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021 OCTOBER 2015
back to school tata reveals new elanza
port of call
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sedans take the stage a look at the best-sellers
gary lemke discusses kHaliFa POrT’s OFFeriNg FOr THe auTOmOTiVe iNdusTry
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A supplement of Cmme
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GroUP CHAirMAn AnD FoUnDEr Dominic DE SouSa GroUP CEo naDEEm HooD PUBLiSHinG DirECTor RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5483 EDiToriAL DirECTor ViJaYa cHERian vijaya.cherian@cpimediagroup.com +971 4 375 5472
22
KhAlifA port geArs up for growth
eDiTOriaL
As the automotive sector in the GCC continues
SUB EDiTor aELRED DoYLE
ConSULTAnT EDiTor Stian oVERDaHL stian.overdahl@cpidubai.com +49 176 271 203 87 DEPUTY EDiTor JERuSHa SEquEiRa jerusha.sequeira@cpimediagroup.com +971 4 375 5477
to see growth in both the passenger and
NETWORK
04 / omAn-sAuDi roAD linK UAE’s Ministry of Energy announces that fuel prices will be deregulated starting August 1.
commercial vehicles segments, there’s no doubt
aDVerTisiNG
that this creates an opportunity for logistics and
CoMMErCiAL DirECTor micHaEL StanSFiELD michael.stansfield@cpimediagroup.com +971 4 375 5497
supply chain services to support the industry. Ports, in particular, play a crucial
SALES EXECUTiVE BiPin SonEJi bipin.soneji@cpidubai.com +971 4 433 2856
role in contributing to this growth, facilitating the movement of automotive cargo from ship to showroom.
DesiGN
This month, we examine how Abu
COvER sTORy
06 / port of CAll How Abu Dhabi’s Khalifa Port is working to attract car importers and dealerships.
ArT DirECTor Simon coBon
Dhabi’s Khalifa Port aims to become a hub
JUnior GrAPHiC DESiGnEr PERciVaL manaLaYSaY
for roll-on/roll-off (RORO) cargo and is working with automobile importers and
MarKeTiNG
dealers based in the capital and across the Emirates. Gary Lemke, executive vice
FEaTURE
12 / bACK to sChool
president – Ports at Abu Dhabi Ports, explains
MArKETinG MAnAGEr LiSa JuSticE lisa.justice@cpimediagroup.com +971 4 375 5498
the company’s vision for supporting the
CirCuLaTiON & PrODuCTiON
Tata Motors has introduced the new Elanza to tap into the GCC school bus segment.
automotive industry and contributing to
DiSTriBUTion MAnAGEr SuniL KumaR sunil.kumar@cpimediagroup.com +971 4 375 5476
shOW pREviEW
myself as the new deputy editor of Truck &
the UAE capital’s diversification on p.6. On that note, allow me to introduce
18 / pmv live returns PMV Live is back in Dubai next month, colocated with The Big 5 show in november.
Fleet ME. Stian Overdahl, the former acting editor, certainly leaves some big shoes to fill, but I’m confident that with the support of this magazine’s readership and the wider
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20 / seDAns in stYle Truck & Fleet ME examines some of the bestselling sedans in the GCC.
industry, Truck & Fleet ME will continue to deliver quality content on issues that matter.
ProDUCTion MAnAGEr ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL WEB DEVELoPEr moHammaD awaiS umaiR SHamim
PubLisheD by
I’m always eager to receive feedback and hear from you regarding topics you’d like to see covered in the magazine, so feel free to
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Registered at imPZ Po Box 13700 Dubai, uaE tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com
Central Motors and Equipment and Michelin Tyres open truck service centre in Mussafah.
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32/ sCAling new heights The nissan Patrol scoops its second Guinness World record in Jordan.
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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.
octoBER 2015 TRUCK&FLEET ME 1
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1
EDITOR'S CHOICE
READERS' COMMENTS
Crane collapse: Saudi Binladin Group barred from new projects
Construction giant’s executives not allowed to travel after Mecca tragedy in which at least 107 died
2
Crane was reportedly fixed to the ground with four 1000-tonne foundations
3
PHOTO GALLERIES
Mecca crane ‘could not withstand intense winds’
Construction underway at Dubai’s Marina Gate A visit to the under-construction mixed-use The Residences at Marina Gate development.
Mecca crane collapse: Saudi king promises
public investigation King Salman visits the Grand Mosque
4
“The Mecca crane disaster was truly tragic and my thoughts go out to those involved. Those responsible – if indeed someone is at fault – should be brought to justice. And the construction industry across the Gulf certainly needs to take note of the safety issues raised. But Saudi Arabia’s quick action to investigate the incident, and disclose the results publicly, is worthy of praise – as is the speedy announcement of compensation to the families of the many victims” Craig Smith-Jones, comment to story ‘Mecca crane collapse: Saudi king promises public investigation’
Dubai’s $272m Mall of the Emirates expansion completes
The UAE-based retail giant
READER POLL
Majid Al Futtaim is set to open
Can Dubai sustain another ‘megaproject’ like Meydan One?
the mall’s 36,000sqm retail
22% 19%
extension on September 28
5
Cityscape: $5.4bn Sharjah Waterfront
City officially launched Sharjah Oasis Real Estate Development has signed
VIDEO
Nissan Patrol breaks world record in Jordan The Nissan Patrol has clinched a Guinness World Record for
agreements for two hotels to be
the fastest production car to ascend a 100m sand dune.
part of the upcoming project
See videos at: meconstructionnews.com/videos
Yes: Demand is already there in the market
No: There is insufficient demand
25% 33% Yes: Build it and they will come
No: The focus should be on ‘affordable’ projects
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 2 TRUCK&FLEET ME OCTOBER 2015
NETWORK
NETWORK 10 15
YOUR MONTHLY GUIDE TO THE MIDDLE EAST’S trucK and fleet operator networK
ISUzU SIGNS JORDANIAN DEALER
Al Rosan Contracting bagged the contract to build the road in 2010.
