STAYING ON TRACK TELEMATICS FOR YOUR FLEET
006 JUNE 2014
MIDDLE EAST
SPORTS FANS SUVS TO BUY
TRUCK TRACKER FLEET ON BOARD
MONSTER TRUCK Tyre diameter of 182cm
It’s tIme to thInk tank Why bother going DUne bAShing When yoU cAn go StArWAlking?
A SUPPLEMENT OF CMME
02 CONTENTS
A supplement of Cmme
12
MIDDLE EAST
GrOUp CHAIrMAN ANd FOUNdEr DomiNic DE SoUSa GrOUp CEO NaDEEm HooD GrOUp COO GiNa o’HaRa pUBLISHING dIrECTOr RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5483 EdITOrIAL dIrECTOr ViJaYa cHERiaN vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDitORiAL
22
driVinG CHAnGe This month’s issue looks at the technological wonder that is telematics. We’ve reviewed the options that are out there and have picked two of the best examples of how using telematic systems can re-shape a fleet operation. Whether it’s
HIGH ROLLERS
02 / tAKinG A trip Lars-Erik Forsberg on Volvo’s regional journey. REVIEW
06 / tHinK...tAnK Truck & Fleet ME looks at LOGIS’ mighty new addition to the heavy car market. NETWORK
10 / mAn’s GreAt stArt MAN Trucks celebrates a great start to its year in the Middle East. TELEMATICS
12 / Get on BoArd Truck & Fleet ME talks to Fleetboard, the only OEM telematics player in the region. CASE STUDY
16 / pAeW As you Go How Oman’s electricity and water authority got its 400 vehicle fleet moving. SUV OVERVIEW
GrOUp EdITOr StEpHEN wHitE stephen.white@cpimediagroup.com +971 55 795 8740 INTErNATIONAL EdITOr StiaN oVERDaHL stian.overdahl@cpidubai.com ADVeRtiSinG COMMErCIAL dIrECTOr micHaEL StaNSFiELD michael.stansfield@cpimediagroup.com +971 4 375 5497 SALES EXECUTIVE BipiN SoNEJi bipin.soneji@cpidubai.com +971 4 433 2856
going into the minutest details like Mercedesowned Fleetboard or the simpler track and
DeSiGn
doubt that if you’re really interested in knowing
ArT dIrECTOr SimoN coBoN JUNIOr GrApHIC dESIGNEr pERciVaL maNaLaYSaY
the what, whys, how, and most frequently the
MARKetinG
trace systems that are in the market, there is no
wheres of your truck operation then you ought to be considering taking on the technology. The most crucial lesson we learned was the transformative effect it can have on the drivers within fleets. So often derided as under-skilled
MArKETING MANAGEr LiSa JUSticE lisa.justice@cpimediagroup.com +971 4 375 5498 MArKETING ASSISTANT BaRBaRa paNKaSZ barbara.pankasz@cpimediagroup.com +971 4 375 5499
and unaware of other road users, the data com-
CiRCULAtiOn & pRODUCtiOn
ing out of telematics systems demonstrate that
CIrCULATION ANd dISTrIBUTION MANAGEr RocHELLE aLmEiDa rochelle.almeida@cpimediagroup.com +971 4 368 1670
their mistakes can be minimised if they are properly trained. With vehicles in fleets often numbering in the hundreds, the biggest challenge when it comes to training is identifying the small changes that add up to costing millions of Riyals, Dirhams and Dollars. There is a clear mis-trust within the industry towards what Fleetboard’s Ross Davies describes as its soldiers on the ground. Yes, some are misusing their vehicles but there are many more that are genuinely interested in improving their
dATABASE ANd CIrCULATION MANAGEr RaJEESH m rajeesh.nair@cpimediagroup.com +971 4 440 9147 prOdUCTION MANAGEr JamES p tHaRiaN james.tharian@cpimediagroup.com +971 4 440 9146 DiGitAL dIGITAL SErVICES MANAGEr tRiStaN tRoY maaGma
pUbLiSheD by
skills-set and they should be given every chance to do so.
18 / tHe dl on suVs
Registered at impZ po Box 13700 Dubai, UaE
Truck & Fleet ME reviews the best SUVs available in the market.
tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com pRinteD by
ANALYSIS
printwell printing press LLc
22 / WHo loVe’s yA?
© copyright 2014 cpi. all rights reserved
What do buyers really want in the Middle and Near East?
Stephen White Group editor
while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
JUNE 2014 TRUCK&FLEET ME 1
HIGH ROLLERS
Feeling confident
Lars-Erik ForsbErgh says VoLVo is on its way to achiEVing its goaL as bEing numbEr onE in thE markEt
2 TRUCK&FLEET ME JUNE 2014
HIGH ROLLERS
i
t’s been a very good start to 2014 for Volvo and its trucks. January saw the Swedish manufacturer come out all guns blazing for the year when it unveiled its new FH, FM and FMX models during a spectacular “experiential” event held at Yas Marina Circuit. The roll-out of the brand’s on-going bestseller, the FH and the new models constitute Volvo’s biggest play to push upwards in the global market in a generation. As two of its main rivals MAN Trucks and fellow Swede Scania move ever closer under the Volkswagen umbrella (VW finally passed the 90% share ownership level needed in Sweden to force through its takeover of Scania in May), the message from Gothenburg has been strictly about its tractors. While others are talking share options and synergies, Volvo has been able to concentrate on the more grounded aims of “delivering the most advanced safety, efficient and performance
oriented features currently available in the global truck market”. Like its big range unveiling at Yas Island, Lars-Erik Forsbergh, president, Volvo Trucks Middle East, feels that the Swedish manufacturer is on track to placing itself in the lead of the market. “So long as the world is addicted to oil, the region will thrive,” he says. “Transport is a necessity across all sectors – even outside of construction, our trucks can be – and are – employed to undertake other logistical operations, such as transportation between factories, warehouses, retail units, end-users and on a global level, even to recycling plants. This is a period of huge growth, and we’re confident we will meet our objective of being regional leaders for the truck industry.” Volvo Trucks Middle East is looking forward to a year of growth with a projected 20% increase on deliveries across the Middle East in 2014. The news follows a successful Q1 during which a 13% to increase in forecasted deliveries was recorded across its 13 active Middle East markets. With the new range, Volvo Trucks has set a solid foundation for continued growth throughout 2014, with all three models set to make a significant contribution to the company’s overall performance in the Middle East this year. In particular, Volvo Trucks’ dedicated construction model the FMX, is tipped to help the brand dominate the construction segment with a robust exterior and revolutionary new design features built for operating in the toughest working conditions on earth. “The ongoing development of the Middle East truck market makes it a key focus for Volvo Trucks, and we intend to build on this great start to the year to reach our goals,” says Forsbergh. “The new FH, FM and FMX models will help us to do that as they offer the highest possible standards of reliability, handling, timesaving features, fuel-efficiency, safety and driver comfort to our Middle East customers. “This new range of trucks is the most advanced the world has seen, and has allowed
