in Bahrain.

“Pontus has consistently demonstrated how he focuses on commercial affairs and leadership,” Ekstrand said. “His acumen and industry knowledge have helped him lead the Group towards further success in a turbulent environment.”

AUTOROLA AND AFM AUTO SET-OUT

AMBITIOUS PLAN FOR USED FLEET CAR MARKET

FLEET

Autorola and Al-Futtaim Automotive have announced a new partnership that will set-out with the “mission to reinvent” the region’s B2B used-car market. Their Autorola Middle East & North Africa (MENA) joint-venture will introduce an integrated and end-toend digital platform for the industry, which will “digitalise and simplify” every step of the remarketing process, with consistent, transparent pricing, seamless, automated workflows, and auctions taking place 24/7.

This will allow better trade-in ratios, stock that moves faster, and an improved better customer experience, claim the firms. The pre-owned automobile industry in the UAE, one of the most important in the world, is now valued at US$ 14 billion and is forecast to rise quickly to US$ 20.5 billion by 2025 with an anticipated CAGR of 10-12%.

The current state of the usedcar market is faced with many legacy challenges and painpoints experienced by regional automotive companies, such as: Limited by manual processes

and excel-based workflows, inconsistent pricing, in-person auctions that take place once a week, no vehicle inspection, decentralized remarketing processes and siloed decisionmaking. The new joint-venture’s digital platform will address these key pain points for all automotive companies and usedcar traders within the region.

Autorola MENA explained that its digital platform is customisable and customerfocused, with modules for fleet monitoring, running fleet, ordering and repairs.

MAF RETAIL IN BOOST FOR GREENER FLEETS

The new programme incentivises suppliers that meet sustainability criteria such as using energy-efficient equipment, employing fuel efficient vehicles, and minimizing landfill waste, with favourable financing terms.

LOGISTICS

Majid Al Futtaim Retail, operator of the Carrefour franchise in the Middle East, Africa and Asia, and Standard Chartered Bank says their new Sustainable Supply Chain Finance programme aims to incentivise their supplier partners to improve their sustainability performance and indicators, and address key

Environmental, Social and Governance (ESG) risks within the supply chain.

It is the first launch in the region for an initiative of this kind and the firms say they will work with a diverse range of Carrefour’s most active suppliers in the UAE to introduce a pilot programme ahead of the official programme launch, covering a wide range of categories offered at Carrefour.

Majid Al Futtaim Retail added that the programme, will enhance its own commitment to supporting local economies, producers and suppliers across the markets that it serves from whom it sources more than 80% of its products.

“Today’s announcement is a great moment for Majid Al Futtaim, as it combines two core aspects of our extended responsibilities to the communities we operate in together; supporting our suppliers, and driving our sustainability agenda,” said Hani Weiss, CEO, Majid Al Futtaim Retail.

PRESIDENT OPENS $1BN KHALIFA EXPANSION

LOGISTICS

His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, has inaugurated Khalifa Port’s expansion – a major development project with a total investment of US$1.08 billion.

As part of the expansion, which includes the development of the port’s South Quay, Khalifa Port Logistics, and

Abu Dhabi Terminals at a total investment of US$1.08 billion, Khalifa Port has grown from 2.43 square kilometres to 8.63 square kilometres, while its quay wall has been significantly extended from 2.3 kilometres to 12.5 kilometres.

The port now provides 21 berths in total and offers a range of bespoke services for key strategic industries,

“positioning it among the global elite of deep-water ports, with an estimated value of US$5.55 billion”. The programme is set to make a major contribution to AD Port Group’s goal of increasing handling capacity at Khalifa Port by 2030 to 15 million TEUs per year, and general cargo handling capacity to 25 million tonnes.

LOGISTICS

JD Logistics has opened its second warehouse in Dubai. Joining the company’s global logistics network, the new warehouse can provide end-to-end supply chain services that cover Asia, Africa and Europe for local and cross-border merchants, explained the Chinese firm in a statement. A 20-minute drive from the Port of Jebel Ali, the warehouse is located in Dubai Industrial City, with an area of 12,000 square meters, providing logistics services ranging from concentrated transportation, sea transportation, air transportation, transition, customs clearance to warehousing, sorting, labeling, dropshipping and more, for both bulky and small to medium-sized products, and meeting both B2C and B2B fulfilment requirements, it added.

Adopting JD Logistics’ self-developed management system, the warehouse can digitally manage inbound and outbound inventory, thus precisely predicting the trends and allocating distribution resources accordingly to improve logistics efficiency. The operation utilises Fordeal, an emerging cross-border e-commerce platform in the Middle East. Leveraging the self-developed warehouse management system, JD Logistics says it helps it to build an intelligent inventory management system which can manage inventory digitally and make forecasts and plans accurately. JD Logistics also provides an intelligent packing recommendation system to save more packaging materials.

FLEET

Recent e-commerce research commissioned in key markets across Asia by FedEx Express (FedEx), a subsidiary of FedEx Corp., and the world’s largest express transportation company, shows that small and medium businesses (SMEs) that embraced e-commerce during the COVID pandemic are underestimating the importance consumers now place on sustainability in their purchase decision-making.

75% of SMEs surveyed said their customers are more interested in receiving their goods as quickly as possible rather than in sustainable shopping. 73% of SMEs also thought that receiving goods as cheaply as possible is more important to customers. Insights from consumers show the reality is very different.

The What’s Next in E-Commerce survey polled SMEs and consumers in 11 prominent Asian markets in

July 2022. The poll explored the continuing evolution of e-commerce in Asia and identified trends that could fuel their future growth.

The accelerated growth of e-commerce during the COVID-19 pandemic occurred as consumer concerns over the environment continued to grow. For a significant number of consumers, the future of

the planet is top of mind, and they do not want to compromise – they want both sustainability and speedy delivery. 67% of those surveyed expressed as much interest in receiving their goods quickly as they did in the sustainability of the online shopping process.

The e-commerce research shows that 8 out of 10 consumers expect the e-commerce companies they buy

from to pursue sustainable business models. 7 out of 10 also prefer to buy from companies with an effective Environmental, Social, and Governance (ESG) policy in place. This presents an interesting opportunity for SMEs to invest in more sustainable practices.

Consumers in the United Arab Emirates are also most likely to take sustainability considerations into account during a purchase decision. According to a PwC survey, this trend is also seen across the wider Middle East and North Africa region with 53% respondents saying they will always or often buy eco-friendlier products.

“Sustainability is no longer an optional extra for SMEs interested in expanding their e-commerce businesses. Consumers increasingly see it as an essential and non-negotiable part of their decision-making process,” said Kawal Preet, president of Asia Pacific, Middle East & Africa (AMEA) at FedEx Express.

The Ram 1500 Revolution BEV: A ‘brutifal’ sign?

Among all the CES 2023 announcements, the Ram 1500 Revolution BEV Concept grabbed a lot of headlines with atruck-load of features that signal the way forward for the Stellantis brand.

The entire Ram lineup will offer electrified solutions with disruptive, leading-edge advanced technology in the years to come, promises the Dutch giant, with the Ram 1500 Revolution BEV Concept opening the first chapter on how Ram will push past competitors’ future EV offerings.

“The Ram 1500 Revolution BEV Concept is our clearest signal yet that we’re on the precipice of something extraordinary at Ram

and points directly to where we’re going on our electrified journey,” said Mike Koval Jr., Ram brand CEO – Stellantis at CES. “At Ram, we’ve redefined what pickup trucks can be and will do so again by pushing past what competitors are offering by delivering the best electric pickups on the market.”

The Ram 1500 Revolution BEV Concept is part of Ram’s significant contribution to Stellantis’ Dare Forward 2030 strategic plan to lead the way the world moves by delivering innovative, clean, safe and affordable mobility solutions.

Ram’s exterior design team set out to revolutionise the pickup truck by creating an ultra-modern

concept that boldly claims to exude ‘heroic strength’, or to use their term, “brutiful” – brutal yet beautiful. An animated and modernised “R-A-M” badge features afully animated LED “tuning fork” design. The doors have been reimagined in a grand saloon style opening that showcases acavernous occupant space without aB-pillar. Bright LED lights have been cleverly integrated into the front bumper flares and advancements in lighting are highlighted by fully animated LED tail lamps and badging. Building on Ram’s reputation as North America’s off-road and performance

truck leader, the Ram 1500 Revolution BEV Concept features an integrated fasciadesign with askid plate and new pivoting tow hooks that can sit flush.

