Truck&Fleet ME August 2022 by CPI Trade Media

VEHICLES/ TECH / TRANSPORTATION/LOGISTICS

1OO/AUGUST 2O22

MIDDLE EAST

LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y

E H T O T E C A R E TH e h t g n i r o l p ex e u s s i l a i c e : Sp ct or 0 e s 0 1 t @ e E e fl M F e & h T in t n o i t a t r o p ans f u t ur e o f t r

XTREM ROBUSTNESS

RENAULT TRUCKS K XTREM The Renault Trucks K Evolution Xtrem is the most robust truck in the market with a payload of up to 40T; Optidriver Xtended gearbox, full chassis reinforcements and many more. Ideally suited to quarries, mud and uneven surfaces, the Renault Trucks K makes sure your assignments will be completed successfully, even on the most challenging terrains. Chassis, drivetrain and high approach angle enable you to work under the most extreme situations with maximum traction and efficiency.

middle-east.renault-trucks.com

CONTENTS

CONTENTS T&FME AT 100

THE NEXT CENTURY T&FME‘s 100th issue and line-up of experts run-down 100 things you should know about the Future of Transportation.

ALSO THIS ISSUE … NEWS

06 / NEWS FROM THE MONTH Audi and Siemens join the fight to electrify the UAE’s EV infrastructure charge. TOP 10: NEXT-GEN VEHICLES

12 / A NEW AUTO-CRACY One to 10 of the 100 run-down of the Future of Transportation looks at the best-of-the-best of emerging and available next-gen vehicles.

INDUSTRY SURVEY

16 / FACING UP TO THE FUTURE Experts from acrosss the industry discuss the choices facing the fleet sector in the region – plus what do businesses think about fuel rises and electric vehicles? OPINION

22 / A NEW DEAL It’s time for dealers to shift focus from selling cars to servicing its customers better argues Publicis’ Matthias Von Alten. TOP 20: OEMS ON THE CUTTING EDGE

26 / THE INNOVATORS T&FME looks at the Top 20 OEMs and manufacturers for the fleet sector. ELECTRIC TRUCKS

36 / GIANT KILLERS? How Quantron is taking theory into practice as it takes on the automotive majors. INTERVIEW

38 / POLE POSITION Al-Futtaim Automotive’s senior managing director Vincent Wijnen on bringing Polestar and next gen services to the region.

meconstructionnews.com

AUGUST 2022 01

WELCOME

GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472

A FUTURE, WITH A PAST Well, here we are. The 100th issue of Truck&Fleet Middle East. After eight years, reaching the milestone feels like a moment to celebrate how far the transportation and logistics industry has come and also the best time to look forwards to an exciting future. As many of us have learned the hard way over the past decade, the only thing certain about change is change itself. And which is why we are dedicating this special occasion with a look at the Future of Transportation. As many of you will know, we also have our upcoming Fleet and Mobility Summit at the end of September and both are looking forwards not backwards because fleets must learn from the past but earn from the future. Bear with me for a moment though as I recall the early months of the magazine. It was then a supplement to our sister publication Construction Machinery Middle East and like that publication T&FME (as it was to be better known in the years ahead) was primarily concerned with the construction industry in the region. Most of the vehicles were heavies, like the Volvo FMX, a truck which was then on its way to becoming a pioneer in automated transmissions here, and the last generations from Daimler, Renault, Scania, et al. Most were coming to the end of their respective lives; and ones that had been dogged by the need to keep up with the engine emission changes that were rapidly being introduced. Well, in many other markets. Here in the Middle East, we were still largely rocking our Euro 2 and 3 trucks on site and in quarries. At times, writing the early issues of