Oman and Saudi tO Open firSt rOad link The first road linking Oman and Saudi Arabia via the Empty Quarter is set to open next month, Gulf News has reported. Saudi-based Al Rosan Contracting bagged the contract to build the 680km road in 2010. Oman has spent $517 million building its 160km stretch over two years, while Saudi Arabia has spent around $266 million on its 566km stretch over four years. In Oman, the road starts from the Tanam area of Ibri Province and passes through oilfields until it reaches the Oman-Saudi border in the Empty Quarter. In Saudi Arabia, a 319km stretch will link the Haradh-Batha road with the Al Shiba oilfield, and 247km of
road will link Al Shiba to the Omani border. Although Saudi Arabia shares a 600km border with Oman, there was previously no land link between the two. The road distance between the countries will be reduced by over 500km, from a current distance of nearly 2,000km via the UAE. A project of significant engineering complexity, the new road was built though the moving sands of the Empty Quarter – the largest contiguous sand desert in the world, covering 640,000sqm. The project involved building sand bridges between high rising dunes, a process that used 130 million cubic metres of sand, the equivalent of more than 50 Pyramids of Giza.
Qudra Automotive Trading Company has been appointed the exclusive dealer of Isuzu vehicles in Jordan. The company was launched following the signing of a dealership agreement with Isuzu Japan to become the authorised dealer and distributor of Isuzu vehicles in Jordan. The firm unveiled its new Isuzu showroom on Mecca Street, Amman during a press conference on August 31. After-sales support for customers will be provided through a new service centre in Bayader. The launch event showcased Isuzu’s latest line of D-Max and N-Series trucks. “We are proud to celebrate the beginning of Qudra Automotive Trading Company’s journey, which is being launched through our latest investments in the automotive industry – specifically, in the lightweight truck and heavy commercial vehicle segments,” said Mohammad Alayyan, chief executive of Qudra Automotive Trading Company.
dubai-based tyre distributor zafco has launched brand zeetex. the site will soon be launched in multip 4 TRUCK&FLEET ME
OCTOBER 2015
NETWORK
Qatar recalls camry models Qatar’s Ministry of Economy and Commerce
The new market will contain a total of 88 truck showrooms.
(MEC) has announced the recall of Toyota Camry 2011-2014 models. The recall is due to defects in the software of the Engine Control System, which will need to be upgraded. The recall will be done in collaboration with Abdullah Abdulghani & Bros Co, Toyota’s Qatari dealer.
QaTaR’s NBK TO sUppLy TRUCKs TO aBaza Qatar’s Nasser Bin Khaled (NBK) Automobiles, the dealer for Mercedes-Benz vehicles in the country, has signed with a Qatari contractor for the supply of 40 Actros trucks. NBK Automobiles will supply ABAZA Group for Trading & Contracting with the trucks, which will be deployed in construction and trading activities. “We are pleased to partner with ABAZA Group for Trading & Contracting, and contribute to their development plans for Qatar,” said Khalid Shaaban, general manager at NBK Automobiles. “We are confident the Actros vehicles will deliver as per expectations. These reliable and
efficient trucks have been designed to set new benchmarks for long-distance transport, with new productivity, comfort and safety features that guarantee a cost-effective experience.”
new dubai trucK marKet to open after eid The new Dubai truck market, built at a cost of AED73 million (nearly $20 million), will open after Eid Al Adha this year, Dubai Municipality has announced. Located in Al Ruwayyah 3, the 421,000sqm market will provide new and used trucks for sale, in addition to spare parts. A committee has been formed to invest and lease Dubai Municipality properties in preparation for the opening of the market, said Khalifa bin Hareb, director of the assets management department of the Dubai Municipality, quoted in Gulf News. The new truck market will contain a total of 88 truck showrooms, each 2,000sqm in size. A further 60 showrooms, each 1,000sqm in area, will sell truck
COpART OpENS NEw MIDDLE EAST HQ IN DUbAI
The new office will be located in Dubai Industrial City.
Online vehicle auction company Copart, Inc. has announced the opening of its new headquarters for the Middle East.
The office is on the same site as Copart’s 26-acre auction facility, which can store over 2,500 vehicles. Located in the Dubai Auto Zone of Dubai Industrial City, the facility houses the dayto-day operations and customer service areas for Copart’s auction business, as well as the management offices for the region. “With the addition of this prime location in Dubai, we continue to develop our footprint in the Middle East,” said Vinnie Mitz, Copart’s president. Copart began operating in the Middle East out of Dubai three years ago, with its first auction held in the emirate in August 2012.
d a redesigned website for its tyre ple languages for different regions.
spare parts. It will also offer government department services specific to the sector. In addition, the truck market will save time and effort for traders and consumers by providing a range of services such as vehicle testing, financing services, insurance and auctions in one location. In May last year, the General Projects department at Dubai Municipality announced that most of the work (92%) on the Dubai Truck Market was complete, with work progressing smoothly, state news agency WAM reported. When open, the new market will regulate the trade of trucks and spare parts of second-hand heavy vehicles. It will also facilitate the arrival of traders from abroad to encourage the export of trucks and heavy equipment. “The Dubai Truck Market will help with improving the aesthetics of the city by curbing the sale of trucks and spare parts on the roadside,” said Abdullah Rafia, assistant director-general of the civic body, quoted in WAM.
OCTOBER 2015 TRUCK&FLEET ME 5
Cover SToRy CovER Story
Port of Call Gary Lemke, executive vice president – ports at abu dhabi ports, expLains the vaLue proposition of khaLifa port for vehicLe importers and deaLerships
Funding your Fleet
6 TRUCK&FLEET ME octoBER 2015
Cover SToRy CovER Story
octoBER 2015 TRUCK&FLEET ME 7
Cover Story
I
n April this year, Abu Dhabi Ports announced that it planned to move all of the UAE capital’s roll-on/roll-off (RORO) cargo operations to Khalifa Port. RORO cargo refers to wheeled cargo that is driven on and off ships, as opposed to being lifted using cranes or put in containers. Heavy vehicles like tractors and bulldozers, as well as private and commercial automobiles like cars, trucks and buses, are typically transported as RORO cargo. Abu Dhabi is seeing a surge in RORO cargo volume, recording 18.8% year-on-year growth in 2014, with an all-time high of 106,071 units handled. As RORO cargo continues to grow, Abu Dhabi Ports is confident that Khalifa Port will play an increasingly important role as a RORO hub for the UAE and wider Middle East, Africa and the Indian subcontinent. Situated in Taweelah, the port is strategically located about halfway between Abu Dhabi and Dubai, offering automobile dealers transport connectivity as well as land to establish distribution centres and storage facilities in the adjoining Khalifa Industrial Zone (Kizad). While Zayed Port, which previously handled Abu Dhabi’s RORO cargo, provided capacity for 132,000 vehicle units per year, Khalifa Port’s currently annual capacity is nearly three times as much, at 360,000 units annually. Plans are afoot to upgrade this figure to half a million per year in the future. Truck & Fleet ME sat down with Gary Lemke, executive vice president – Ports at Abu Dhabi Ports, to learn more about its vision for developing its new RORO hub, and how it is working with automotive industry stakeholders to boost growth in the sector. “We've had great successes,” he says,
Gary Lemke, executive vice president – Ports at Abu Dhabi Ports.