New features are thoughtfully integrated throughout and include anew powered frunk with onetouch open-and-close functionality that adds capability and storage. Other powered features include apowered charge-port door, situated on the driver’s side front quarter panel, apowered tail gate, flush-mounted door handles, powered side steps and apowered rear step with active diffuser round out the extensive list of powered features. The concept features

sideview mirrors that are smaller, more lightweight and use 3-D printed materials for optimal aerodynamics and reducing drag. The sideview mirrors use adigital camerato capture the truck’s surroundings, allowing for asmaller physical size.

The charge port illuminates and blinks while charging. An audible sound will signal it’s plugged in and charging has begun. The charge port

ALL-NEW INFINITI QX60 LANDS IN THE UAE

FITTED WITH A PANORAMIC MOONROOF, INFINITI’S NEWEST SUV ARRIVES IN THE UAE WITH FOUR VARIANTS

Al Masaood Automobiles - the automotive arm of Al Masaood Group and the exclusive distributor for INFINITI in Abu Dhabi, Al Ain, and the Western Region – has officially launched the new INFINITI QX60, “with its bold and stand-out looks”, across all of its showrooms in the national capital of the UAE.

The new QX60’s latest technology delivers smoother driver-support capabilities and enhances features that seamlessly connect to the vehicle’s navigation system to support the driver proactively in situations such as highway off-ramps. The SUV’s “graceful, athletic proportions and exquisite detailing” give away its 279-horsepower, 3.5-liter V-6 engine, which is protected by a mesh grille with delicate folds that is inspired by origami and “highlights the Japanese design essence”. Meanwhile, the innovative ProPILOT Assist feature of the SUV is designed to reduce the stress of stop-and-go driving by helping control acceleration, braking, and steering during single-lane highway travel, while the sensors detect and warn when someone enters the blind spot of the vehicle. The SUV’s construction and array of onboard active safety measures work together with these innovative technologies to provide its driver and

passengers confidence and comfort that each journey can be finished more quickly.

Irfan Tansel, CEO, Al Masaood Automobiles, said: “The INFINITI QX60’s arrival reinforces the brand’s leading market presence in Abu Dhabi. The QX60 has long been a favourite of our Abu Dhabi customers, and the new model raises the bar for other SUVs in this class with its distinctive appearance and cutting-edge driving aids. The all-new INFINITI QX60 offers a personalised driving experience that guarantees drivers stay secure, connected, and engaged on every trip. It is equipped with an amazing array of smart technology for safety, entertainment, and performance.” Customers can check out the smart technologies offered by the luxury SUV at Al Masaood Automobiles with its new advanced, high-end versions available in four categories.

DIVERSE

THINKING

Hani El Tannir, CEO, Al Masaood Group Industrial talks to T&FME about the importance of

diversification and improvement

Over the course of nearly four decades in the business, Hani El Tannir, has helped enhanced multidisciplined operations from the ground up, as well as developed expansion and cost-optimisation initiatives for several companies in the Middle East. Today, Tannir serves as the chief executive officer of Al Masaood Group Industrial and draws on his manufacturing, logistics, diversification, and business development experience to address the challenges facing businesses inside the equipment and commercial vechiles sectors, and the market they serve. In a wideranging interview, he talks to T&FME about the challenges and the changes we face.

Mr El Tannir, we appreciate your time. Please give our readers an overview of your career background and your role at Al Masaood Group My experience mostly lies in manufacturing, logistics, diversification, and business development. Today, as the CEO of Al Masaood Group Industrial, which is a part of Al Masaood Group, I took the lead of six different units – including Power Division, Commercial Vehicles and Equipment Division (CV&E), Projects and Engineering Services Division (PESD), Al Masaood Bergum LLC, Al Masaood Tyres, Batteries & Accessories Division (TBA), and ARB Emirates, and work closely with their Leadership to drive our Strategies and assist in their operational needs. All these industrial entities have integrated sustainability as a top priority into their business strategies to help accelerate the UAE Sustainability Targets and the UAE Net Zero 2050 strategic initiative. We are delivering innovative sustainable products and services across industries, with a focus on the oil and gas, power, utilities, trucks and equipment, Tyres and Batteries, and modular systems sectors, as well as Retail of Off-Roading accessories. And we have just launched our 7th business unit, Equipment Rentals.

After all these decades, what still excites you most about your role and the company?

I feel part of a family and my philosophy resonates with the Al Masaood Group’s objective of autonomy in the workplace and sustainable growth, thus everything I do excites me as I can connect with it. At the Group Industrial, we are on a constant quest to innovate and deliver quality solutions

BRANDS IN THE HANDS OF EXPERIENCE

As CEO of Al Masaood Group Industrial, Hani El Tannir brings years of logistics and business expertise to oversee the many divisions of the firm and major brands such as Renault Trucks and UD Trucks.

to our customers to further cement our positions in various sectors. Working with the Divisional Leaderships, I lead key business development initiatives and create new revenue streams. My main focus is to continue to diversify and foster sustainable development initiatives and ensure continuous innovation in our business strategies and offerings.

Mr El Tannir, the Al Masaood Industrial Division reaches across such a broad range of sectors, you must gain a unique perspective on the market. What is this bird’s eye view telling you about what we all

THE QUEST TO INNOVATE

may expect in the year ahead?

Al Masaood Group Industrial has positioned itself in a variety of economic sectors in the UAE throughout the years. By maintaining the momentum, we will strengthen our relationships with stakeholders while directing our product offerings towards sustainability and renewable energy sources and ensuring that what we offer is always relevant to our markets. Additionally, we will remain engaged in local public-private partnerships to develop fresh and promising economic opportunities. We believe that diversification is a strategic move that will support our expansion and growth. Therefore, we are actively seeking diversification into the manufacturing sector to develop products and services that are specifically designed to address the needs of each of our customers. This also entails expansion of our service activities and constantly seeking to improve.

Last year saw a move by your Power Division, which also celebrated its 50th anniversary, to bring innovation into the regional market with SHAMS+. What are your ambitions for this initiative?

As a pioneer in the energy sector, Al Masaood Power Division has taken the lead in offering sustainable technologies and innovations that will contribute to lowering carbon emissions and accelerate the goals of the UAE Net Zero 2050 strategic initiative. One such innovation is SHAMS+, the first UAE-built ultra-fast and intelligent charging solution for marine hybrid and electric vehicles. This solution is

Hani El Tannir says that Al Masaood Group Industrial is on a constant quest to deliver innovation ot the market and will continue to diverify its strategy and approach.

Everything I do excites me as I can connect with it”

unique since it forgoes a traditional electrical supply in favor of solar energy. Therefore, it is an ideal solution for marine docks, deserts, agricultural fields, and interstate highways.

SHAMS+ provides the fastest solarpowered charging speed starting at 25 minutes through a broad network of charging stations that can accommodate all the battery charging needs of the automotive and maritime industries. Furthermore, the innovative mobile and internet-based ventures would hasten the global maritime and transportation sectors’ decarbonization, making them a unique technique that balances voltage fluctuation

for stable charging. The solution also includes software to gather, examine, and interpret consumption data. To operate more efficiently and save money, EV drivers would be able to remotely monitor charging sessions and obtain accurate energy-usage data. It also operates cordlessly for greater flexibility and easier installation in various urban and rural sites, including agricultural areas, as well as at marine ports and hubs, providing customers with the highest level of convenience and efficiency.

As a Group, you put a lot of emphasis onto sustainable diversity,

how does that shape your decision making when it comes to finding new brands or initiatives to partner or be involved with?

As a diversified Group, we at Al Masaood Group Industrial believe that diversification is a strategic mindset that safeguards the Group against challenges while also growing revenue and profits. We are continually seeking sustainable and innovative solutions across a wide array of industries as well as bolstering our relationships with stakeholders to better society and the environment. This we are doing in a combination of internal developments as well as partnerships with global leaders. Earlier in 2022, we also collaborated with Sunstream International to introduce the next-generation plugand-play solar system, the “Oryxbox”. This solution can be beneficial for activities in the oil and gas, mining, construction of roads, and agricultural sectors.

Many of our readers are business leaders themselves in the fields of mobility, transportation, logistics and the automotive sector, what advice can you give them in terms of ensuring their business are ready for the challenges and opportunities ahead?

I would hope that what we are doing to diversify and develop within a Sustainable framework underlines our strategy.

How much work does Al Masaood

AT THE HEART OF INDUSTRY

Al Masaood will continue to seek investments in major industries: “as we have always done,” says Tannir, adding that the Group wants solutions and products which help the development of the UAE’s industrial development.