us to introduce an assortment of innovative features to the market, all with a clear purpose: to help improve truck productivity and durability, and consequently customer profitability, while making life safer and more enjoyable for the driver.” The new range features a totally redesigned cab, both inside and out, with improved seating position, increased usable window area and an innovative rear-view mirror design. Groundbreaking features include Volvo Dynamic Steering, which delivers exceptional handling very similar to a car – in all operating conditions, as well as intelligent I-Shift gearbox technology and the option of having the air suspension in addition to the traditional mechanical one. The Volvo FH has been Volvo Trucks’ flagship model for almost 20 years, accounting for more than 60% of total global sales, with the latest model already setting the world alight, having been named International Truck of the Year 2014. The new Volvo FM provides all-round capabilities and has been flagged the best truck in its class on the market. Taking reliability and productivity to the extreme, it is designed to provide the perfect platform for bodybuilders to customise it for any job. Rounding off the trio of newcomers, the even more robust Volvo FMX construction truck is loaded with new features that benefit haulers as well as drivers. Forsbergh can make bold projections amid massive government infrastructure spending in the Arabian Gulf and reconstruction efforts in war-shattered Iraq. Governments have been spending billions of dollars on building airports, roads, metros and other big civic engineering projects. That will all increase demand for building and transport equipment such as lorries. “The ongoing development of the Middle East lorry market makes it a key focus for Volvo Trucks, and we intend to build on this great start to the year to reach our goals,” says the president of Volvo Trucks for the Middle East. “The new FH, FM and FMX models will help us to do that, as they offer the highest possible standards of reliability, handling, time-saving features,
“This is a period of huge growTh, and we’re confidenT we will meeT our objecTive of being regional leaders” JUNE 2014 TRUCK&FLEET ME 3
HIGH ROLLERS
Christoffer Castor’s advertisement could be one of the best ever. You may not feel the same towards the 140.
The FH is Volvo’s most popular truck in the region and globally.
Best car advert ever? “Do you want to be perceived as rich and cuddly?” “Of course you do. Then buy my car with your dough. “This car is equipped with both an inside and
fuel efficiency, safety and driver comfort to our Middle East customers.” When presenting its results last month, Volvo said its first quarter operating profit increased by almost five-fold as the manufacturer scaled back production to meet a cost savings target for next year, according to Bloomberg News. Earnings before interest for its shareholders and taxes rose to 2.27 billion kronor from 482 million kronor a year earlier, Volvo said. Its chief executive, Olof Persson, has a goal of turning the company into the most profitable heavy lorry maker by reorganising the Volvo and Renault brands’ production in Europe, cutting administrative jobs and expanding overseas. The programme’s target is 4bn kronor in annual cost savings by the end of next year. A lorry production line and a component plant were closed during the quarter, Bloomberg also reported. Volvo Trucks has managed to chip away at the traditional dominant leaders in the market over the last decade and Forsbergh claims that it has now got the most recognisable badge on new trucks with buyers.
“Volvo is the leading brand for trucks across the region. We have a strong network of local partners, and we’re hoping to build and develop our relationships with service agents, financing bodies and trade facilitators – as a brand, we’re only as strong as our local dealers,” said Forsbergh. Excited for future development, Forsbergh readily admits that Volvo’s approach is a replication of what it has found works elsewhere. “We’re learning from the successes of our operations in Europe and applying them to here. In a way, we’re copy-pasting those strategies for the Middle East! The Asian and South American markets have also been a learning curve in Volvo’s history.” “Our workings in the Middle East are fairly distributed – Saudi Arabia is a huge market for us; however, KSA levies high import duties, a factor that motivated us to set-up a local assembly unit in the country almost 12 years ago. UAE is a booming market with the Expo 2020 due to take place soon, and markets such as Iraq and Qatar have massive potential for infrastructural growth.”
an outside. A real lady’s magnet. Buy my Volvo. Please.” Christoffer Castor of Malmö, Sweden and art executive turned to the internet to try and sell his 1968 Volvo 140, and filmed a video that in a matter of weeks has raked up millions of views on youtube.com. With the help from a cinematographer friend he has created a three minute opus that is part art installation, part advert, all celebration of a car that has both an “inside and an outside”. “I was going to put it on ‘Blocket’ a Swedish “Craigslist” arrange of site, though we wanted a ad to ‘stand out’ a little,” Castor told Yahoo. “The ads are always a same with lifeless content and pics that is not that honest. So we talked with a crony and co-worker during work, Christian Svanlund, who’s a good cinematographer about doing an kind of movie-trailer-ish ad for my car.” The pair enlisted the help of another friend Johan Kalrberg to do the voiceover and took two days to film the advert which now appears in both Swedish and English. The car was still up for sale as Truck and
“Ksa levies high import duties, a factor that motivated us to set-up local assemBly. saudi is a hugh marKet for us” 4 TRUCK&FLEET ME JUNE 2014
Fleet ME went to press and can be yours for $1,100. Not bad for a four decade old vehicle that has done 50km. Interested parties should visit: http:// www.youtube.com/watch?v=JJ0nkStZnWo for more information or just to be amazed at how good the advert is.
REVIEW
The BeasT On Wheels
T&F ME TEsT drivEs ThE nEwly-arrivEd 6x6 vEhiclE in ThE UaE – PETrovich aUTo’s ‘dob’ sTarwalkEr
G
aya Zhakenova detests driving through the desert in a 4x4. “This bumpiness makes me sick,” she tells Truck & Fleet ME, seated in a four-wheeldrive (4x4) in the dunes of Dubai’s Al Aweer suburb. “The Dob is so much better to use for these terrains; it’s like driving on a smoothly paved road.” Zhakenova is the business development manager of LOGIS Middle East, the company bringing the new range of Siberian firm Petrovich Auto’s six-wheel-drive (6x6) trucks to the region, one of which Truck & Fleet ME had the chance to
6 TRUCK&FLEET ME JUNE 2014
recently test out. The trucks have been registered with the Roads and Transport Authority (RTA) under the brand name ‘Dob’, Zhakenova says. ‘Dob’ is the Arabic word for ‘bear’, and she believes it appropriately relays the grand personality of the truck we’re about to drive. “The Dob (range of trucks) uses low pressure tyres, making it so much easier to ride in or drive in the dunes. We like to think of this as our desert bear,” she beams. Petrovich’s 6x6 model has been named ‘StarWalker’, and has been fitted with tubeless low pressure tyres, enabling its exceptional performance on the desert’s lofty dunes and
pebbled paths alike. (The truck runs on tyres having diameter of 132 cm, which can be inflated and deflated with the push of a button. This would help prevent the truck from being stuck in sand dunes and travel at a top speed of 70 km/h.) Three gear changes down, one fact is glaringly obvious: driving the 3.5 tonne, aluminumprotected StarWalker in the deep dunes of Al Aweer is as smooth as driving a Nissan Patrol on Dubai’s Sheikh Zayed Road might be. The StarWalker, according to Alexander Bakulin, deputy regional development director for LOGIS, can also “sail” in hydrated environments, owing mainly to its low pressure tyres. “Our
REVIEW
StarWalker floats because of (low) air in the tyres, and also due to the special waterproof tanks inside the body,” Bakulin tells T&FME. Cargo transportation on surface roads and other terrains, such as marshlands, mountains and even lakes can be undertaken with the truck, he adds. Dob trucks are multi utility vehicles which can be used by a variety of industry sectors in the UAE and other GCC countries. “The truck (StarWalker) has previously been used by the Russian Space Agency, ROSCOSMOS,” Bakulin says. “It can also be used for road surveys, by oil and gas companies; and for rescue operations by emergency services and police organisations.”