commenting on the port’s journey since it began operations in 2012. “We had 41% year-on-year growth so far in the container business, and just over 11% growth until July in the RORO business.” The process of transferring RORO operations from Zayed Port to Khalifa Port was far smoother than anticipated, as it was carried out in phases. Half of the business was moved in the first quarter of the year, with the remaining 50% transferred in the second. New terminal operating systems have also been introduced at Khalifa Port, he adds. “When we took on the concession of the general cargo and RORO operations here last year, we inherited some legacy
“traditionally, roro cargo has a quite high damage element to it. We have to make sure that it's saFe and secure and that We’re Protecting the customers’ ProPerty, both externally and internally” 8 TRUCK&FLEET ME octoBER 2015
systems that were very antiquated, to put it kindly. Now we've introduced a new system, which allows us to introduce technology such as barcode readers, making our RORO handling much more efficient.”
Working With imPorters Khalifa Port is well on its way to achieving its goal of becoming a RORO hub, handling record volumes of nearly 14,000 vehicles in the month of August this year, Lemke says. Previously, the average volume in a month at Zayed Port was between nine and ten thousand. The port also offers four deep sea berths which can handle up to five RORO vessels. Ever since RORO traffic was redirected to the port, Abu Dhabi Ports has seen growing interest from carriers and automotive dealers keen on leveraging its enhanced capabilities. The fact that the port is located alongside Kizad increases its appeal to local car importers, and many have made significant investments in facilities there, Lemke notes. “We have a number of car importers that have committed to land in Kizad. We have a lot of relationships with not only the shipping lines but also with the importers, because only half of our business is handling the cargo of the ship. The other half is delivering it to the trucks of the importers that are coming in, so we have a very wide range of customers and
Cover CovER Story SToRy
stakeholders in here as Abu Dhabi Ports.” Importers can now bring in their cargo to Khalifa Port and have it reach their facilities, complete pre-delivery inspections on it and send it on its way to a showroom within 24 hours. Currently, most of the importers bringing in cargo through the port cater to the Abu Dhabi market, though there has been interest from companies with a more nationwide focus in recent months, notes Lemke. “We’re starting to see in the last year and a half a lot of interest from pan-Emirates companies and even from the Northern Emirates.
We're only an hour away from the border of Dubai, and also have road access to Saudi Arabia. It’s very easy to get to Saudi from here.” Moreover, as investments from car dealers and importers in Kizad grow, there is also an increased interest from support industries like spare parts distribution, which require logistics firms, creating further business opportunities, he points out. Kizad offers its own value proposition to car importers, Lemke says. “We have very low utilities costs, wide open land, a lot of infrastructure services and the plots are ready. So a number of companies have committed to Kizad.”
Abu Dhabi Ports is also investing in equipment to enhance its capacity to handle RORO cargo. “We've spent about $1.5 million on trucks for our cargo operations, and about half of that is on the heavy-duty trucks that we're putting into our RORO terminal.” Moreover, the port operator is buying equipment to better handle nonrubber tyre vehicles, which have the potential to damage the terminal paving if moved too far from the ship. There are other challenges and safety hazards associated with RORO cargo, Lemke explains. “Traditionally, RORO cargo has a quite high damage element to it. We
“We can Provide suitable caPacity For maybe uP to a million vehicles iF We decide to develoP that caPacity in khaliFa Port, Which means that We’re Future-ProoF” 10 TRUCK&FLEET ME octoBER 2015
Cover Story
khaliFa Port vs Jebel ali: is there a comPetition? One of the main factors contributing to Khalifa Port’s success is its strategic location between the thriving economies of Abu Dhabi and Dubai. Despite its proximity to Dubai, however, are importers seeing the appeal of bringing RORO cargo to Khalifa Port, with well-established Jebel Ali Port less than an hour away? How does Khalifa Port see itself in relation to its neighbour? “Each of us has a role to play. Each of us has our own market,” Lemke says. “Domestic business is set up such that you have specific dealers for Abu Dhabi, specific dealers for Dubai and the other emirates also, and then you have some pan-emirates dealers. We obviously are the main gateway for the Abu Dhabi dealers, and we hope that we have an offering that attracts the pan-Emirates dealers here as well.” Even though there is rising interest in Khalifa Port’s services, there is always going to be a balance between it and Jebel Ali. “We believe we have a very compelling proposition with the amount of land we have available and the amount of land required for RORO storage for the importers. We have the ability in Kizad to offer quite sizable plots that allow a large amount of vehicle storage for the importers here, whether they're Abu Dhabi Currently, most of the importers bringing in cargo to Khalifa Port cater to the Abu Dhabi market.
have to make sure that it’s safe and secure and that we're protecting the customers’ property, both externally and internally.” Additionally, staff typically have to work in confined spaces in RORO vessels, presenting challenges in terms of well-being as well as making sure the cargo isn’t damaged. “When you think about moving heavy cargo within confined spaces of ships, and the type of equipment and safety gear that you need to move it, we have to make sure that the safety equipment doesn’t damage the vehicles." It’s also important to ensure that the staff don’t accidentally damage the vehicles, on the exterior or interior. “We handle some very high-value vehicles. It’s no good having people in oily overalls sitting in a Porsche or Bentley.” Although there are several challenges on a day-to-day basis, the port is well-equipped to handle them, he says. This is primarily done through staff training and safety briefings at the start of each RORO shift or operation. The permanent workforce on-site at the
RORO terminal is fairly small, with a significant portion of labour subcontracted, Lemke says. “We have contracts for subcontract labour for drivers, which we can expand and contract as we need. Sometimes we have five vessels, sometimes we have none, so subcontract labour gives us the flexibility to be able to bring in the number of drivers that we need.” “We have a very small team running the RORO terminal, but that’s part of what this is about. It’s about being efficient. If we’re efficient, it makes it financially efficient for our customers as well.” Strict safety rules apply to both contractors and subcontractors, and contractors have to undergo a mandatory safety induction. “We’ve also introduced a training regime for our subcontractors, for all of their staff, where they have to have been trained by approved training providers if they’re going to work with us.”