A TEAM BUILDING BRANDS AND PRODUCTS IN THE MARKET

The Al Masaood Tyres, Batteries & Accessories Division (TBA) is a distributor of the full Bridgestone Tyres range for vehicles in Abu Dhabi, and an example of how the brands under the Al Masaood Group Industrial are bringing technical expertise to clients.

My main focus is to continue to diversify”

Unveiled

put into its customer services operation? How do you see this side of the business evolving?

It is not enough to sell a product or a service. The Group’s values have always been about ensuring that the client is happy with the ‘solution’ that we are providing, and thus we have always invested in after-sales Service and Parts; this is through world class facilities, a trained technical staff, and the emphasis that it is ‘solutions’ we are selling, not just a product. Additionally, we carry out a lot of training to the technical teams of our clients. This is the Group’s value that has stood us in good stead, and I hope that we continue to honour this tradition.

The UAE continues to develop rapidly, how do you continue to keep pace? Are there any national or major initiatives that excite you?

The rapid growth and development in the industrial sector of the UAE stipulates the provision of the tech-driven products and services to help us better serve the customers. We have worked and continue to work with global businesses to bring fresh solutions to the UAE in order to achieve this goal. With this, we are ensuring that diverse local industries have access to the recent technologies. We

year,

have become a part of the Ta’ziz project, which was started by ADNOC and ADQ, and aims to support and enable the expansion of the Ruwais Industrial Complex and Abu Dhabi’s chemical, manufacturing, and industrial sectors. As one of the first Emiratiowned private enterprises to be a part of this project, we are focusing on the potential of light industrial services for the services and healthcare sectors – including maintenance support, industrial processes, and facilities management solutions. We have further expanded into the manufacturing sector to cater the needs of each of our customers. This is in line with the UAE’s industrialisation policy and the “Make it in the Emirates” campaign.

The Power Division team was in Egypt ahead of the COP27 meeting at the end of 2022 – is this a sign that you are looking to extend your reach across the region?

At Al Masaood Group, diversification of product and service lines will open the doors towards regional expansion too. Our participation in events such as the Environment & Development Forum (EDF) 2022 in Egypt reflects our efforts to promote sustainability and achieving net-zero emissions not only in the UAE, but also across the region. During the

event, we showcased our innovative sustainable solution, SHAMS+, which marks a new chapter in our sustainability journey in the UAE and beyond. The solution will drive EV adoption in the Gulf region’s industrial, construction, and marine sectors, in addition to assisting in the decarbonization of the transportation sector. And apart from our Power Division, other Divisions are also evaluating or have started regional expansion too.

What else should we be looking out for from Al Masaood in the months and years ahead?

We have aligned our major strategies with the “UAE Industry 4.0” initiative, which intends to advance the UAE’s industrial base into a sector that is competitive, efficient, and sustainable on the world stage. To support the country’s net-zero ambitions, we are embedding sustainability into all our value offerings and reducing carbon emissions. We will continue to seek investments in paramount industries, as we have always done, in line with the vision set out by our wise leadership. Meanwhile, to better address the needs of the economy and the nation, our operations and business model have evolved with time. We will seek to continue to be adaptable, innovative, and agile in the years to come.

We are continually seeking sustainable and innovative solutions across a wide array of industries as well as bolstering our relationships with stakeholders to better society and the environment”

OFF-THE-GRID POWER AND NETWORKING

last

SHAMS+ provides fast solar-powered charging speeds and will be installed into a broad network of charging stations that can accommodate battery charging needs across the automotive and maritime industries.

STRATEGIC

THINKING

T&FME talks to UD Trucks about life under ISUZU and expanding its UAE network

Truck & Fleet Middle East has been following the progress of UD Trucks in the region for almost a decade. Once an up and coming newcomer as part of a Volvo Trucks triumvirate alongsideits more well-established (in the region at least) brands of Renault and Volvo, it is now a bonafide option in its own right for fleets looking for European reliability with Asian robustness and affordability.

It is also now under the wing of ISUZU and keen to pass on the message that fleets will see few changes under the hood and better all-round support for their operations. The latest medium duty Croner and longhaul Quester updates certainly impressed in our test drives at launch and Jacques Michel

- SVP International Sales was in recently in Abu Dhabi to talk about the move to ISUZU and the expansion of its UAE network.

In a special media briefing covering a number of topics (“Saudi is doing super well, there’s a revolution going on there, the transformation of Saudi is unbelievable”) he explains that UD Trucks will continue to benefit from a strategic alliance between ISUZU and Volvo and is preparing for an exciting future in the region and beyond.

“There’s three pillars under that strategy. One is creating the biggest Japanese OEM in the commercial vehicles business. The second one is creating a technology alliance. The technology transformation of our industry requires electro-mobility. This is very simple thing which everybody talks about, right? On the road this

morning, you could see more and more electric cars here. And I say even because here is not where the oil price is the most expensive. What does it take to get this game? Then it probably means a lot of money of investment, you need to get the scale of economies. To be able to do that, you need mass production. And that’s one of the biggest pillars of our strategy.”

Turning to the third part of the strategy he says that it is important for both ISUZU and Volvo Trucks to see how they can combine efforts in future business development. He suggests to T&FME that rather than looking at UD Trucks as being under a different umbrella, the focus should be on the technologies that both parties in the Alliance will bring to the table as they confront a new era in transportation.

Everybody is working with everybody as you cannot do everything yourselves”

“On driveline technology, for example, and electro-mobility and connectivity, we are working towards an alliance. There could be a lot of things happening behind the scenes,” he teases. “We have a new 100% shareholder that is ISUZU and that’s not something to hide. What does it bring to the table? It brings a position of strength in the segment and when it comes to new technology development.”

He adds: “We will be very happy to invite you in a couple of months to see the outcome. The future, I can promise you, is fantastic.”

Michel is sitting with Mourad Hedna, UD Trucks’ president for Middle East, East & North Africa, to discuss the opening of their new dedicated service centre in Mussafah alongside Hanni Tannir from local partner Al Masaood Commercial Vehicles and Equipment. Hedna says the brand-new state-of-the-art service centre will help UD Trucks to meet growing demand without compromising on quality or customer satisfaction, and by putting a high value on uptime it will provide “uncompromising support” to fleets in Abu Dhabi.

The new facility doubles UD Truck’s servicing capacity, providing service space for 30 trucks and 12 body repairs. The number of technicians has also increased substantially from 21 to 39.

“We have done fantastic work here in Abu Dhabi will Al-Masaood in waste management, for example,” continues Michel. “I can promise you with what’s coming on the back end, we will be fully aligned with Al Masaood… we don’t need other brand partners here.”

Coming back to the theme of collaboration, Mourad Hedna says that while UD Trucks can now focus on dedicated local support, on a macro – global – scale the company must continue to work with others in the industry. In fact, the whole industry must continue to work together to confront the challenges of truck development as we head into the middle of the 21st Century.

“Everybody is working with everybody as you cannot do everything yourselves,” he explains. “You see in Europe, two big competitors Daimler and Volvo have a joint-venture. ISUZU and Honda also have a very strong fuel cell partnership. There are a number of uncertainties as you don’t know which technology will ‘win’. I think for us we have access to ISUZU and Volvo as part of the 20-year partnership in technology deal. So, it will add more benefits for us.”

Having covered the three main pillars of UD’s strategy the conversation

service support, which means adhering to efficient and clear standards. The unwavering premium service that we aim to deliver needs to be complemented by having the right instruments to execute our approach. We firmly believe that our long-standing partner, Al Masaood, will serve our customers in their newly established location with unmatched tenacity, providing excellent aftersales services and ensuring our promise, To Go the Extra Mile.”

The workshop is expected to strengthen UD Trucks’ market share by providing ‘sustainable’ aftersales services, while Al Masaood commitsto providing the highest standards of support to UD Trucks customers on a larger scale. Also included in the expanded workshop will be a large parts warehouse, which will result in faster turnaround times.

moves to a fourth: Sustainability.

“We want to be a sustainable business, because if we are not profitable we will not be sustainable but then we have a fourth pillar which is towards the environment. We want to be the Japanese sustainability leader,” says Hedna.