JUNE 2014 TRUCK&FLEET ME 7
REVIEW
LOGIS also plans to launch a smaller four-wheel-drive model known as Mr Moon which is also expected to be released in the UAE in the coming months. In a report in The National, Bakulin said that the vehicle will be Similar in shape to a Hummer (the market for which it is clearly aimed at), feature tyres the same size as the StarWalker, but with prices starting at much more desirable Dh400,000. “From order to delivery will take three months,” Bakulin, told the newspaper. “It will take about a month to build the
Possible modifications available to buyers include the installation of filters to prevent sand from entering the cabin and the replacement of heat radiators with an air-conditioning system. “The StarWalker can even be used by individuals,” Zhakenova proudly chimes in, “for hunting and expedition trips. We can even add gun racks or falcon cages for buyers looking to use the vehicle for hunting.” The ‘individual’, though, may have to pay a steep price to hunt for game in the StarWalker, which is currently available in the market at $190,560 (AED700,000). Only five trucks a month are produced in the manufacturer’s factory, which means the vehicles will be limited in numbers and rare to spot in the country. (Modifications will take 30 days to customise the truck according to customer’s needs, and the shipping will take 60 days. The company will be offering a limited number of vehicles in the UAE, as they manufacture no more than five units per month.) Zhakenova asserts the technologies used in creating the StarWalker provide benefits
that justify the vehicle’s current market value; she believes the vehicle will do extremely well in the region. “The (UAE) government will definitely benefit from the Dob’s technical specifications, so we are very keen on adding them to our list of buyers. “Saudi Arabia is also a potent market for us in the GCC; a lot of construction activity is undertaken there, and the StarWalker’s ability to drive on difficult surfaces makes it a handy vehicle to have on construction sites and to transport materials across the country,” she adds. Zhakenova is right about the StarWalker’s terrain-friendliness. Truck & Fleet ME found the low pressure tyres could well become the truck’s USP in a country that drives off-road for leisure. Combine that with the additional modifications that can be made to the trucks, and LOGIS may just have invented a powerful magnet to capture market share in the UAE’s transport sector. Driving out of the desert in a 4x4 was, most certainly now, a very boring ride indeed.
TECHNICAL SPECIFICATIONS – P. 354-71 BODY TYPE Wheel arrangement Seating capacity, pers. Net operating weight, KG Gross vehicle weight, KG Engine model Cylinders: quantity & placement Displacement, L Engine net power, kW (hp) Max torsion torque, N*m 5-range mechanical transmission Fuel type Tank fuel capacity, L Max speed, KM/H Fuel consumption, L/100KM Tyre type
8 TRUCK&FLEET ME JUNE 2014
BEARING FRAME WITH A CAB 6x6 8+1 2675 3490 Hyundai D4BH 4 in line 2,476 74 (100) 230 Hyundai Diesel 2 х 100 70 20 Low pressure tire 1300x700x21’’
vehicle to the customer’s requirements and then two months to ship to the UAE.” The company is initially focusing on the market in the UAE and Oman but could expand to the rest of the GCC depending on its success.
“THE DOB (RANGE OF TRuCkS) uSES LOW PRESSuRE TYRES, MAkING IT SO MuCH EASIER TO RIDE IN OR DRIvE IN THE DuNES. WE LIkE TO THINk OF THIS AS OuR DESERT BEAR.”
NETWORK
NETWORK 06 14
YOUR MONTHLY GUIDE TO THE MIDDLE EAST’S TRUCK AND FLEET OPERATOR NETWORK
40% sales growth for MaN MAN Middle East has registered a 40% sales increase in the first quarter of 2014 for the truck segment, proving the value of the new Middle East-specific tractor head launched last year at the Big 5 in Dubai. Revealing its numbers up to March, the company recorded its highest sales in the region since 2008. Major orders included a sale of 150 heavy MAN TGS WW 40.440 6×4 tractor heads that month to UAE-based construction company Saif Bin Darwish, an order alone worth $13.7 million. And with sales lagging globally for MAN, the group’s sale revenue declining by 13% in the first three months, the Middle East is playing an increasingly important role for the truck maker. Currently, the Middle East contributes 9.3% of the global sales volume of trucks (in units) compared to 6.1% in 2013. The region also contributes 7.8% of the global order intake volume of trucks (in units) compared to 6%
in 2013. These figures emphasize the growing significance of Middle East operations for the MAN Group, said David Van Graan, head of MAN Center Middle East and VP of sales and marketing. “We are very pleased to report a robust performance for MAN in the Middle East for Q1 2014. In March, we recorded the highest sales since 2008, which is a clear indicator for the recovery of major economies in the Gulf such as UAE, Qatar, Oman and Saudi Arabia. “Our team across the region has performed admirably and our customers have appreciated the innovative and diverse product range and services that MAN delivers We have consistently maintained a proactive environment of close cooperation and constant communication with our customers which have enabled us to be a true transportation partner in order to ensure their success.”
The Middle East contributes 7.8% of global orders
Contract includes fitting and balancing
AL DUbOwI GETS $2.2MN RTA cONTRAcT Al Dubowi Tyres Group was recently awarded a two-year contract to supply Korean Hankook tyres to the Dubai Taxi Corporation (DTC), a part of the UAE’s RTA. Under the terms of the contract, which is valued at $2.2 million in the first year, Al Dubowi will supply the DTC with Hankook tyres produced in South Korea, which are compatible with GCC specifications and standards, said Ahmed Khalwan Al Suaidi, CEO of DTC. “The contract provides for the fitting & balancing of tyres, in addition to carrying out wheel alignment free of charge in case two tyres or more are changed in the vehicle,” Al Suaidi explained. “The contract also provides for Al Dobowi to repair tyre punctures in DTC taxicabs free of charge, and appointing agents to provide this complimentary service at their facilities. “Al Dobowi will embark on this procedure at its facilities within the DTC premises at Muhaisnah 4, where 30 to 40 tyres will be changed per day,” he continued, adding that Al Dubowi will re-buy all used and replaced tyres of all sizes in DTC taxis.”