economic diversiFication As oil prices continue to stay low, the need
dealerships or pan-emirates dealerships.”
for economic diversification becomes even more prevalent in oil-dependent economies. Abu Dhabi Ports has a significant role to play in the emirate’s diversification, with a target to contribute 15% of its non-oil and gas GDP. Khalifa Port is set to play a key role in this growth by supporting local industry, Lemke says. “It’s a great location, and it has a huge potential for expansion. We can provide suitable capacity for maybe up to a million vehicles if we decide to develop that capacity in Khalifa Port, which means that we're future-proof.” “And that’s important, because the local industry and international organisations don't want to be with us for a year and then they get told that we don't have the capacity to be able to deal with their growth. They need to be able to do it all in one place. So I think it’s the futureproof solutions that really have given us a competitive edge in Khalifa Port.”
octoBER 2015 TRUCK&FLEET ME 11
Feature FEaTURE
11.3 million: Number of school students in the GCC by 2020 12 TRUCK&FLEET ME OCTOBER 2015
Feature FEaTURE
Back to sChooL
TaTa MoTors is TappiNG iNTo The GCC sChool bus seGMeNT wiTh a braNd New offeriNG dediCaTed To The seCTor. Jerusha sequeira learNs More abouT The Newly lauNChed elaNza OCTOBER 2015 TRUCK&FLEET ME 13
Feature
t
he school transport segment in the GCC is certainly a promising one, if the number of bus manufacturers vying for market share in it is any indication. With the number of students in the region expected to reach 11.3 million by 2020, there’s no doubt that school transport operators stand to see significant growth, creating a valuable opportunity for commercial vehicle manufacturers to supply growing school fleets. India’s Tata Motors has long been a mainstay of the labour transport segment in the GCC, where its buses are used daily to ferry thousands of workers to and from construction sites. The brand sells about 4,000-5,000 vehicles, predominantly buses, in the region each year. Tata Motors has also been dominant in the school bus space, particularly within the Emirates, where it caters largely to schools serving the South Asian diaspora. As school transport regulations gradually become more stringent in the region, however, the manufacturer saw the need for a more premium offering for the sector, with enhanced safety and comfort features. This led to the launch of new offering for the school bus segment, specifically the Tata Elanza. While the aggregates of the bus chassis have remained the same, the Elanza has undergone a comprehensive makeover from its predecessors and boasts a brand new exterior and interior. The bus was designed taking into account inputs from customers in the region, says Asif Shamim, regional manager - Middle East at Tata Motors. “Both private as well as government operators have played a role in helping us shape this product.” Although the new Elanza will be gradually rolled out in the GCC, the manufacturer decided to first introduce it into the UAE market, he adds. “We wanted to bring the bus to the UAE [first] because we felt that the UAE is probably the most sophisticated market as far as regulations and such criteria are concerned for school buses. Therefore, if you can make a product that works here, you can probably have it working in other places as well.” As promising as it may look as far as the numbers are concerned, the school bus sector comes with its fair share of challenges, particularly in terms of regulation, which largely varies across countries. Within the UAE alone, each Emirate has different specifications in
14 TRUCK&FLEET ME OCTOBER 2015
Tata Motors has already received an order from STS for 30 units of the new Elanza.
spotlIght on safety School bus safety has always
with GPS tracking, video
in the market, and all the
been a matter of high priority
surveillance and a ‘sleeping
installations in the buses
in the UAE, particularly after
child check’ button, says
like GPS, video surveillance
recent tragic incidents involving
Colonel (Retd) M. L. Augustine,
systems is done by our own
young children – such as
managing director of STS. The
technical company, STS Safety
the death of a four-year-old
button is located at the back of
Device Equipment Trading.”
schoolgirl in Abu Dhabi, who
the bus and has to be turned off
was left locked in her bus.
by the driver before switching
about 70,000 students, buys
STS considers safety
STS, which caters to
the engine off, forcing him to
buses of different seating
paramount on-board its fleet
walk the length of the bus and
capacities from a wide range
of nearly 2,000 buses, and
ensure no children have fallen
of brands, Augustine says.
the transport provider has
asleep inside the vehicle.
It currently owns about 200
introduced several safety
Safety features and
Tata buses, and has recently
features on its vehicles, in
specifications therefore play
placed an order for 30 units
addition to those mandated
a crucial role in the vehicles
of the new Elanza, having
by the government.
STS buys, Augustine says.
had a positive experience
“We go for the safest buses
with the brand so far.
All buses come equipped
terms of seating capacity, layout, aisle space and so on, Tata Motors executives point out. Tata, however, is optimistic about the prospects of the new Elanza, and has already received a major order from the UAE-based School Transport Services (STS), the largest privately owned school bus operator in the UAE.
Improvements A key reason behind the brand’s confidence in the new bus is the overhaul in the exterior and interior, which will ensure that both driver and
passengers are in for a more comfortable ride. A new design language has been incorporated on the bus, with elements borrowed from the styling of Tata’s Prima truck range. On the front, the bus has a more curved windshield compared to its predecessors, and features Prima headlamps with projector lamps. The front flap opening of the bus has been modified, to ease access to the engine and make maintenance easier. In addition, the entrance of the Elanza has been modified for easier ingress, and steps have
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The entrance of the bus has been modified for easier ingress.
been broadened to enable students to climb into the bus more easily. Inside the bus, the cushioning of the seats has been improved for greater comfort, and a skid-resistant vinyl floor has been added. According to Tata Motors, the Elanza also features better cladding and more soundproofing to reduce noise levels inside the bus. The Elanza meets all Dubai RTA school bus norms and comes with a whole host of
Passenger comfort gets a boost with better cushioning on the seats.
safety and comfort features and is backed by the trusted and proven reliability of the Tata driveline.
strategy The new bus will first be revealed to UAE school customers at a launch event this month. While Tata Motors does plan to eventually target other GCC markets as well, it will focus on the Emirates for now.