The opening in Abu Dhabi

By focusing on providing and delivering the highest quality customer service and after sales support, the new Abu Dhabi workshop reflects the commitment of both UD Trucks and Al Masaood to positively contribute to the Abu Dhabi and Al Ain communities in accordance with the Abu Dhabi 2030 vision, which seeks to develop a resilient and sufficient infrastructure that can support economic growth in the years ahead. Hedna says: “At UD Trucks,

Mohammed El Zeftawi, general manager of Al Masaood Commercial Vehicles and Equipment, says Al Masaood CV&E Division and UD Trucks have enjoyed a long-lasting relationship that is built on a shared vision of offering customers sustainable end-to-end sales and aftersales services.

“Our much-anticipated M40 facility will help us achieve our common objectives and will further strengthen our relationship,” he added. “Besides offering excellent after-sales services on a larger scale, the new workshop also has a sizable parts warehouse, which will greatly reduce turnaround time, further enhancing the overall customer experience.

“We look forward to continuing to build our partnership with UD Trucks, which was established in 1981, as part of our commitment to consistently improving the experience of our customers in the region.”

we strive to provide uncompromising

What does it bring to the table? It brings a position of strength in the segment and when it comes to new technology development”

THE NEED FOR COLLABORATION

Mourad Hedna says the challenges facing commercial vehicle development demand greater collaboration between OEMS and the wider industry.

“OUR FUTURE WILL BE FANTASTIC”

Jacques Michel feels that a 20-year development partnership with Volvo Trucks means the move to ISUZU puts UD Trucks in a position of strength.

A LIGHT

The growing need and reliance for light commercial vehicles has arguably been the story of road transportation in the past half decade. In the rapidly developing Saudi Arabian market, the government’s audacious Vision 2030 plan and a boom in the manufacturing, retail, e-commerce and logistics sectors has led to a realisation that the market needs to invest in its own lighter trucks to get finished goods and materials into the Kingdom’s sprawling and increasingly congested urban centres.

Juffali Commercial Vehicles (JCV), the authorised general distributor in the Kingdom of Saudi Arabia of Daimler Truck

AG, represents Mercedes-Benz Trucks, MCV Buses, EvoBus, and Mercedes-Benz Vans in the market. Recognising that it needed to extend its portfolio to cater for the evolving needs of fleets in the market, JCV spotted and took the opportunity to bring another Daimler Truck brand, Mitsubishi Fuso Truck & Bus Cooperation (MFTBC) and its FUSO range of trucks and buses into its ranks.

FUSO offers a range of commercial vehicles from light, medium, and heavy-duty trucks and buses, to industrial engines and connectivity solutions for over 170 markets worldwide. A longstanding landmark in Japan’s commercial vehicle landscape, the brand has leveraged Japanese quality and craftsmanship over the decades. FUSO is

particularly renowned for its offerings in the light-duty segment and the claims the top market share in various markets around the world. This year marks the 90th anniversary of the FUSO brand, another milestone in its continuing legacy of setting benchmarks in efficiency, safety, and comfort. Without doubt, the headline act at FUSO is the Canter – one of the world’s most popular and famous LCV lines. While CEO Heiko Schulze said that the move of FUSO into the Saudi firm’s showrooms enabled JCV to offer a fresh perspective to the commercial vehicle market as a full-range supplier, the addition of the Canter puts it in prime position to enable fleets who need a lighter touch in their ranks to be successful.

According to JCV, the Canter is already a favourite of the Saudi market due to its durability and reliability – qualities which are necessary to match the demanding conditions of the region. Several thousand units of the Canter are sold in Saudi Arabia every year. Further supported by a range of light- to heavy-duty trucks and light-duty buses, the market is also among the largest for the FUSO brand in the MENA region in terms of unit sales, second only to the United Arab Emirates.

Having started the assembly of Mercedes-Benz trucks almost half a century ago. NAI, a joint venture between Daimler Truck AG and its general distributor has begun assembling the light-duty Canter trucks for the first time in Saudi Arabia. Saudi Arabia has been one of the fastestdeveloping economies in the world in recent years, with the latest projections placing the GDP growth rate in 2022 at over 7%.

The Kingdom’s Vision 2030, which strategically outlines a diversification away from oil exports, is driven partly by multiple infrastructures and urban development mega-projects. The framework includes new destinations for sustainable tourism, public transportation networks, and industrial parks targeting future technologies. While FUSO vehicles have been in the market since 1973, with these large-scale public investments, the trucks, and the Canter in particular, will play an even more important role in Saudi Arabia in the years ahead. The start-up of assembly at the NAI’s plant in Jeddah, where the Canter lines will run alongside the manufacture of Mercedes vehicles such as the Actros, means reduced waiting times for fleets needing to keep pace with the booming Saudi market.

NAI has remained one of MercedesBenz’s leading factories outside of Germany and was awarded ISO-9001/2000 Certificate in 1994. JCV backs up the operation with the best quality products, reliable service, and the supply of Genuine Spare Parts to fleets in the Kingdom, ensuring that Canter customers will also be able to rely on decades of know-how and support.

In 2017, the eCanter became the first series produced all-electric light-duty truck in Japan, and FUSO promises customers a “Future Together.” This bold claim continues to drive the brand’s contributions to safe and sustainable transport. But it could also define the Saudi fleets who fall in love with the adaptable light truck that brings flexibility to a dynamic and ever-evolving market.

DEDICATION TO THE SAUDI VISION

Over the last seven decades, Juffali has contributed to developing Saudi Arabia into the modern economy it is today. It remains a major employer with the new FUSO assembly providing jobs and skills for local talent.

FIVE DECADES OF SAUDI ASSEMBLY National Automobile Industry (NAI) was founded in 1974 as a joint venture between Daimler AG and E. A. Juffali & Brothers to assemble Mercedes-Benz trucks locally. NAI became the first factory of its kind in the Middle East and was awarded ISO-9001/2000 Certificate in 1994.

NO ESCAPE?

Ttax was the only one of life’s inevitabilities that most SME businesses trading in the UAE did not have to be wary of. Then VAT came in at the beginning of 2018. Predicted by experts but hoodwinking many in the market, the introduction of a 5% levy on goods and services sparked concern that businesses would struggle to comply and that their customers would hold back on spending.

Cue, a slew of offers on vehicles to encourage buyers to dip in before the new tax came into place. While that entrepreneurial push was largely successful, many distributors were still knocking off the 5% months later to get rid of stock. The lesson then, for all, is that when it comes to tax there’s no hiding place and now is the time to get ready for the 1 June, 2023 when all businesses’ net profits will become subject to UAE Corporate Tax (from the beginning of their first financial year that starts on or after 1 June 2023.)

In the past, individual emirates have balanced their own tax decrees and the need

to stimulate their economies with Free Zones acting almost as tax havens that incentivised establishing businesses within their boundaries with a slew of benefits. That situation now changes particularly for businesses drawing an income from within the UAE. The UAE’s ministry of finance issued a set of guidance in December in an effort to provide clarity and formalise its Federal Decree-Law on Taxation of Corporations and Businesses. So, what’s the damage? In short, the UAE’s Corporate Tax regime will levy a standard rate of 9% for taxable profits exceeding AED375,000. Profits up to and including that threshold will be taxed at a 0% rate to support small businesses and start-ups.

That threshold will prove crucial for many fleet owners but, for context, an amount that equates to $100,000 is still relatively low versus, say, the value of a new vehicle. But there could be other ways to lower your exposure and negate the impact on your business.

The Ministry of Finance itself describes the new tax as an important milestone in building an integrated tax regime that aligns it with other

countries (it says the law places in line with the OECD Inclusive Framework on Base Erosion and Profit Shifting which introduces a global minimum tax for multinationals, “enhancing tax transparency and preventing harmful tax practices”) but still supports the strategic objectives of the UAE and enhances its global economic competitiveness, “as well as provides the national economy with sufficient flexibility to deal with and support international financial systems within the framework of the UAE’s established partnerships.”

In the post-World Expo 2020 market, the UAE has recognised that it also needs to protect a diverse economy and the importance of driving sustainable development. It says that it involved relevant stakeholders through public consultation and took into account feedback and views in the final design of the Corporate Tax regime. The Ministry believes that the 0% threshold for taxable profits up to and including AED 375,000 will also protect the vital role of start-ups and small businesses in the UAE’s economy. The 9% standard rate certainly ensures

If you’re an SME in the UAE now is the time to prepare for the new Corporate Tax

This issuance is a significant milestone in the history of the country and a major boost for the national economy”

that the Corporate Tax regime is amongst the most competitive in the world and experts agree that it will strengthen the UAE’s position as a global business and financial centre.