EMS CEO KEiTh KEith AUSTiN AuStin SAyS thinK ThiNK Of OF A rOAdShOw ROADShOW truCK TRUCK thE POWER pOwEr bACK TO tO thE brAndS. ThE thE TRUCKS truCKS ALSO AlSO hElp ThE ThE bRANDS. hELP 10 TRUCK&FLEET ME JUNE 2014
NETWORK
EiChEr SEllS 66-SEAtEr buSES tO Afl India’s commercial vehicles manufacturer Eicher has scored one of its biggest deals in the Gulf with the sales of 66 buses to Al-Futtaim Logistics. Eicher, which is distributed by Al-Futtaim owned subsidiary Pacific Machinery first revealed the bus at the end of last year. One of Eicher’s first foray’s into the left hand drive segment for its buses will be added to Al-Futtaim Logistic’s 220-vehicle fleet.
intEgrAtEd trAnSpOrt fACility SEt up At dubAi wtC
MAttAr Al tAyEr SAyS invEStMEnt KEy Investment in transportation has been the
A new shuttle transit option has been made available at the Dubai World Trade Centre (DWTC), facilitating ease of access for passengers who wish to use cab services from the venue. A new taxi station has been set up across the Trade Centre Hotel Apartment buildings in the locality. RTA officials supervised and guided the
shuttle route, which commenced at the Ibis Hotel, and ended at the taxi station. However, no official comment has been made by the RTA regarding this integrated transit system yet. Taxi drivers said that they have been informed to follow this arrangement for roughly the duration of this week; but, one taxi driver commented this could become a permanent set up given the frequency and footfall of events at the WTC. The Al Ghubaiba locality in Dubai is typically considered Dubai’s first integrated transport locality, due to the presence of a taxi station, bus station, water metro and abra services and a metro station in the area.
key driver behind the growth of cities like Dubai, the chairman of the board and the executive director of the Road and Transport Authority has said. Speaking at the 2014 edition of the PMI Global Conference at Dubai World Trade Centre, Mattar Al Tayer said that as a multicultural city, Dubai would always be highly attractive for tourism and conferences. As such, investment in transport infrastructure would be vital for a continued upward trajectory, he added. “More than $80 billion has been invested in the city’s infrastructure, of which, $20 billion alone is dedicated for transport,” he said. “Dubai Metro is the backbone of our transport
Dubai Canal ConstruCtion won’t Cause Disruption
In light of the recently-awarded contract to develop Phase II of the Dubai Water Canal, the RTA has announced it will undertake special measures to ensure construction work on-site does not hinder residents and drivers in the vicinity of the project. The $104.5 million-worth contract to build bridges at Jumeirah and Al Wasl Roads was
awarded to China State Construction Engineering Corporation Middle East (CSCECME) by the RTA, with the project’s completion target set for the fourth quarter of 2016. RTA chairman and executive director of the board, HE Mattar Al Tayer said the roads authority will ensure traffic diversions are planned in a way that causes minimal disruption to residents in the localities. “The contractor’s work area will be fully separated by a high barrier to keep the disturbance to road users and residents of the neighbourhood to the minimum,” Al Tayer said. “The number of lanes during the diversion stage will be equal to the existing number of lanes in order to make sure that such diversions will not have a negative impact on the existing traffic volumes, and avoid congestion.”
K AS A StAnd On whEElS, whiCh givES tO ExtEnd thE EvEnt CAlEndAr
network, due to the ease of access it provides along with its advanced linkage systems that allow the RTA to efficiently address emergency situations,” Al Tayer added. “We are hoping Etihad Rail will be completed by 2018, as it would allow interemirate cooperation in the UAE. Existing transport systems will be expanded to facilitate access for the Expo visitors, which estimates have suggested will arrive from a record 200 or more countries.” Al Tayer pointed out that the Dubai Expo 2020 would have a major impact on the city’s population estimates and increased trading opportunities. He added that a RTA team would be set up by 2917 to undertake crowd management, with the Expo in mind. “Mobility is a key theme of the Expo 2020,” Al Tayer continued, adding that the RTA hoped to aid Dubai’s government in the accomplishment of its Expo theme targets. Green infrastructure will be an important part of the Expo preparations,” he insisted. Al Tayer also stated that sustainability would be core to the RTA’s operations in preparation for the world event.
TELEMATICS
It’s all about the driver Ross Davies of fleetboaRD says that fleet opeRatoRs shoulD leave nothing to chance when it comes to theiR DRiveRs
12 TRUCK&FLEET ME JUNE 2014
Roads TELEMATICS
I
f you’re looking for the whole package when it comes to telematics then there is still only one OEM player in the Gulf, Daimler and Mercedes’ Fleetboard. Now in the market for six years, the system has racked up millions of kilometres of experience on the road. The key to Fleetboard is how it measures and the performance of vehicle and driver on every journey with its grading system. The grade awarded reflects driver behaviour in key areas such as heavy braking, harsh acceleration, anticipating the road ahead, gear changing, etc, and can also identify use of cruise control and excessive idling. Regional manager Ross Davies argues that raising driver standards is key to making improving service intervals and protecting fleet profits. “Drivers here drive in an aggressive manner because they are motivated to get as many jobs done as possible,” says Davies. “If company A is trying to motivate drivers by saying if you do more trips I will pay you more, then of course the driver will be driving as quickly as possible. At the end of the day, he’s there to get money in his pocket. If they are motivated by his Fleetboard score – and the company amend its incentives to suit – at the end of the year the company will see more profit because they will have a lower cost per trip.” If you’re looking to adopt a telematics system, you may be confused by the differences and the true benefits certain systems provide. If you’re running a large fleet a simple track and trace set-up may simply not provide you with enough information to keep things smoothly ticking over. Knowing where a driver is, is
not the same as knowing how he is driving. (Fleetboard’s SIM allows free-roaming if you’re worried that your drivers may be shifting fuel to sell across the Saudi/UAE border!) “Yes we can show you where the drivers are through track and trace. But if you wanted to purchase a track and trace system you wouldn’t purchase fleetboard. The main benefit comes when you look at optimising your fleet,” says Davies. “Drivers here need training. The main initiative should be to take these people, train them, develop and see how good they can be. At the end of the day they are your soldiers on the ground.” Fleetboard which is standard on new Mercedes trucks in Europe currently offers a four month trial which installs the system on up to four trucks at no cost. Davies says that the product, which he admits is available at premium relative to the simpler box-in-your-truck systems also in the market, is trialed to promote its use but also to demonstrate its potency. “In Qatar now when somebody wants a truck, they’re asking for Fleetboard,” he explains. “Installing the hardware – as long as the truck is available – takes three hours. (In terms of taking it out of the operation for that period) they’re motivated to do it because they can see the benefit up front. He continues: “The only reason a customer will talk to any company about telematics is because fundamentally they know they have an issue or they want to perform at a higher level. Downtime in the region is a problem but it is not felt at to the level it would be in Europe. It’s not monitored in the same way and they don’t have the key understanding that if my truck doesn’t run then I am losing X, Y, and Z.” Drivers are only told they are being monitored in the second month of the trial. As Davies explains this means the drivers are then evaluated in their “natural environment”. “We want to see how he drives on a daily basis without him in having in mind that he is being monitored. Also if they knew about it, they may change their behavior for a week but then they’ll fall back into their bad habits,” he says. “After one month we can look at the performance and see these are the findings. The performance analysis looks at drive and truck analysis. The truck performance is used because if we’re using more than one driver on one truck we would only have an average of the truck. “We can see his brake behavior; how he moves his pedals from accelerator or brake, whether his engine brake – a standard feature on