“school buses are not retaIl products. you don’t keep them In the showroom for sale off the shelf. they are ordered dependIng on the school's requIrements.” 16 TRUCK&FLEET ME OCTOBER 2015
As the bus is largely modified and tailored to suit each school customer’s requirements, its final price will depend on the specifications required by the customer, he says. “School buses are not retail products. You don’t keep them in the showroom for sale off the shelf. They are ordered depending on the school's requirements. The price will really depend on what you want from the product.” Customers have several options for financing, which is readily available, as we work with a lot of Commercial Vehicle Financiers. Looking ahead, Tata Motors is keen on dominating the school bus segment, once the new Elanza hits the roads despite the stiff competition from other Indian and Chinese competitors, he concludes. “We want to be the leading brand in the school transport space, with the Elanza. If we want to be the leading brand, then we need to be competitive. And that’s something that we’re committed to being.”
MAN Truck & Bus looks back to 100 years of construction truck manufacturing. Being active in the Middle East since more than 50 years, MAN trucks are perfectly fit for the tough conditions. Reliable performance, robustness and a dense service network is part of our strength to keep our customers in action. Visit us at the Big 5 exhibition to see for yourself at Stand No. OS70 (DWTC Plaza). Driven to make efficiency ever more efficient and clients ever more satisfied, we’ve been thinking ahead of the curve for 100 years. It’s what we’ve always done, and what we’ll always do. www.man-middleeast.com
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With the outlook for the GCC’s ConstruCtion seCtor stronGer than ever, this year’s PMv live in Dubai Will onCe More shoWCase the best of What the inDustry has to offer
D
espite the uncertainty lingering over the GCC given the fall in oil prices, the construction sector appears to be as healthy as ever. The value of contract awards in the region this year could reach over $194 billion, according to a report by Ventures Onsite. With the positive outlook for the construction industry, The Big 5 International Building and
18 TRUCK&FLEET ME OCTOBER 2015
Construction Show promises to be bigger than ever when it returns to Dubai in November this year. “The Big 5 in Dubai is a main focus for suppliers to the region from across the world. Major infrastructure projects in Saudi Arabia and UAE have and will continue to drive diversification, but what we’ve also seen is large-scale investment being sustained across Oman, Kuwait, Qatar and Bahrain,” says Andy White, vice president of dmg events
Middle East, organisers of The Big 5. Last year, the show attracted over 80,000 participants from 147 countries. With increased demand this year, the event will fill new hall space at the Dubai World Trade Centre, with a section called The Big 5 Focus. This year’s Big 5 will once more be colocated with Middle East Concrete 2015 and PMV Live 2015, the show dedicated to heavy vehicles and construction equipment.
Preview Show PREviEw
M AN Truck & Bus will be ce lebrat ing a ce producing co nt ur y of mmercial vehi cles at PM V Live 20 15.
“With 36,000 international visitors attending Middle East Concrete and PMV Live last year, we’re excited by the chance to work with exhibitors in showcasing a spectacular range of vehicles, heavy machinery and concrete,” says Nathan Waugh, dmg events’ portfolio director for the two shows. “The global construction equipment market is forecast to reach $241 billion by 2020, and growth in the Middle East is a major part of this figure.” The outlook for the GCC’s construction sector remains positive, despite lower oil revenues as governments continue to spend heavily on infrastructure projects, White points out. “Kuwait has more than trebled its contract awards this
year, the Saudi government has made it clear that it will continue to invest, and the UAE has revealed more spectacular projects. The GCC Secretariat General has also announced that the GCC Rail network is meeting construction deadlines and is on track to meet its 2018 deadline.” This large-scale investment in infrastructure projects will continue to attract major players from the construction industry, Waugh notes. As construction activity is not expected to slow down anytime soon, construction machinery and heavy vehicle manufacturers naturally stand to benefit from the boom, and this will be reflected in PMV Live 2015.
One of the commercial vehicle manufacturers making an appearance at this year’s show is MAN Truck & Bus. The German brand will be marking a century producing trucks and buses. “We will celebrate our anniversary of 100 years of truck and bus production in 2015 together with our customers at the Big 5 exhibition,” says Sabine Geiter, head of marketing and communications for MAN Truck & Bus Middle East and Africa. “As PMV Live is one of the most important exhibitions in the region, we have chosen it to showcase a piece of MAN history in the Middle East.” Visitors to the MAN stand will be able to look at one of MAN’s vintage trucks on display, and learn about the milestones achieved by the manufacturer producing commercial vehicles over the past century, Geiter notes. “We will also display a new truck model for the region as a pre-launch for the near future, as well as products of our current construction vehicle range. In addition, we will show our services and fleet solutions such as MAN Genuine Parts, MAN Telematics, MAN ProfiDrive and MAN TopUsed.” Another manufacturer exhibiting at the show this year will be Ford Trucks. The American brand’s UAE dealer, Al Tayer Motors, launched Ford Trucks at The Big 5 show in 2014. The company exhibited a range of Ford heavy commercial vehicles, including an 1843 T tractor, a 3535D 6x4 chassis tipper and a 4135M 8x4 chassis mixer. Held alongside PMV Live, Middle East Concrete will provide a platform for the region’s concrete industry, and will showcase many live demonstrations this year. “One of the things that makes Middle East Concrete and PMV Live so popular is the fact that they are considered to be the must-attend platform for major players representing the entire industry,” Waugh says. The Big 5 Dubai 2015, together with Middle East Concrete 2015 and PMV Live 2015, will run from November 23-26 at the Dubai World Trade Centre.
“We WiLL aLso disPLay a neW truck ModeL for the region as a Pre-Launch for the near future, as WeLL as Products of our current construction VehicLe range” OCTOBER 2015 TRUCK&FLEET ME 19
Feature
SedanS in Style
From Families to Fleets, sedans have an incredibly wide customer base, Finding use in rental companies, taxi Firms and more. Truck & FleeT Me examines some oF the top-selling models in the gcc
The Hyundai Sonata made its debut in korea in 1985.