The ministry has noted that exemptions from Corporate Tax are highly targeted. Natural resource extraction activities in the country are exempt from Corporate Tax; however, they remain subject to existing local emirate-level taxation which pre-dates the new rules. Other exemptions are available to organisations such as government entities, pension funds, investment funds and public benefit organisations due to their vital importance and contribution to the social fabric and economy of the UAE.

Existing free zone entities will be eligible to benefit from a 0% Corporate Tax rate on qualifying income. Eg, if that income is from outside the UAE.

Other noteworthy details include rules that state that the Corporate Tax will not be applied to salaries or other personal income from employment, whether it is earned from work in the government, semi-governmental or private sector. Interest and other personal income earned from bank deposits or savings programmes are also not subject to Corporate Tax, as well as investment in real estate by individuals in their personal capacity.

According to Vikas Panchal, general manager - Middle East, Tally Solutions, says the UAE has always been at the forefront of innovation and change and describes the new rules as a positive transformation for the country’s alignment with global community for taxes.

“While there are several apprehensions about the implementation of corporate tax, it is to be noted that most SMEs have adapted to digital transformation with the introduction of VAT a few years ago which will

enable them towards a seamless transition to this new tax implementation,” says Panchel.

Overall, the corporate tax announced by the UAE government will be a guided approach for the UAE’s SME community, that will benefit in a higher business valuation, more investors, and increased opportunities.

“This issuance is a significant milestone in the history of the country and a major boost for the national economy. The 0% threshold for taxable profits up to and including Dh 375,000 in recognition of the significant role that start-ups and small businesses play in the UAE’s economy, and the 9% standard rate ensures that the UAE’s Corporate Tax regime is amongst the most competitive in the world.

“This will further strengthen the country’ position as a global business and financial centre. Overall, the corporate tax announced today will be a guided approach

MARKET LEADERSHIP IN IMPORTANT MARKETS

While industry experts and financial analysts hail the UAE’s move, what does the introduction of this new tax mean for businesses in the region, particularly small and medium businesses (SMBs)?

• Reduced Compliance

Pressure: The corporate tax regime has been curated in a way to adhere to the best practices around the world

and reduce the compliance burden on businesses. The new tax law will strengthen the UAE and GCC economy and attract well-meaning small and startup businesses from across the world

• Reduced Tax Serves as a Boon: It is to be noted that the rate proposed is lower than other jurisdictions, which makes it a big boon for the

SMEs. To support small and medium size enterprises there will be a zero-tax rate for taxable profits up to Dh375,000 ($102,000).

for the UAE’s SME community, that will benefit in a higher business valuation, more investors, and increased opportunities.

“For a smooth transition to the corporate tax era, having a powerful integrated business management software should be the top priority for SMEs in the UAE. This can help generate quick business reports across accounting, inventory, and compliance along with easy management of daily financial transactions. Moreover, it is advisable to take guidance from accounting and tax experts to ensure 100% compliance.,” he said.

He argues that firms like his can have an important role to play in helping businesses across the UAE with corporate tax both in terms of assisting them understand it and its implications as well as providing simple software which will make compliance easy.

Varis Sayed, founder of Fincasa Capital, also welcomes the move.

“The 9% corporate tax will be a boon for the UAE economy in that it will provide the government with a new source of revenue and, in effect, help reduce its heavy reliance on oil receipts,” argues Sayed.

“We expect that it will strengthen the confidence of investors in the national economy’s growth prospects, seeing the government’s willingness to implement changes vital to globalize the local business culture and making the country internationally pioneering.”

Sayed continues: “The law will not only help make the UAE more prepared for a postoil world, but it will also enable the country to move closer to its goal to become the top nation in the next 50 years. We will extend all the support to entice more international investors to come to the UAE shores and take advantage of the many opportunities here.”

• Robust Business Models: Introduction of corporate tax is an advancement towards building a robust business model, that is not only SME investor-friendly but will augment the growth of the SMEs

• Beneficial for Varied Groups: There will be no tax on personal incomes from employment, real estate, and other investments, or on any other income earned by individuals that does not arise from a business or other form of commercial activity licensed or otherwise permitted to be undertaken in the UAE. Businesses involved in the extraction of natural resources will also be exempt.

PREPARING FOR LIFE BEYOND OIL

Varis Sayed, founder of Fincasa Capital, says that imposing corporate tax to more companies is necessary to ensure the UAE is ready for a post-oil future.

Having a powerful integrated business management software should be the top priority for SMEs in the UAE”

THE RITZ CARLTON JBR / DUBAI / UAE

Honouring

performance

1st February 2023

About The Event

Winning a Truck & Fleet Middle East Award is a recognised badge of excellence amongst clients and peers.

These awards celebrate the champions whose vehicles play a key role in the operations, logistics and projects at the heart of the GCC economy. They award fleets, as well as manufacturers and dealers whose trucks lead the way – whose out-of-the-box innovations deliver critical commercial ‘edge’, day in, day out.

They honour the achievements of the key players responsible for the industry’s dramatic post-Covid re-set.

NEW for 2023, potential winners of the online vote submitted their NOMINATIONS as part of a pre-selection process.

In the lead up to the event, we staged a public vote to find out the market’s preferred winner in each of the open

product categories. A nomination process was also held for most of the technical categories. The most important award, Fleet of the Year, was decided during a judging process conducted by a panel of industry experts ahead of the Awards evening on 25th January 2023 where the winners will be announced.

The Truck & Fleet Middle East Awards is brought to you by Truck & Fleet ME, the market leading trade publications for the sector in the region

Award Nomination Enquiries

Stephen White | +44 7541 244377 stephen.white@cpitrademedia.com

Table Booking & Sponsorship

Brian Fernandes | +971 4 375 5479 brian.fernandes@cpitrademedia.com

Andy Pitois | +971 4 375 5473 andy.pitois@cpitrademedia.com

the champions of the truck and fleet sectors, rewarding outstanding

INDUSTRY/GOVERNMENT AWARD

DISTRIBUTOR AWARD

After Sales Uptime Initiative of the Year Distributor of the Year

FLEET AWARDS

Fleet of the Year (Up to 100 Vehicles) Fleet of the Year (More than 100 Vehicles) Hospitality Fleet of the Year Retail Fleet of the Year Heavy Fleet of the Year Waste Management Fleet of the Year Logistics Fleet of the Year Excellence in Fleet Safety

PRODUCT AWARDS

Overall Truck of the Year New Vehicle of the Year Heavy-Duty Truck of the Year Medium-Duty Truck of the Year Outstanding LCV Truck and Van Award Outstanding Fleet Car of the Year Coach of the Year Tyre Technology of the Year Truck Body Builder of the Year Outstanding Manufacturer of the Year Innovation in Mobility Technology Award

WORLD’S FIRST METAVERSEPOWERED SHOWROOM IS A ‘REVOLUTION IN CUSTOMER EXPERIENCE’

APPS

FIAT Metaverse Store is the world’s first metaverse-powered interactive showroom, claims the Italian brand.

The technology launched by FIAT is, the first of its kind to power an end-toend sales experience in the metaverse, “revolutionising the brand’s entire customer experience. The Metaverse Store features FIAT’s Product Genius - a real person - who is available to answer any customer question in real-time.”

The firm claims the new concept makes the brand a ‘frontrunner in offering an immersive and simple brand experience’.

“At FIAT we are once again the front-runners in offering our customers an innovative and stress-free brand experience. In pure FIAT style, the FIAT Metaverse Store is the first of its kind in the automotive sector. It is a magical experience: an immersive human-driven journey into the world of FIAT. Simple and user-friendly, pursuing the idea of ‘tech it easy’, and accessible for everyone, thanks to its technology,” stated Olivier Francois, FIAT CEO and Global Stellantis CMO.

“In short, it’s our way of making our customer’s experience tailormade thanks to the interaction with a person and even more simple which is in line with our social mission of meeting people’s current need for a simplified life. For the first time, our customers will be able to explore and purchase the New 500 La Prima by Bocelli from the comfort of their homes thanks to a human assisted, instantaneous, realistic, and stress-free process.”

VOLVO’S FLAGSHIP E-SUV COMING IN 2024

DRIVELINES

Following Volvo Car’s announcement that preorders for its first electric SUV are now live in Tier-1 markets ahead of its late-2023 launch, Al-Futtaim’s Trading Enterprises has confirmed that it will introduce the muchanticipated car in 2024.

The EX90 is designed to understand you and its surroundings to help keep drivers and passengers in safe traffic. It can also get smarter and safer over time, as it learns from new data and receives updates.