the magazine it felt like the rest of the world was continuing on, despite us, not with us. That changed with the introduction of Euro 4 standards in the UAE and we were at least able to start considering that maybe we weren’t the legacy and traditional market we were stereotyped as. By the time, I returned from my 18 month sabbatical in 2016, it was obvious that things were moving on and the conversation has moved on to what technology that in other markets can now help drive down costs and help fleets stay in markets such as urban deliveries and waste management as rules and regulations rush to meet climate ambitions. The nature of the fleet business has changed and widened. It is no longer about large heavy fleets or rickety pickups. E-commerce and digitalisation are creating new styles of professional vehicle operations and we have embraced that in the magazine. I really believe that it has never been a more exciting time to be in this sector or industry – and hopefully you’ll see why in this issue. One last thing. I just want to thank all the guys that are working and have worked on the magazine. Without people like Bipin Soneji, Jerusha Sequeira, Stian Overdahl, Brian Fernandes, Simon Cobon, Percival Manalaysay, Paul Godfrey, Jason Saundalkar, Andy Pitois and our publisher Raz Islam – who was crazy enough to green light the magazine in the first place and has provided his invaluable support over the years – we wouldn’t be here today. And most of all, thank you to all our readers. See you at the 200th issue.

DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473 EDITORIAL EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 ADVERTISING SALES MANAGER BRIAN FERNANDES brian.fernandes@cpitrademedia.com +971 4 375 5479 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com MARKETING & EVENTS EVENTS & CONFERENCE PRODUCER PAUL GODFREY paul.godfrey@cpitrademedia.com +971 4 375 5470 EVENTS EXECUTIVE MINARA SALAKHI minara.s@cpitrademedia.com +971 4 433 2856 CIRCULATION & PRODUCTION DATA & DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT ABDUL BAEIS FINANCE CREDIT CONTROL EXECUTIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 FOUNDER DOMINIC DE SOUSA (1959-2015)

The publisher of this magazine has made every effort to ensure the content the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority

STEPHEN WHITE STEPHEN.WHITE@CPITRADEMEDIA.COM 02 AUGUST 2022

is accurate on the date of publication. The opinions and views expressed in

EDITOR, TRUCK&FLEET ME

meconstructionnews.com

CMY

RADISSON RED / DUBAI / UAE

Supporting Fleets and delivery businesses to be smarter operators 21 Sept 2022

About the

Fleet & Mobility Summit

Gear up

From on-demand services to last mile deliveries, the Fleet & Mobility Summit will bring key stakeholders together to extend their knowledge base and see the technology and practices that will shape their businesses for years to come.

Hear from industry veterans and disrupters alike about their digital transformation and new service rollout experiences. Learn about new practices and ways to finance your fleet while remaining competitive in a rapidly advancing market. Find out how new mobility technology, services and vehicles can upgrade and grow your business while maintaining high levels of customer retention and satisfaction. Listen to the day-to-day experiences of key professionals in the sector and how they faced and overcame their own challenging situations.

The regional market has seen some remarkable changes to the fleet and mobility sectors in the past halfdecade. The rise of e-commerce and digitalisation means these sectors have been among the few beneficiaries of the Covid pandemic with both private and end-user clients accessing services in unprecedented.

Likewise, technology is powering a revolution in how sectors such as hospitality, F&B and retail can directly serve homes and offices via their own fleet or third-party service providers. Mobility is also opening up possibilities in adopting ondemand, leasing and rental services to keep costs down and protect your operation’s flexibility. Ultimately, this is an event that will help companies managing their own fleet or relying on fleet services to understand how the market will continue to evolve and what choices they should make to be competitive.

Unique

Opportunity Brought to the market by Truck & Fleet ME, the Fleet & Mobility Summit will give the region’s leading distribution, mobility solution providers and channel operators, an overview of the major trends emerging in the market. The first event of its kind in the region, it will also give fleet professionals and clients, the opportunity to talk directly with leasing companies, distributors, financing firms and OEMs to see what is new and innovative in the market.

For Change

Get in touch

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

Date

Venue

21 Sept

Radisson Red

Website

fleetandmobilitysummit.com

Complimentary

2022

Agenda

Technology

Latest

Evolution

Solutions

With several networking breaks, you’ll be able to get face time with panellists and presenters, following on from interactive presentations and Q&A sessions.

How advanced new technology will continue to transform the market and how it can suit your business

The latest vehicles and mobility solutions available for businesses involved in fleet leasing, rental, deliveries and on-demand mobility services

Role of

Knowledge

E-Mobility

Experience

The role of role of e-mobility and smart transportation for the next decade

Sharing knowledge and experience of successful fleet and mobility operations

Market

The Digital

Intel

Transformation

Market intelligence, trends and predictions for the future of mobility in the region

Set to impact the fleet and mobility sector in the region and transform industry futures.