JUNE 2014 TRUCK&FLEET ME 13
TELEMATICS
Different markets, Different tastes Ross Davies says the cost of fuel is a major reason for differences in the way fleets are run in the region. “Its different from market to market. If you look at a market like Saudi, for
the truck – and also what his preventative style is. Is he looking ahead of himself and predicting he would have to slow down?” At the end of the month the driver receives his score on a scale of 1-10. With his driving style analysed, training can then be done to work on his weaknesses. “With a click of a button I can see that he is spending 40% of the time in the red line, and he drives 10,000km per month and he uses 60l per 100km,” he says. “Everything is linked. Performance analysis is like putting together the pieces of a puzzle. The second month can be used to practice what he has learned. The idea being in the first month the driver score is maybe 6.5/10 – where the average is 8/10. By then end of the month we will be able to see that he is at a higher level. By doing the driver training you can see that you get an immediate impact on the way he operates the truck.” Davies warns against fleet owners assuming that they will see an immediate RoI, even with a system that goes as deep as Fleetboard, the benefits may take time to be realised on the bottom line: “It’s not a short-term fix. People
think that if I invest in a telematics system then I’ll get an immediate return. This will not always be the case. It is a combination of technology and a process which is continuously ongoing. You can always improve. You can always find areas of your business that can be more efficient or revenues that can be gained. Return on investment can be four months or a year.” Engine diagnostics through uploads from the heart of the engine are used to pinpoint when servicing is required, he adds. Davies says the system can reduce maintenance costs by as much as 20%: “The truck will send a message back, saying guys I need an engine service in 2,000km. The key things behind that is service plan that shows you exactly what needs to be done. You’re saving on wear and tear, engine service, gearbox overhauls, engine malfunctions.” With its OEM rivals yet to fully enter the market with their own systems. Fleetboard is in a unique position to benefit from a resurgent market: “We’ve been the pioneers, the ones that put our flag in the ground to convince customers this is what you need. It’s only now that the fruits of our labour is starting to be seen.”
“Drivers here Drive in an aggressive manner because they are motivateD to get as many jobs Done as possible” 14 TRUCK&FLEET ME JUNE 2014
example, where fuel is very cheap. Labour is readily available, the market is booming there is huge projects is booming. Every customer needs trucks as quickly as possible to keep the momentum and due to the fact that fuel is so cheap, such systems are leaning towards just having a track and trace systems. Owners or operators just want to locate where the drivers are, make sure they’re doing the job properly, they’re not sleeping or doing side jobs on a part time basis. Saudi is a few years behind the UAE or Qatar. “We’ve see that the diesel cost has increased rapidly. So for any customer in the uae working on a project,diesel cost has become a fundamental factor of his tender. When I first was filling my car up ten years ago I was doing it for 70AEDnow its 120AED. “These are the two markets that we would indentify as definitely having a need for a telematics system. They’re not just looking for a track and trace system. They want to look at service and maintenance data and also driver performance. “In the UAE we have customers that are running five trucks and customers that are running 150 trucks. We’re talking big fleets. Some customers would like to reduce their fuel consumption in the UAE, where in Saudi it is all about service and maintenance.”
Roads
Open track T&F ME looks aT how TElEMaTics providEr MiX TElEMaTics is hElping oMan To sEcurE iTs drinkablE waTEr supply
O
man’s Public Authority for Electricity and Water (PAEW) plays a vital role in securing the population’s water and power needs. The Omani government has pledged to connect 90% of the Sultanate to the water network by 2035 and the PAEW is currently tasked with delivering 650,000 cubic metres of potable water to more than 1.5 million people. Ensuring that the flow does not stop or the lights go out is a fleet of 400 trucks deployed by the authority to get its team to where and when they are needed most. Despite the fleet’s crucial role in the country, the authority has had to respond to reports of unsafe and poor driver performance, accidents, high maintenance costs and excessive fuel consumption due to personal vehicle use. Studying the data (and presumably speeding fine slips) it was clear driver safety and fuel consumption were being particularly impacted
16 TRUCK&FLEET ME JUNE 2014
due to over-speeding. PAEW enlisted the help of fleet management and vehicle tracking specialist FMSi to identify how it could tackle its mounting costs. FMSi is arguably one of the most experienced solution providers in the region when it comes to the telematics. It has assisted many organisations projects in the Middle East and Africa in identifying specific needs and delivering the right solution for their fleet to better manage and improve their road safety standards. After analysing PAEW’s challenge, FMSi recommended a series of measures to the authority including MiX Telematics’ FM Tracer. The Software-as-a-Service company’s FM Tracer combines an on-board computer and its vehicle tracking technology provides a costeffective, feature-rich tracking and tracing solution. The solution’s tracking functionality is supported by fast and accurate GPS positioning, which is used in conjunction with GSM and GPRS. The FM Tracer offers tools such as trip
replays, finding the nearest vehicle to a certain location and reports on movement history and vehicle utilisation. The on-board computer, or FM Communicator, was installed in each of the truck tractors. Placing MiX Telematics’ systems presented PAEW with the opportunity to manage its fleet and communicate with its drivers. Beginning in the middle of last year, a phased installation is currenly underway. 119 vehicles are planned to be kitted out in 2014, as the installation programme reaches the more remote locations of Oman. Implementing in multiple phases has limited the downtime of the fleet and ensures that sufficient vehicles remained available for day-to-day operations. To support the fleet PAEW has a dedicated fleet control room manned by four staff. A FMSi project manager has been appointed as the InVehicle Monitoring System (IVMS) coordinator for the duration of the contract as well as a team of mostly Omani FMSi-qualified technicians. This FMSi project manager also assists PAEW