A new interior radar feature is designed to be accurate and sensitive enough to detect the tiniest movements at sub-millimetre scale – such as those of a sleeping toddler. It’s the first such feature to cover the entire interior of the car, including the trunk.

With sensors integrated in the overhead console, the

roof-mounted reading lamps and the trunk of the car, the new system is the first that can detect sub-millimetre movement in the entire interior of the car. To cover as much of the cabin as possible and sense whether a child or pet has been left in the car, we’ve spaced radars throughout the cabin from front to back, including the rear trunk. Every time you try to lock the

car, the interior radar system is activated and determines whether your car is empty of any people or pets, before it allows the car to be locked. If a family member or pet is detected inside, the car will remain unlocked and the car will display a reminder to check the cabin for occupants on the centre console screen. The car’s climate system can remain on if people or animals are detected in the cabin.

EGA TO SUPPLY CELESTIAL TO NISSAN

BODY BUILDERS

Emirates Global Aluminium, the largest industry company in the United Arab Emirates outside of oil and gas, has agreed to supply CelestiAL solar aluminium to Kobe Steel to make automotive body sheet for Nissan.

The agreement with Kobe Steel will see the supply of EGA’s CelestiAL solar aluminium to one of the largest rolling mills in

Japan. Automotive body sheet is used by the giant Japanese automaker to form vehicle body panels such as doors and bonnets.

EGA currently supplies thousands of tonnes of aluminium to Kobe Steel every year, in a business relationship that stretches back more than 25 years.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “EGA was the first company in the world to make aluminium using

solar power, and we are proud that our CelestiAL metal will now be used in Nissan vehicles through Kobe Steel, as well as those of other leading global car companies. We look forward to increasing our production of CelestiAL over the years ahead, contributing to the decarbonisation of EGA and of end user industries including auto manufacturing. I thank Kobe Steel for their continuing trust in EGA and our metal.”

In 2021, EGA became the first company in the world to produce aluminium commercially using solar power through a partnership with Dubai Electricity and Water Authority, which operates the Mohammed bin Rashid Al Maktoum Solar Park in the desert outside Dubai.EGA expects to vastly increase its production of CelestiAL through an initiative with Abu Dhabi National Energy Company PJSC (TAQA), Dubal Holding and Emirates Water and Electricity Company (EWEC).

THE BENEFITS OF

A GOOD EDUCATION

Glasgow Research and Consulting and Automechanika Dubai look at the changing shape of the UAE Commercial Vehicles market

Technology is quickly changing the UAE’s commercial vehicles market. Industry analysts predict the next five years of growth will be driven by demand for high performance trucks for the logistics, construction, waste management, and specialised long haul transportation sectors.

The upswing is reported in a new whitepaper produced for Automechanika Dubai by Glasgow Research and Consulting, which claims that growth will be in line with the nation’s quick commercialisation and net zero emissions goals. The demand for greater sustainability impact, strong supply chains, and new regulatory requirements are some of the factors driving the upswing.

One technology – telematics was first introduced by Volvo Trucks and has been singled out as a key growth stimulant following initial market pushback.

“Initially, telematics services were not wellreceived by the market,” says Vishal Pandey a partner in Glasgow Research & Consulting’s Dubai office who authored the whitepaper. “Most consumers were unfamiliar with the technology, which along with the expense of installing telematics was an obstacle.”

Telematics allows fleet owners have access to data such as the drivers’ locations, vehicle performance, and fleet status. The technology’s original ‘spy in the cab’ mantle fuelled driver reticence, but that, says the whitepaper, is a thing of the past.

“Consumer education and rationalisation of the cost of subscription and installation of the service have encouraged consumers to use and discover the benefits of telematics,” says Pandey.

The technology’s benefits have far outweighed initial suspicions. “Telematics enables fleet managers to monitor the movements of trucks, as well as specific

The

details like speed, load, and all tachograph data. Telematics improves making it simple to monitor fuel usage. For the effective operation of the vehicles, fleet managers can access precise statistics on driving distance, emission levels, and fuel consumption in addition to receiving updates on vehicle status. Easy-to-access alerts include the date, time, location, odometer information, engine hours, and more.,” the whitepaper states.

Telematics is now a key selling point for truck manufacturers with their transport operator clients integrating the technology to streamline fleet management systems.

Adoption of the technology has soared since Dubai’s Roads and Transport Authority (RTA) introduced a regulation requiring all heavy vehicles to install telematics to curb accident risk, encourage safe driving habits, strengthen the country’s infrastructure, and minimize the financial, human, and environmental impact of heavy trucks.

Additionally, municipality waste management trucks have begun utilising the technology for smooth waste collection and management. “With the help of advanced IoT-based devices, waste bins are attached with sensors. A highly integrated system allows monitoring, managing, and transportation of trash bins, drivers, and vehicles,” says Pandey.

The whitepaper points out that similar to passenger cars, commercial vehicles are going through an electric evolution to reduce pollution and comply with stringent government requirements and environmental standards.

Spurring the shift, the commercial truck market benefits from the support of the government and private organisations and new government policies and incentives in developing the UAE’s electric vehicle infrastructure.

“Due to rising environmental concerns, the commercial vehicles market, like passenger vehicles, is going through electrification to comply with government norms and environmental standards. Light and medium commercial electric vehicles are already introduced into the market,” says Pandey. Highlighting the evolution, the all-electric E-Canter, by Mitsubishi Fuso Truck and Bus Corporation, was unveiled to the public at Dubai’s Expo 2020 while Sharjah’s Bee’ah made one of the most significant orders for Tesla semi-heavy-duty trucks, purchasing 50 as soon as the model was released.

Pandey believes it will be some time before the UAE fully adopts electric heavy trucks. “It is a challenge to see how the electric power demand of the big load of long-haulers is met,” he says pointing out that other carbon emission reduction techniques have been tested. “Dubai Municipality replaced diesel with bio-diesel in its vehicles a while ago,” he explained.

It’s not just tech-heavy and sustainabilitysavvy trucks that are in demand; according to the white paper, there’s also a revival occurring in the UAE’s used truck market. “The Covid-19 pandemic pushed manufacturers and dealers to promote second-hand vehicles as well as the service of leasing trucks,” Pandey says. Leasing trucks are particularly favoured as fleet operators look to limit risk in the light truck market with only construction trucks being limited in the sector due to their performance degenerating after five to six years and so losing their second-hand appeal.

“Ideally, a fleet operator can take vehicles on lease for four to five years instead of purchasing them. After this period, these trucks go on sale for second-hand buyers,” he added.

The Road Ahead

The whitepaper predicts a buoyant shortterm outlook for the UAE’s commercial vehicle markets as the nation’s government moves to diversify its economy and grow investments in construction, food and beverage, manufacturing, retail, and transportation. “High-performance trucks will further prove their market potential owing to their capacity to carry large loads,” says Pandey.

“Additionally, EVs in the high-performance truck market will see some advancements in the coming years. The emergence of new models with their updates and technological advancements is anticipated to boost the market’s growth. Tesla’s Cyber-truck, GMs’ all-electric Hummer and Volvo’s continued progress will have a lot to offer in the coming years. However, compared to conventional trucks, the high manufacturing cost of EVs in the commercial segment could act as a barrier to the UAE’s commercial vehicle market.”

MARKET LEADERSHIP IN IMPORTANT MARKETS

The Middle East’s automotive aftermarket industry is bracing for change over the next five years, according to the latest Automechanika Dubai Market Outlook 2022 – the fourth in the annual survey series conducted by GRS Explori.

Commissioned by Messe Frankfurt Middle East, organiser of Automechanika Dubai, the Middle East’s largest international automotive aftermarket industry trade exhibition, which took place in November. Some 68% of Middle East players surveyed said they anticipate major (48%) or minor (20%) changes in their sector over the next five years, with the key drivers being technology advancement, economic shifts and altered consumer behaviour.

“It is encouraging to see that business forecasts are positive. Sector players are anticipating significant changes over the next five years as technology keeps advancing at a rapid pace, electric vehicles are becoming more accessible, and customer demands become more intricate. The fact that 68% of Middle East respondents say they are ready to face the changes puts the regional industry in a great position for growth and innovation,” commented Mahmut Gazi Bilikozen, Automechanika Dubai’s show director.

“It is also encouraging that an overwhelming 98% are, in some capacity, business ready to tackle these changes and are starting to adapt business strategies to get ahead of the curve.

Over three-quarters of Middle East respondents identify electric, hybrid and solar-powered vehicles as a technology that is already being accepted and will only accelerate in adoption over the next five years, with pricing and government policies being change catalysts.