HYuNDAI SONATA In May this year, Hyundai Motor Company marked the 30th anniversary of the Sonata mid-sized sedan, one of its best-selling models worldwide and in the Middle East. The Hundai Sonata made its debut in 1985 in Korea, and has sold 7.3 million units worldwide since its introduction. It was launched in the Middle East and Africa in 1988. By April 2015, it had sold 314,181 units in the region. Currently in its seventh generation, the all-new 2015 Sonata is
the second Hyundai model to feature the brand’s Fluidic Sculpture 2.0 design concept, offering technologies such as Blind Spot Detection and the Smart Truck function, which allows the driver to open the truck remotely. Comfort features on the sedan include a panoramic sun roof, manual rear-side window curtain, an integrated driving mode system (normal, sports, eco) and an Integrated Memory System (IMS), allowing users to switch between two profiles at the touch
20 TRUCK&FLEET ME OCTOBER 2015
of a button. The system adjusts automatically to the driver’s seat preference and corresponding exterior mirror positions. Safety features on the Sonata include vehicle stability management, hill assist control and electric parking brake. In addition, 51% of the new Sonata’s steel is advanced high strength steel (AHSS), increasing stiffness and protecting passengers with improved body structure rigidity. The vehicle is offered with a
choice of two engines in the Middle East – a 2.0L multi-port injection (MPI) and a 2.4L MPI, with a sixspeed automatic gearbox. The 2.0L engine provides maximum power of 156hp at 6,200rpm and maximum torque of 196Nm at 4,000rpm. The 2.4L engine offers 176hp at 6,000rpm and torque of 229Nm at 4,000rpm.
314,181 units sold
in middle east and africa
Feature
NISSAN SuNNY The 2015 Nissan Sunny builds on the vehicle’s legacy as one of the most popular options in its segment in the GCC. The 2015 Sunny comes with a refreshed front, rear and interior design that includes a bigger front grille, boomerang-shaped headlamps and chrome detailing around the car. It also features upgraded interiors complete with a redesigned centre console and a new steering wheel with integrated audio and telephone controls. A new feature is the Nissan Connect system, which offers Facebook and Google connectivity, as well as the ability to link a smartphone to the vehicle’s audio system via the Nissan Connect apps. “The Middle East is a key
market for Nissan, and the Nissan Sunny is one of our top-selling models in the region, contributing to around 15% of our total sales. We expect this model to make a notable impact on our growth, doubling its sales volumes by FY16,” says Samir Cherfan, managing director at Nissan Middle East. The 2015 Sunny comes with a 1.5L four-cylinder engine, offering maximum power of 99hp at 6,000rpm and torque of 134Nm at 4,000rpm. It is available in four spec variants: S, SV, SV Comfort Package and SL. Prices start at $12,380 in the GCC.
$12,380
starting price in gcc
The Mazda 3 comes with a 1.6l inline four-cylinder engine.
MAZDA 3 The all-new 2015 Mazda3 was unveiled in the UAE last year by Galadari Automobiles, the Japanese brand’s dealer in the Emirates. The launch coincided with the tenth anniversary of the first Mazda3 rolling off the production line in Japan. The 2015 Mazda3 is available in 1.6L and 2.0L engines, with six different models ranging up
to 155hp. The 1.6L inline fourcylinder engine offers maximum power of 104hp at 6,000rpm and torque of 145Nm at 4,000rpm. The 2.0L engine offers power of 153hp at 6,000rpm and torque of 200Nm at 4,000rpm. Additionally, the 1.6L model is equipped with a four-speed automatic transmission, while its 2.0L counterpart offers a six-
speed automatic transmission. The new Mazda3’s cabin features an ergonomic humanmachine interface, with highlights including the a new 7” central display, voice commands and a rotary commander redesigned to ensure drivers can control the car’s infotainment system without taking their eyes off the road. Safety and stability features
include the Mazda Radar Cruise Control, rear vehicle monitoring system, distance recognition support system, navigation and smart brake support. In the UAE, the 1.6L engine is available at a starting price of AED63,000 ($17,152) from Galadari Automobiles, while the 2.0L engine starts from AED88,000 ($24,000).
OCTOBER 2015 TRUCK&FLEET ME 21
Feature
reNAulT SYMBOl The new Renault Symbol was launched this year by Renault in the GCC, and is the French carmaker’s latest offering for the B segment. The sedan is fitted with an automatic gearbox and a 1.6L 16V engine, offering maximum
power of 105hp at 5,750rpm and torque of 145Nm at 3,750rpm. In terms of storage, the sedan has a 510L boot space which can be increased to up to 1,257L with the rear seat folded. “The new Renault Symbol will deliver a level of equipment
TOYOTA cAMrY A staple across taxi fleets in the UAE, the Toyota Camry is a familiar sight. The 2016 version of the popular mid-size sedan comes with a bumper-to-bumper redesign and fresh styling. Under the hood, the Camry is equipped with a 2.5L fourcylinder engine producing 181hp at 6,000rpm and 235Nm at 4,100rpm. Moreover, the six-speed automatic transmission enables a manual-like shift feeling, and is complemented by a flex-start control that proactively engages the lock-up clutch when starting off. This enhances power transfer efficiency and lowers engine speed, improving fuel economy. The improved suspension and steering systems, along with optimised aerodynamics, take handling to a new level of responsiveness. The interior has
seen modifications to the front seatback height and cushion shape, resulting in more comfortable seats. The rear seats split and fold forward to increase storage space. On the SE+ and Limited variants, the car now comes with 10 airbags alongside enhanced vehicle stability control, ABS, electronic brake-force distribution, brake assist and other safety features. The car also includes a rear-view monitor with static guide lines in the Camry SE, along with rear parking sensors. Since its global launch in 1982, Camry has sold 15 million models worldwide. In the UAE, Al-Futtaim Motors has sold more than 150,000 units it was introduced in 1992.