Roads
in optimising its use of the system, including the generation of reports and the facilitation of driver feedback sessions. According to Saif Al-Mawali, director general of administration at PAEW, the benefits were felt by PAEW management almost immediately. The PAEW management team were particularly impressed by the effect the system had on driver attitudes and behaviour, which resulted in improved driving practice. “Having the tools to effectively manage our vehicles and drivers enabled us to achieve a sharp reduction in major violations such as over-speeding, unfastened seat belts and harsh braking,” Al-Mawali said. Using the In-Vehicle Monitoring System data, generated in conjunction with feedback and coaching of drivers, the solution has contributed to fewer crashes and a reduction in maintenance costs. One of the key sets of data have been the driver behaviour reports through FM-Web, such as ‘RAG’ reports (referring
to ‘red’, ‘amber’, ‘green’ scoring) as well as historical trip reports to assess routes and the number of kilometres driven. Drivers were, perhaps understandably, suspicious of the system at first, but MiX Telematics says that this soon passed: “At first, yes, but they soon recognised that the solution supported their own safety benefits, which led to their acceptance of the system.” Monitoring driver behavior has led to a dramatic decrease in over-speeding, which in turn has resulted in safer driving and reduced fuel consumption. Based on a 5% sample, drawn at a specific date, PAEW is seeing a 10-20% cost saving on fuel and maintenance. “We’re delighted to work alongside PAEW, which serves a population of over 1.5 million people and transports more than 650,000 cubic metres of water per day on average. For them to achieve their aim of connecting 90% of the Omani population to the water network by 2035, it’s essential that they make use of tools
that optimise their safety and efficiency,” said Alan Hall, managing director of MiX Telematics (Middle East and Australasia). “PAEW had a critical need to control violations within their vehicle fleet. The MiX solution is cost-effective and includes track-and-trace functionality as well as historical trip reporting. It enables PAEW to communicate with drivers and better assign jobs.” “In addition to lowering accident rates and lessening fuel consumption, PAEW is saving on fleet maintenance costs through having more direct control over their fleet,” added Dr Waseem Atiah, COO, FMSi. The five-year-long fleet management contract with PAEW is set finish in 2018. Hall is confident that the authority will continue to feel the benefit of the system leading up to 2035. “We look forward to working with the customer to sustain the improvement achieved to date, and to aid them in deriving even further value from the solution,” concluded Hall.
JUNE 2014 TRUCK&FLEET ME 17
REVIEW
Driving the mid-range Truck & FleeT presenTs 8 Top mid-sized suVs
While there seems to be an entrenched view that ‘bigger is better’ when it comes to SUVs in the Middle East, there’s not always an advantage in buying the very biggest vehicle on the market. Presented here is a range of the top selling mid-sized SUVs in the Middle East. Most drivers find that a large sized SUV fulfils the same function, in terms of tranporting people and luggage, and even going off-road for dune bashing as the very large SUVs, but at a decent reduction in price. And when used as a company vehicle, it’s certainly true that the price savings will be signficant across a wider fleet. Truck & Fleet ME presents eight of the best mid-sized SUVs.
ToyoTa Prado The Prado is a mainstay of the SUV market in the Middle East, and was facelifted in 2013 as the 2014 model. Cosmetic features of the update were improvements to the seating, a new larger navigational LCD display, and PES (Poly Ellipsoid System) headlamps, which are projector type low beam headlamps to improve visibility at night. At the core of the vehicle is its variable valve timing (VVT) engine, which can be optioned either as the frugal 2.7L version, or in the gruntier 4.0L capacity. VVT tech means better valve timing based on driving
conditions, giving increased torque and improving fuel economy. The engine is mated with a 5 speed automatic transmission. On-board safety features are displayed through the information display giving the driver a good overview, and include showing speed and following distance when using Dynamic Radar Cruise Control; a digital animation showing vehicle tilt .when driving in the off-road mode; as well as showing centre and rear differential lock status. Three AC zones operate in the cab, and the vehicle can seat five or seven.
18 TRUCK&FLEET ME JUNE 2014
REVIEW
NissaN PathfiNder Nissan’s Pathfinder was released as an all new model in 2013, and has a number of innovative feature which one would expect of a newly launched vehicle. One of the most pleasing aspects of the Pathfinder (and a hallmark of many of the vehicle’s in Nissan’s passenger range) is its CVT (continuously variable transmission), which uses a single metal belt that runs around a pair of variable diameter pulleys, instead of conventional gears. This creatives a different driving sensation, with the ‘gear ratio’ responding to the accelleration demands of the driver, rather than the accelleration fitting to the different gears. It’s also more fuel efficient. The gear ratios on the Xtronic are from 2.413 to
0.383 in forward drive, and the engine is a 3.5 litre petrol engine. Front and rear independent suspension is standard. Safety features include a reversing camera and four cameras in total, which can produce a ‘Bird’s eye view’ on the navigational display. For control, Nissan’s stability control programme Vehicle Dynamic Control (VDC) is designed to monitors the driver’s steering and braking, to help maintain the vehicle’s steered path when it seems to be skidding or sliding, by reducing engine output and applying brake pressure to specific wheels. A tyre pressure monitoring system (TPMS) with individual tyre pressure display is a nifty inbuilt feature, and will notify with an illumunated icon on the dash when a tyre has low pressure.
ford exPeditioN The Ford Expedition can seat 8, and while that may seem like a lot of people in one vehicle, the Expedition has a wide range of features designed to keep everyone comfortable. This includes best-in-class third-row leg room and heated room, for those seated in the rear-most row of seats; an air-conditioning system which saw extensive field testing in the Middle East prior to market launch, and has 13 individual in-cabin vents; and for entertainment dual-headrest DVD players are optionable. Looking to the engineering, the Expedition is notable for having an independent rear suspension system, which creates an smooth and comfortable ride by providing excellent control of body roll.
The model is available in four different variants, but all come equipped with Ford’s 5.4L, V8 engine, and a 6-speed automatic transmission. It’s a lot of power, but drivers should feel in control with traction control, 4-wheel power disc brakes with Anti-lock Brake System (ABS) (standard), or Ford’s Control Trac 4-WheelDrive (4WD) system (optional). The vehicle is built with six airbags, including a safety canopy system to protect the occupants in all three rows of seats. Its fuel tank can hold up to 126.8 liters of fuel, which based on its US highway fuel economy of 11.76 litres/100km, gives you enough juice to drive from Abu Dhabi to Riyadh – around 1,000km – on a single tank.