The Covid-19 pandemic pushed dealers to promote secondhand vehicles as well as the service of leasing trucks”

THE WAY

WE ARE

In a wide-ranging report, Frost and Sullivan issues an update on the automotive scene in the GCC

In the post-COVID time, the GDP of the Gulf Cooperation Council (GCC)—comprising Oman, Kuwait, Qatar, Saudi Arabia, United Arab Emirates, and Bahrain—saw a 2.3% rebound in 2021. In 2022, the GCC is forecasted to fasten the pace and grow at 5.1%. With the rebound of the economy, the market sentiment for the automotive market rapidly grew in 2021.

Along with the recovering market sentiments post-pandemic, two major events have been the main growth drivers of vehicle miles traveled (VMT) in the GCC in 2021:

Increasing women drivers in Saudi Arabia have driven vehicle demand, which also drove the aftermarket; and he six-month event of EXPO 2020 Dubai (which was postponed to September 2021) attracted millions of tourists visiting Dubai and other emirates, which drove tourism-related VMT in the UAE for light and commercial vehicles.

The VMT growth has led to a surge in demand on the aftermarket; however, the GCC aftermarket also has a major challenge with parts supply delay and increased freights, which stem from the strained global supply chain. There are few car part manufacturers in the GCC. Most

car parts, whether original equipment (OE) parts or independent aftermarket (IAM) parts, are imported from Asia, Europe, and the US. Congestions in ports of both export and import countries and in-demand vessel and container rentals have resulted in extended lead times. The lead time to order parts from East Asia has been affected the most, increasing 30% to 60% from 80-90 days (pre-COVID) to 120-150 days. In the meantime, the shipping costs rose by 400% to 500%. The industry expects the situation to last throughout 2022.

The increased landing costs of parts have also led to other spinoffs. Small parts

Supply chain disruptions have caused different levels of impact”

outlets, which are an important pillar in parts distribution in the GCC, suffered to keep customers and margins. Many small parts outlets could not survive the loss of sales in 2020 and the decreased margin due to the high landing costs in 2021 post-pandemic. Others have been seeking support from supplier agents and franchised dealers while trying to maintain customer retention to keep the sales volume.

On the other hand, vehicle service has also been increasingly competitive in the GCC region. As a result of diversifying revenue streams, independent auto dealers have established their own workshops or are partnering with other workshops to expand their business portfolio. In the competitive landscape, workshops are becoming more consumerfocused. They invest in gaining and analyzing market data and studying consumer behaviors and feedback to attract and retain customers.

Every challenge is an opportunity. Challenges are affecting the GCC aftermarket, but they also derive dynamic opportunities for the automotive businesses.

The light vehicle aftermarket revenue witnessed 25.7% year-on-year (y-o-y) growth in 2021 and is expected to grow at a similar pace of 15.7% in 2022. The high growth statistics are inflated due to the global supply chain crisis, during which shipping costs have increased by 300% to 600% for different routes. The shipping costs are expected to gradually reduce from late-2022.

The real growth of market demand is estimated to be ~13% in 2021, contributed by a growing light vehicle parc in the GCC and resumed demands due to recovered VMT post-COVID. The real growth in is estimated to be ~5% in 2022, contributed by the active economic activities in the region.

The GCC light vehicle aftermarket is estimated to grow at a CAGR of 4.8% from 2022-2025, mainly contributed by the increasing vehicle parc. The GCC countries are accelerating the pace of EV adoption, especially in Saudi Arabia, UAE, and Qatar, where there are multiple goals and initiatives set by the governments. As the maintenance cost of EVs is 30%-40% lower than ICE cars, the adoption of EVs is likely to reduce the overall aftermarket revenue. However, by 2025, the penetration of EVs in the total car parc is estimated to be between 0.5%-2% in different GCC countries. The influence of EVs on the aftermarket is less likely to be observed in 2025.

The global shortage of containers is the major “engine” driving up the price of parts. According to Drewry World Container Index,

THE IMPACT OF RISING EV USE

the index increased drastically from $1,500 in Q2 2020 to over $10,000 in Q3 2021. In 2022, it stayed over $9,000 in Q1 and slowly dropped to the range of $7,000 to $8,000.

The surge of freight has resulted in higher landing costs. Franchised dealers have adjusted prices frequently to match the rising costs, especially for fast-moving parts. In the aftermarket, the costs of parts have risen by 20%, on average, in the GCC. Service parts, such as lubricants, tires, batteries, brake pads, etc., have seen even higher fluctuation over body parts, with a 20% to 40% increase in retail price.

Besides costs, the extended lead time

has also been one of the major challenges for wholesalers and franchised dealers in the GCC. While shipping from Europe has mostly resumed to pre-COVID levels, lead times from China and other Asian countries have extended by (30% to 60%) 3 weeks to 2 months. This is mainly due to a global shortage of containers, shortage of vessels, and congestion of ports and customs in export and import countries.

Supply chain disruptions have caused different levels of impact on parts distributors and retailers. The level of impact depends on country of origin and stock planning. The industry expects the situation to continue throughout 2022. The lead time is expected to slowly recover to the pre-COVID level in late-2023; however, the freight index is estimated to stay at about $3,000, even when the global supply chain recovers to a balance of supply and demand.

E-commerce and digital players will also disrupt the traditional parts-distributor business, and workshops will witness the proliferation of specialized players (for example, EV or fleet maintenance). E-commerce of parts retailing has been in a high-growth stage since 2018. With the physical restrictions accelerating the e-commerce adoption in parts retailing during COVID-19, parts online retailing has entered a mature stage in a number of developed economies, such as Italy, Germany, US, China, etc. In the GCC, the automotive aftermarket e-commerce market has been emerging for the past five years at a slow and moderate pace. The restriction of physical activities during the COVID-19 pandemic was a tipping point in which digitalization of the

LONGER WAITING TIMES FOR PARTS

Parts that are made in Far East Asia usually offer competitive prices; however, due to the COVID situation, many parts manufacturers in parts supplying hubs such as China and Indonesia have not resumed 100% operation leading to delays of up to six months. The lead times of parts from Europe

The surge of freight has resulted in higher landing costs”

are shorter at 1-2 months.

As the maintenance cost of EVs is 30%-40% lower than ICE cars, the adoption of EVs is likely to reduce the aftermarket. However, by 2025, the penetration of EVs in the total car parc is estimated to be between 0.5%-2% in different GCC countries.

customer journey with different automotive service and retailing in the GCC accelerated.

UAE and Kuwait have been the pioneers in online parts retailing. In the UAE, online marketplaces like Amazon and Noon have a strong presence and established a substantial online portfolio of parts, especially on consumables like batteries, oil filters, and small accessories like interior organizers and gadgets. In Kuwait, direct selling e-commerce platforms are more popular. Several reputable parts distributors, such as Auto 1 online (KAPICO) and Al Babtain Auto have established their own e-commerce digital-twin platforms.

In 2021, a Saudi-based start-up focused on building an online parts buy-and-sell platform raised $1.8 million in funds, setting the tone for the roll out of the digital retailing era in the auto parts segment in Saudi Arabia.

According to Frost and Sullivan, e-commerce provides customers higher accessibility and transparency. As e-commerce is expected to penetrate further in parts retail in the GCC, a number of parts retailers have actively developed parts e-commerce platforms. Establishing an e-commerce involves a substantial amount of costs for hardware, software and IT human resources. Parts retailers need to understand that parts e-commerce doesn’t necessarily mean establishing their own e-commerce platform.

There could be multiple business models to increase the digital retail footprint. For example, there are parts dealers who partnered with other e-commerce platforms to sell on the marketplace.

A number of automotive players (such as car dealers and rental companies) have established their own garages/body shops. Businesses are

E-COMMERCE MEANS GREATER ACCESSIBILITY

According to Frost and Sullivan, e-commerce provides customers higher accessibility and transparency. As e-commerce is expected to penetrate further in parts retail in the GCC, a number of parts retailers have actively developed parts e-commerce platforms.

THE NEED FOR FLEXIBLE PARTS SOURCING

The delicate supply chain

trying to achieve several benefits by adding car services as part of the revenue stream by: Diversifying business portfolios and revenue streams; and by lowering costs by servicing their own vehicle fleet, in some cases, taking control and ensuring the quality of car service. For example, CARS24 in the UAE has invested in its own facility to refurbish the used car inventory to control the quality of the refurbishment and the claim of the warranty policy.