15 million
units sold worldwide
22 TRUCK&FLEET ME OCTOBER 2015
normally associated with vehicles from the next segment up,” says Hakim Boutehra, managing director at Renault Middle East. The vehicle comes with steering wheel controls, a cruise control and speed limiter, and is also furnished with an automatic
air-conditioning system. The Renault Symbol also features a new multimedia system offering a 7” touchscreen and GPS.
510L boot space
Feature
cHeVrOleT MAlIBu With an array of customer-focused technologies, the 2015 Chevrolet Malibu raises the bar when it comes to performance, connectivity and crash-avoidance capability. In terms of performance, the Malibu offers a line-up of fourand six-cylinder engines with noise-reducing features. The Ecotec 2.4L dual overhead cam, four-cylinder engine produces 170hp at 5800rpm and 230Nm of torque at 4600rpm, going 0-100km/h in 10.2 seconds. The 3.0L engine produces 258hp at 6900rpm and 290Nm of torque at 5600 rpm, reaching 100km/h in 8.1 seconds. Both engines are offered with a Hydra-Matic sixspeed automatic transmission. On the technology front, the vehicle comes with Chevrolet’s MyLink infotainment system, which allows users to engage
smartphone functions hands-free. Connectivity can be provided through USB, Bluetooth and aux-in. Customers can also opt to purchase an integrated navigation system. Safety features include a side blind zone alert, rear cross traffic alert, forward collision alert and lane departure warning. The vehicle also comes with 10 standard and two optional air bags, and a rear vision camera is also available. Its structure consists of 65% high-strength and ultra-high-strength steels, full-length frame rails and a reinforced safety cage. Middle East customers can avail of a booking service with same-day delivery, regional 24x7 roadside assistance and a regional three-year/100,000km warranty. Chevrolet’s scheduled maintenance interval is once every 10,000 km.
C
M
Y
CM
MY
CY
PeuGeOT 301 One of the more economical options for fleet owners, the 2016 Peugeot 301 is a safe bet for those looking for a simple, nofrills vehicle. The 301 comes with a 1.6L fourcylinder engine mated to a fourspeed transmission, delivering
CMY
115hp at 5,050rpm and a torque of 150Nm at 4,000rpm. Safety features on the sedan include rear parking assistance and ABS. In addition, the hazard lights on the 301 come on automatically in the event of harsh braking, allowing the
24 TRUCK&FLEET ME OCTOBER 2015
driver to stay focused on the road. The lights turn off once the driver accelerates again. This feature is standard or optional, depending on the country. In keeping with the no-frills approach, the vehicle comes equipped with a manual A/C. It
also offers front and rear electric windows, central locking with keyless entry and tilt-adjustable power steering.
115hp at 5,050rpm
K
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COMMENT
Better regulation required for the vehicle rental sector Ashish NANdA, seNior geNerAl mANAger At shift CAr reNtAl, disCusses some of the ChAlleNges fACiNg vehiCle leAsiNg firms Ashish Nanda, senior general manager of Shift Car Rental, a member of the AW Rostamani Group
T
he car rental industry is certainly highly competitive; customers have high expectations from rental firms, and there’s a plethora of options to suit every budget. Rental companies face numerous challenges on a day-to-day basis, in terms of both customers and regulatory matters. Sometimes, even a small dispute with the customer over minor damages during collection of the vehicle can have an effect on the choice of rental company the second time around. A great way to tackle this is to have digital check-outs with photographs for records, a system in which the rental agent marks the condition of the car along with any previous damage. If the vehicle’s condition can be captured digitally through photographs, then they can act as proof of the condition of the rented car. If damage occurs, the photographs can be retrieved and compared, thus ensuring customer satisfaction and retention. Another major challenge is that there is a high accident rate of 40-45% of the fleet. This has an overwhelming effect on profits, as a fleet goes standstill until claims and repairs are resolved. In an ideal situation, customers would be more careful and observant on the roads. However, it would also be beneficial for rental firms to reward clients for safe driving. One suggestion is implementing a no-
accident bonus to control accident rates. Other issues facing rental firms are from a regulatory perspective. When a customer commits a traffic violation on one vehicle, it results in the entire company account being blocked until the penalty is paid, hence preventing the firm from conducting any transaction on the car during that period, be it a vehicle registration or renewal. This becomes taxing for the company. In case of property damages, it takes even longer, and this results in a loss of revenue as the vehicle cannot be in use until the case is solved. This also applies in case of accidents involving drunk driving, hit and run, driving without a licence, theft and so on, as the judgment takes a longer time, resulting in loss of revenue during the interim. In such cases, perhaps a legal document stating that the case is in progress can be provided to resume business transactions. This acts as a guarantee pertaining to the pending penalties and damages and also ensures that business is not affected. Another issue that arises is the lack of uniformity in the rules and regulations across the emirates. This becomes a matter of concern when a traffic violation or accident occurs in another emirate. To tackle this, a framework of regulations can be implemented at the federal level to overcome such issues when two or more emirates are involved.
“when a customer commits a traffic violation on one vehicle, it results in the entire company account being blocked” 26 TRUCK&FLEET ME OCTOBER 2015
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WORKSHOP
WORKSHOP Maintaining yOuR fleet’S efficiency
CME opEns MiChElin truCk sErviCE CEntrE in Abu DhAbi
Ahmed Al Fahim, chairman of the Al Fahim Group, inaugurates the new centre.
Central Motors and Equipment (CME), a subsidiary of Abu Dhabi-based Al Fahim Group, and Michelin Tyres have opened the first Michelin Truck Service Centre (MTSC) in Mussafah.
13%
Growth forecast for Saudi tyre market between 2015-20 28 TRUCK&FLEET ME OCTOBER 2015
The 929sqm MTSC is equipped with facilities such as a computerised truck-tyre alignment machine, truck-tyre balancing machine, truck-tyre repair machine, tyre
fitment and removal, as well as other tyre services for trucks and buses. The centre will also sell after-market products such as batteries, valves and extensions. “CME, Michelin’s sole distributor in Abu Dhabi, is cementing its footprint in the market,” said Ahmed Al Fahim, chairman of Al Fahim Group. “Various developments in real estate, tourism and infrastructure have driven us to invest over AED2 million [$544,529] to open this new after-market truck centre.” Michelin AIM (Africa, India and Middle East) opened its first MTSC in 2009 and now operates 20 centres in KSA, UAE and Oman. By the end of 2015, it will have 25, said Srinivas Chitturi, MTSC partnership programme manager for Michelin AIM. “This strategic investment will help Michelin and CME to grow faster in a very dynamic transportation sector. It will also help to meet the growing expectations of transporters on quality products and services.” In addition to the MTSC, Michelin has also opened two branches of its Tyreplus franchise network in Mussafah, bringing the number of outlets to 23 in the UAE and 10 in Abu Dhabi.