JUNE 2014 TRUCK&FLEET ME 19
REVIEW
CheVroleT Trailblazer
Mazda CX-5 The Mazda CX-5 is a popular vehicle among fleet buyers, noted for affordability and low running costs. Seating a maximum of five, with no third row of seats (look to the larger CX-9 for that), the SUV has a clean interior, with high visibility instrumentation, and a 3.5 inch digital display. Recently launched as an all new model, the CX-5 is built with a 2.5 litre petrol engine, with max power of 185hp (138kw), fitted to a 6-speed gear box, either automatic or manual. For the auto, the lockup range has
been extended to improve fuel economy, and an updated control unit guarantees smooth shifting. The chassis has been engineered to give a sporty feel, while retaining a smooth drive. A new control system for the power steer means better feedback to the driver, for better handling on the open road and better maneuvering while parking. The brake system has ventilated discs at the front, and solid discs at the rear, and has been designed to give a linear relationship between pedal force and deceleration.
Chevrolet has a busy line up of SUVs and crossovers, with the Trailblazer solidly placed in the middle, seating seven and with a 3.6 litre engine. Built large, robust and dependable, it boasts a swag of features and options including cruise control, power seating controls for the driver seat, a 7 inch LCD navigational screen and split air conditioning zone for front and back. Projector headlights provide a farther and better view, without blinding other drivers. Safety features are numerous, and for steep terrain, drivers have the option
of activating hill descent control (HDC): as the vehicle proceeds down a steep slope, the HDC will have the engine and the brake working in unison automatically in order to limit the speed of the vehicle to the appropriate level thus making the descent much safer. Conversely, there’s also hill start assist to make starting on hills easier. Chevrolet describes the Trailblazer’s engine as a ‘mountain of muscle’, and the V6 is combined with a 6-speed automatic transmission. It’s power can be fed into off-road performance.
Volkswagen Touareg Volkswagen began building its Touareg back in 2002, and named it after the nomadic Berber peoples who live in the Sahara in North Africa. The vehicle is built over Volkswagen Group’s PL71 vehicle platform, shared with the Audi Q7 and the Porsche Cayenne, though in all respects the models are signficantly different (the Touareg seats five, while the Q7 seats seven). Volkswagen has packed it full of the technology and features that you might expect on a premium European vehicle. Its pioneering ‘Dynamic Light Assist’ controls lighting in high beam, using a camera to monitor the lights of vehicles driving ahead and of oncoming traffic, and automatically adjusts
20 TRUCK&FLEET ME JUNE 2014
the angle of the beam to focus it on the areas around oncoming cars, so that their drivers aren’t blinded. Volkswagen’s electronic stability programme (ESP) prevents loss of control on corners, while the curtain airbag system for front and rear passengers includes side airbags and belt tensioners at front. Engine-wise, it can be specced out with a V6 3.6 litre, generating 206kW, or a V8 4.2 litre, 265kW. The transmission is an 8-speed auto, which is generally two extra gears than is standard for many of its competitors, so expect faster acceleration and better fuel efficiency. Combined fuel consumption is 10.2l/100km for the smaller engine, rising to 12.1l for the larger engine.
REVIEW
Hyundai VeRacRuz Hyundai’s Veracruz is the largest SUV in its range, but slots into the midsize segment, seating up to seven passengers including driver. Hyundai has built its name on building quality passenger vehicles, as it has steadily grown in popularity worldwide, and the Veracruz is bundled with no end of smart features. These include a stainless steel scuff guard on the front door sills, powered bootopener, a cool box in the front for keeping your water bottle cold, a 2nd row middle armrest, and a large luggage mat and net to keep objects in the boot safely in position. Safety features include ESP and ABS, and active front headrests: in the event of a rear impact, the front headrests instantaneously move upwards
to help protect against whiplash. And optionable extras include different levels of sound-system sophistication, and a power driver’s seat thatis 10-way. The Veracruz is available with either a petrol (3.8l) or diesel (3.0l) engine, giving buyers a good choice of accelleration versus torque. Sensors of the 4WD system automatically select the right balance power to the wheels through a multi-plate clutch system, while the driver can select 4WD Lock whenever extra traction is needed.
Renault Koleos Launched as a facelifted model in 2011, the new Koleos is designed with a bolder Renault-style front grille, an electric panoramic sunroof, chrome side protectors, and bi-xenon headlights. The vehicle is available with a Bosedesigned sound system, featuring seven speakers, subwoofer and digital amplifier. Built with a 2.5 litre petrol engine, combined fuel efficiency is available in either a fixed 4x2 or 4x4 model variant. It is available with a 6-speed continuously variable transmission (CVT), with a 2.5 litre petrol engine. For extra control on hills there is hill start assist (HSA) and descent. HSA is activated for two seconds when on slopes, allowing the driver time to manoeuvre, while hill descent mode will hold
the vehicle’s speed downhill at around 7km/h, allowing the driver to fully concentrate on steering. A blind spot warning system detects the presence of other vehicles in the visibility blind areas, alerting the driver with a flashing light near the right or left wing mirror. The navigation and media display panel is entirely touch-screen. The Renault brand is a popular marque in the GCC, and owners benefit from an extensive service network of dealerships across the different territories.
(An ISO 9001:2008 Certified Company)
MULTI BRAND BODY AND MECHANICAL REPAIR CENTRE
Hydrant Dispencer Refurbishment
Sulfur Tanker
talk to us ...
We Specialized in :
Accident repairs with Hydraulic Chassis Repair system for Heavy Trucks. Modification / Retrofitments - Fuel Tankers and Trucks. Fitment - Roll Over protection bars for SUV. Preventive maintenance and Diagnostic jobs for Heavy Trucks - All Brands. Upgradation / Maintenance - Hydrant Fuel Dispensers / Refuelers. Refurbishment - Fuel / Sulphur / Cryogenic Tankers. Fabrication requirments for Outside Broadcast Van (OB Van). Refurbishment - Oil Well Invention machines.
Waste Compactor
Location : Dubai Investment Park 2, Jebel Ali Contact : Vidhu P. Babu Service Manager (Body Shop)
Mobile: Tel: Fax: Email:
050 456 0161 04 8855169 Ext. 107 04 3389559 / 8858750 vidhu.babu@ase.ae
www.alshirawi.com/ent We undertake on site inspection Inhouse “Recovery - Vehicle facility” available.
Batch Mixer
RTA Approved Truck Chassis Repair Centre Rollover Protection
Hydraulic Chassis Repair
JUNE 2014 TRUCK&FLEET ME 21
SPECIAL REPORT
For the love of driving A new survey by nielsen surprises which country’s cAr buyers Are the hungriest for vehicles
S
eventy-five percent of Middle East online consumers plan to buy a new or used car in the next two years, according to a new study by Nielsen, a leading global provider of information and insights into what consumers watch and buy. The Nielsen Global Survey of Automotive Demand was conducted between August 14 and September 6, 2013, and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users and is weighted to be representative of Internet consumers.