There have also been new workshops in the market targeting niche customer segments, which mostly stem from shared nationality or culture. For example, in the UAE, with many Chinese nationals moving into the country since 2020, several workshops were set up to service the Chinese community. With the advantages of Chinese language and social

media tools, the workshops have successfully gained the business of the community.

The quality of the car service is a key to customer satisfaction for workshops. However, to capture and retain customers in a competitive landscape, it is important for workshops to improve their customer journey to increase customer satisfaction beyond the car service; for example, ease of booking service, customer reward program, working on customer feedback, etc. dealers have restructured their operations to create a comfortable customer experience for female drivers. They set up women lounges in the service centers or the 3S facilities, providing privacy and comforts for female customers. A number of OEMs and franchised dealers have put more efforts than others, including training salesmen, test drives, aftersales, customer touch points, and referral programs.

They retouched every detail to build a female-driver community. For example, a car dealer in the central region put efforts into upgrading the 3S facility since 2021. It redesigned the service center and upgraded the women lounge, offering a comfort area with privacy for female customers to wait for the vehicle delivery.

A comfortable couch, coffee machine, free Wi-Fi network, and lady’s room inside the lounge are now standards for the women lounge. The three car dealers who have upgraded the female lounge are also in the top five in new car sales among female buyers post-COVID.

According to the International Trade Administration (ITA), female drivers are estimated to drive new car sales by 9% annually until 2025 in Saudi Arabia. As a former predominantly male-focused market,

The lead time to order parts from East Asia has been affected the most, increasing 30% to 60%”

it is important for car dealers to rethink their customer journey to create a sense of safety and comfort for female customers.

From car sales to service, the customer experience for female customers is considered to be a vital point for new car sales in the next 3-5 years, given the fast-growing number of female drivers in Saudi Arabia. Some sizable dealers have not yet built a dedicated female lounge with their 3S/2S facilities.

As much as EV adoption in the GCC region is behind other advanced regions like Europe, the US and China, from 2021, many major announcements were made, and a number of initiatives have taken place. Saudi Arabia, the UAE, Egypt and Morocco have established local EV manufacturing or assembling, with Al Damani DMV300 from M Glory in the UAE being the first EV model to be sold that is made in the GCC.

The VIO of EVs in the GCC region is expected to see double- or triple-digit growth every year from 2023 to 2030, with the UAE being the pioneer. The first EV-focused aftermarket workshop was established in the UAE. It offers EV servicing, warranty extension, and repairs.

A number of garages in the GCC have started the pipeline of building EV service

Most of the auto parts in the GCC are imported. Besides lubricants blending and a strong vehicle battery manufacturer, there is limited presence of other auto parts manufacturers in the GCC.

As a by-product of oil, lubricants are commonly blended in the region. Automotive lubricants from a number of reputable brands are produced, such as Gulf Oil lubricants, Q8 lubricants.

The partnership between GM and MEBCo to manufacture AcDelco automotive batteries

capabilities, including mechanic trainings, installing EV service infrastructures, etc.

Although the VIO of EV in the GCC is expected to surge from 2023, the demand for petrol car services is not expected to see significant influence until 2030. The mechanisms between EV service and petrol car service don’t share a lot of similarities; the infrastructure, skills of mechanics and devices are different. Hence, in the near future, it is likely there will be an emerging number of EV-focused garages.

It is less likely a small or mid-size garage will provide specialized services for both petrol cars and EVs within the same facility, except for services like car washes and tire changes.

With the automotive service business moving online, the transparency of car services has empowered customers with visibility on pricing, service quality and responsiveness. Some workshops encourage customers to leave feedback on Google Maps to build up public reviews.

Automotive service providers can also leverage data to learn customer behaviors and gain and retain customers. Several kinds of approaches have been seen in the GCC aftermarket: Hiring marketing companies to increase online exposure to gain customers, mostly using SEO solutions;

Partnering with automotive-focused online aggregators to do consumer surveys to understand consumer behaviors; Using data analytics within e-commerce platforms/ daily operations to understand customer retention and new sales; Purchasing automotive data from specialised companies.

One of the top battery retailers in the GCC collected data regarding the waiting time for a customer to change car batteries, which they used to redesign the customer journey and managed to cut the waiting time by 40%. Several automotive data companies in the region (such as AlgoDriven) provide realtimedata for automotive companies to understand current customer needs.

The essence of being customer-centric is about understanding customer behaviors, including driving behaviors and decisionmaking, to cater the operation to be more accessible and increase customer retention. Due to the shortage of containers in the disrupted global supply chain, freight has increased and caused higher landing costs for automotive parts. The price for both genuine and aftermarket parts has been inflated by the shipping costs; most have increased by 10% to 35% compared to pre-COVID in 2019. The price advantage of AM parts has increased with inflation.

demonstrated a best practice in automotive aftermarket manufacturing in the region. Since 1998, it has produced and sold 50 million batteries in the region.

Most of non-chemical auto parts manufacturing activities in the GCC region are in Saudi, which are also limited to a number of parts, such as bumpers (limited), gaskets, and brake pads for light vehicle, and a few specialized manufacturers for certain parts of heavy vehicles, such as axles, foundries. The rollout of Saudi-made cars and

UAE-made cars could potentially trigger the growth of auto parts manufacturing in the region. The first UAE car manufacturer M Glory announced the sales of its first EV model Al Damani DMV300 in late June. Saudi National Automotive Manufacturing Company (SNAM) and Lucid Motors are building their production facilities in the kingdom. SNAM is planning to produce 10,000 petrol cars, while Lucid is expected to sell the locally made EV in 2026. The growth of GCC car manufacturing would first create

market for OEM replacement parts, and potentially trigger the growth of aftermarket parts in the region. As part of the national vision of GCC countries to diversify the economies and reduce the dependence on oil, auto parts manufacturing could help enlarge the business portfolio, and also contribute to grow the car manufacturing ecosystem in the region. On the other hand, with the ongoing volatility of the global supply chain, supplying parts locally stands a greater advantage in lead times and delivery costs.

AUTO PARTS MANUFACTURING IN SAUDI ARABIA

In the aftermarket, the costs of parts have risen by 20%, on average, in the GCC. Service parts, such as lubricants, tires, batteries, brake pads, etc., have seen a 20% to 40% increase in retail price”

A REVOLUTION ADMIRAL LEADING

Admiral Mobility wants to bring 5,000 electric commercial vehicles to the Middle East

Admiral Mobility, a leading company in providing accessible eMobility and energy management solutions, says it wants to bring 5,000 electric commercial vehicles to the Middle East. The commitment comprises of 3,000 Electric Commercial Trucks, split between 6T and 8T, and a further 2000 Electric Farizon SuperVANs, explained the US firm in a statement. The order is the result of a strategic partnership between Admiral Mobility and China’s Geely Farizon Commercial Group, with the two firms believing there is growing demand for ecological transportation, “be it for highways, the city or backroads, to ensure a cleaner environment for us all”.

The UAE has been identified as their first priority because of its focus on achieving its Sustainable Development Goals (SDG’s) and providing access

to clean energy and sustainable economic growth.

Admiral Mobility has therefor committed to bringing 500 Commercial Vehicles to the UAE in 2023, which will further help build the ‘green transportation industry’, especially in the lead up to climate change conference, COP28 next year. Supporting governments, municipalities and ‘mega-projects’ in its quest to ‘decarbonise’ the transportation industry, Admiral Mobility said its focus will be to offer businesses distributing goods the opportunity to do this sustainably via the use of EV (electric vehicle) trucks, thus providing an environmentally-friendly and commercially viable business model.

Furthermore, Admiral Mobility said it will provide multiple ways to support public and private sector businesses, through assisting with charging network requirements, managing

after-sales services, as well as offering attractive leasing model arrangements to provide complete flexibility and peace of mind.

“With COP28 fast approaching and sustainability being high on everyone’s agendas, this partnership is an important step forward to build a robust, EV truck portfolio in the region,” said Frank Bernthaler, Chief Operating Officer, Admiral Mobility.

“As we transition towards more environmentallyfriendly energy and transportation solutions, we are proud to play a key role in building an infrastructure that empowers the government’s electrification strategy, and we are looking forward to supporting businesses as they move towards electric vehicles in the region.”

With a range of up to 400km, the zero emissions electric Farizon SuperVAN operates safely, taking less than two hours to fully charge.

NEXT ISSUE: ALL THE WINNERS FROM THE TRUCK AND FLEET AWARDS 2023, SPECIAL INTERVIEW WITH BEEAH AND MUCH MORE!

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