Taiwan TaRgETs UaE FoR paRTs ExpoRT Taiwan is looking to boost trade with the UAE, a key market for the sale of Taiwanese auto parts. Trade between the two countries grew about 7.4% to $7.2 billion in 2014, compared
to $6.7 billion the previous year. The total output of Taiwan’s auto component industry amounted to $6.6 billion last year, with exports to the UAE exceeding $115 million in value.
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A ROBUST AND DIVERSE RANGE OF TRUCKS FOR EVERY NEED.
WORKSHOP woRKsHop
Saudi tOtal tO exPand factORy at Kaec
Saudi Total currently has a 65,000sqm plant for blending and packaging lubricants.
Saudi Total has announced plans to expand its factory at the Industrial Valley in King
Abdullah Economic City, to strengthen its presence in the Saudi market. The expansion will enable the company to keep pace with rising demand for its products, including Total oils and lubricants. Saudi Total currently has a 65,000sqm plant for blending and packaging lubricants. The new expansion plan will see the company invest SAR 25 million before the end of this year to reach an annual capacity of 42,000 tonnes. The expansion will focus on the construction of an additional packaging line, in addition to the operational work related to production, packaging and distribution.
QuicK tiPS Secure loads on your truck using the following tips: 1. Ensure the load platform, bodywork and load-securing equipment on your vehicle are sound and serviceable. Be sure to follow the vehicle and blocking equipment manufacturer’s recommendations. 2. Determine the securing method(s) best adapted to the cargo (locking, blocking, lashing, top-over lashing or a combination). Secure cargo so that it cannot move, roll over or fall off the vehicle. 3. Ensure that the securing equipment does not damage the cargo, and can withstand
BapCo LaUnCHEs LUBRiCanTs
conditions like bad roads and poor weather. 4. Distribute the cargo such that the centre of gravity of the total cargo lies as close
Bahrain Petroleum Company (BAPCO) has launched a new range of 12 automotive lubricants for petrol and diesel engines. The company set up its lubricant business in 2011 as part of a product diversification strategy. The new lubricants are now available at automobile parts dealers, fuel stations and workshops across the Kingdom, through authorised distributors Nass Commercial.
as possible to the longitudinal axis of the truck and is kept as low as possible. Use friction mats, boards, straps and beams to support cargo. 5. Drive smoothly and avoid sudden changes of direction and heavy braking. Check the cargo securing regularly, especially after harsh braking. Source: European Best Practice Guidelines on Cargo Securing for Road Transport
VOlVO TRuCkS OffERS TandEm axlE lifT Volvo Trucks offers a new function that makes it possible to disengage and raise the second driven axle, providing better road grip and enhanced fuel savings. The Tandem Axle Lift function is designed for heavy-duty transport, where trucks carry loads one way and return empty, such as in construction or bulk cargo operations. It allows the truck’s second driven axle to be disengaged and its wheels raised off the road when the truck is driven empty, said Jonas Odermalm, segment manager Construction at Volvo Trucks. A key advantage of this is fuel savings, as driving with the second
driven axle raised saves up to 4% in fuel compared with having all the axles lowered. By replacing the differential in the first driven axle with a dog clutch, the second driven axle can be disengaged and raised. This gives the driver access to both the power and capacity of two driven axles (6x4) and the better manoeuvrability of a single driven axle (4x2). Moreover, driving with the second driven axle raised also cuts the turning circle by a metre, creating less wear on tyres and suspension systems. The new function is available for the Volvo FM, Volvo FMX, Volvo FH and Volvo FH16.
The Tandem Axle Lift function allows the truck’s second driven axle to be disengaged.
“VaRiOuS deVelOPMentS in Real eState, tOuRiSM and infRaStRuctuRe HaVe dRiVen uS tO inVeSt [in] tHiS neW afteR-MaRKet tRucK centRe” Ahmed Al Fahim, chairman of Al Fahim Group OCTOBER 2015 TRUCK&FLEET ME 31
PARTING SHOT
Scaling new heights The NissaN PaTrol smashes world record for fasTesT saNd duNe asceNT
E
asily one of the most popular SUVs in the region, the Nissan Patrol has cemented its status in the off-roading segment, clinching a Guinness World Record for scaling a sand dune in Jordan. Piloted by an off-roading instructor, the Patrol climbed a 100m dune in Jordan’s Wadi Rum in 4.9 seconds for its second Guinness World Record – it also has the record for the heaviest object pulled by a production vehicle. That record was set at Sharjah International Airport in the UAE, where an unmodified production Nissan Patrol pulled a cargo plane weighing 170.9 tonnes
32 TRUCK&FLEET ME OCTOBER 2015
(including fuel and cargo) for over 50m, breaking the previous record by 15 tonnes. “The Nissan Patrol has again proved that there are no conditions it can’t tackle and conquer. We believe that this latest award shows the Nissan Patrol is one of the best production cars for off-roading and dune bashing on the market,” says Samir Cherfan, Nissan Middle East managing director. The features that make the Patrol wellsuited to the off-roading segment include its hydraulic body motion control system, which keeps the car flatter with less body roll during lane-changing and cornering and delivers stability on rugged and sandy tracks.
The Nissan Patrol also includes an AllMode 4x4 system, which allows the driver to quickly switch between four drive modes – sand, on-road, snow and rock – with the flick of a switch. Its hill start assist and hill descent control functions also can be used for braking on sloped road surfaces. The first Nissan Patrol in the Middle East arrived in Kuwait in 1956, Cherfan adds. The vehicle sold 34,015 units across the GCC in the 2014 financial year. “While loyalty to the Nissan Patrol goes back decades, we’re expanding to a new audience all the time, as the record number of vehicles leaving the showrooms indicates.”
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Middle East Tyres LLC
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