22 TRUCK&FLEET ME JUNE 2014
According to the survey, auto demand in the MENAP region will be strongest in Pakistan (78%), followed by UAE (75%), Egypt (74%) and Saudi Arabia (72%). “Linking global automotive demand with consumer sentiments is vital to developing marketing strategies that connect the right consumers with the right automotive brands,” said Akash Pal, executive director - Consumer Insights, Nielsen Africa & Middle East. “The MENAP region represent a large area of growth opportunity for the industry, but capturing this opportunity hinges on marketers successfully identifying, understanding and effectively connecting with buyers’ needs and desires.” The Nielsen Global Survey of Automotive
Demand polled more than 30,000 Internet respondents in 60 countries to identify where automotive demand is greatest and to reveal the emotional as well as the financial motives that are most influential in driving new and used car purchase intent. In UAE, 47% of respondents say they will buy a new car, while 28 percent plan to buy used. Similar ratios are found in Saudi Arabia (49% new versus 23% used). At 40%, slightly more Pakistani respondents plan to buy a new car in the next two years than plan to buy a used car, at 38%. In Egypt, 40% of respondents say they will buy a new car whilst only 25% say they will buy a used car. According to Nielsen’s survey, 82% of
SPECIAL REPORT
Pakistani respondents in the market to buy a new car say that aside from financial reasons, an emotional love of driving is the biggest trigger of automotive sales. Owning a car to fulfil utilitarian needs (81%) or reflect a symbol of status (67%) are other motivators that will spur future automotive demand in Pakistan. “Marketers need to abandon some preconceived notions about the factors that influence a new versus used car buyer or first-
time buyer versus an existing owner,” said Pal. “Getting to the heart of what drives purchase decisions allows auto marketers to fine-tune their marketing strategies to address the unique needs of the buyers in their markets.” “Automotive makers are well aware of the power of emotional connections for car buyers, but the key is making sure these messages are clear and resonate through their campaigns to the right audience,” said Pal. “If auto marketers know that consumers are driven by status, then sales efforts centered on the luxury car market should be a priority focus. Similarly, with utility-minded, finance-driven or driver-enthusiast consumers, a keen focus on their desires will ensure that marketing strategies are proactive and aligned with their wants.” 47% of UAE respondents say they will buy a new car in the next two years, compared with 28% who plan to buy used cars. In Egypt, 49 percent of respondents say they will buy a new car, while 25% plan to buy used. Similar ratios are found in Saudi Arabia (49% new vs. 23% used). According to Nielsen’s survey, 82 percent of UAE respondents in the market to buy a new car say that aside from financial reasons, an emotional love of driving is the biggest trigger of automotive sales. Owning a car to fulfill utilitarian needs (78%) or to reflect a symbol of status (71%) are other motivators that will spur future automotive demand in UAE. 30 percent of UAE respondents have more than one car at their disposal. According to
Nielsen’s study, 20% of UAE online consumers drive 2 cars, 8% three cars and 8 percent 4 cars. Only 14% of the UAE online consumers don’t have a car in their household. According to Nielsen’s global online survey of automotive purchase intent, 65% of respondents across 60 countries plan to buy a new or used car in the next two years. New car purchase intent is strongest in Asia-Pacific, where 65% of respondents say they will buy new, compared with only 7% that plan to buy used. In the region, this new car demand will be driven by consumers in India (77%), China (76%), Thailand (68%) and Indonesia (63%), where the expectation to buy is highest. While new car purchase intent also dominates in Latin America, Middle East/Africa and North America, the ratios of new to used car purchase intent in these regions are smaller. Meanwhile, in Europe, more respondents plan to buy a used (28%) rather than a new car (22%) in the next two years. The Nielsen survey has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
29
71
79
% of women plan to buy a car in the middle east
% of men plan to buy a car in the Middle East
% of global buyers already own a car
JUNE 2014 TRUCK&FLEET ME 23
ALL wRAppEd Up
St ick it to th em: labelling ca n no longer be consider ed a fad in the re gion .
LAbeLLing up your vehicLe is set to stick around
A
ccording to International Expo Consults (IEC), the car wrapping industry in the UAE is set to scale new heights owing to the accelerated growth witnessed by the UAE’s auto-
mobile sector. Sign and Graphic (SGI) Dubai 2015 will have a special arena for exhibitors to showcase their car wrapping skills live during the event. For the past 17 years, SGI Dubai has been helping sign makers, architects, media agencies, print and production manufacturers, real estate developers, brand and image consultants converge under one roof. “Car enthusiasts are definitely upbeat as the mood is all set to witness state-of-the-art car wrapping demonstrations at SGI Dubai. Originally created as a medium for mobile advertising, car wrapping has turned into a fashion statement and rapidly gaining popularity,” said Abdul Rahman Falaknaz, Chairman of IEC. “The car wrapping industry has witnessed rapid growth in the Middle East in recent years and this market is very much in the growth phase and has a tremendous poten-
24 TRUCK&FLEET ME JUNE 2014
tial. This platform definitely enables a vast market outreach apart from being an effective means of advertisement. The scope of the industry combined with the aesthetic appeal has been the main contributor for the latest upsurge in the demand for car wraps.” The next SGI Dubai 2015 takes place next January and is set to feature 400 exhibitors from across 30 countries and 12,000 visitors. “Making the right impression involves very effective advertising and car wraps are definitely the ultimate method to spread your idea or business message. Car wraps for sales and delivery vehicles are a potent marketing and branding tool. A car which is wrapped and well-designed is more likely to garner more attention than a plain coloured one on the road. Attention grabbing, brightly enamelled vehicles wraps definitely gives you the distinct edge and makes your vehicle stand out from other cars. Aesthetically appealing car wraps engage people’s attention. The advantages of car wrapping are multi-fold which includes reaching a wider audience, non-aggressive advertisement, mobile advertisement, cost effectiveness, local
advertisement besides protection of your vehicle,” said Sharif Rahman, CEO, IEC. “Vehicle wrapping has spread like wild-fire and is one of the latest forms of outdoor advertising. Businesses that engage are getting a thrust in the right direction in the UAE. A plethora of existing automotive aftermarket and signage businesses are adding this service to their existing chain of offerings to harp on the extra revenues. The car wrapping industry is in the nascent stage but has tremendous growth potential observed from its rapid growth in the UAE in recent years as the numbers and statistics paint a clear bright picture,” said Rahman. Market research on car wrapping market conby Frost & Sullivan recently revealed the vehicle wrap market will grow by 10% year-on-year. “The car wrapping industry is a fast blooming multimillion industry which has taken a surge in the US and other developed countries. This phenomenon is picking up speed and has become sort of a rage in the Middle East as well. This industry has catapulted into the next level taking giant strides due to the growth in advertising spends in the consumer product market.”