2022

Event Partners TRANSPORT PARTNER

TECHNOLOGY PARTNER

PRESENTED BY

NETWORK

TRIO MAKE POWER PLAY IN THE UAE / COURT SUCCESS FOR NISSAN MIDDLE EAST FUEL PRICE BOON FOR MOTOBOY / EMIRATI TARGETS SME ELECTRIC VEHICLE USERS

NETWORK UAE, Audi and Siemens to build electric vehicle charging network MOEI, SIEMENS AND AUDI TO CO-OPERATE ON INITIATIVES THAT PROMOTE THE SWITCH TO ELECTRIC VEHICLES AND SUSTAINABLE MOBILITY ELECTRIC VEHICLES The UAE has taken a major step forwards in its bid to make switching to electric vehicles a viable choice for drivers after its Ministry of Energy and Infrastructure (MoEI), Audi Middle East, and Siemens signed an agreement to “cooperate on boosting electric vehicle charging capacity on federal roads and increasing adoption of EVs across the country”. The deal follows the MoEI’s selection of Siemens technology for a nationwide network of ultra-fast chargers in June. The discussions with Audi

are expected to expand on this initiative as part of the brand’s ambitious infrastructure investment plans across the UAE, said the ministry. “The UAE is committed to achieving net-zero emissions by 2050 and is on track to being the leader in the Middle East and North Africa,” said Sharif Salim Al Olama, UnderSecretary of the Ministry of Energy and Industry. “Electric vehicles are integral to this effort, and providing fast, efficient and convenient EV charging infrastructure with partners like Siemens and Audi is a crucial

step in the energy transition.” Since 2020, Audi has been the largest manufacturer of electric vehicles among Germany’s three premium brands. More than 20 all-electric Audi models will be introduced by 2026 and the brand says it is investing in several initiatives focusing on the development of a high-performance charging infrastructure in order to contribute to EV readiness in the region. “Audi Middle East is delighted to begin this partnership which further underlines our commitment to electrification in the UAE as we

continue to redefine the mobility of the future,” said Carsten Bender, managing director of Audi Middle East. “We have been very vocal about our commitment to electrification in the region and look forward through this collaboration to developing solutions that will support EV customers in the UAE based around the latest technologies and charging solutions such as the Audi Charge Hub concept.” “To not only be aligned with the UAE’s “Net Zero 2050” initiative, but now be an active participant in it, is an honour and a privilege we are very proud of.”

THE UAE BEGAN ITS HIGHWAY CHARGING ROLL-OUT IN JUNE WITH SIEMENS D 160KW ULTRA-FAST CHARGERS NOW IN FOUR EMIRATES

06 AUGUST 2022

meconstructionnews.com

NETWORK

PUMP PRICE RISES FUELLING MOTOBOY GROWTH DELIVERIES

COURT THROWS OUT AL DAHANA CLAIM AGAINST NISSAN ME DISTRIBUTORS

The Dubai Court of Appeal has dismissed the claims of Nissan’s former joint-venture partner Al Dahana FZCO against the Japanese brand following the dissolving of Nissan Gulf FZCO in 2019. The comprehensive judgement in favor of Nissan reverses an earlier ruling in favour of the Dubai-based automotive retailer and distributor of vehicles and spare parts made by the Dubai Court of the First Instance. Nissan has welcomed the 8 June, 2022 judgement from the Dubai Court of Appeal ruling in its favour which effectively closes the long-running legal case brought by its former distribution partner. “We welcome the judgement from the Dubai Court of Appeal, which means that Nissan has now been successful in defending a broad range of different claims from Al Dahana,” said Thierry Sabbagh, president, Nissan Saudi Arabia and managing director, Nissan Middle East FZE, in a statement. “Throughout this period we have been confident that Nissan has acted properly and now we can move forwards with the support of our employees, customers and valued partners in the region. “The Middle East has strategic importance for Nissan, where nearly 30 years ago we were the first Japanese carmaker to establish a regional headquarters. Having celebrated the 70th anniversary of the Nissan Patrol at Expo 2020 Dubai last December as the official automotive partner, we’re extremely proud of our heritage, and of the essential part that Dubai will continue to play in Nissan’s success.” meconstructionnews.com

Motoboy Delivery Services (Motoboy) says rising fuel costs in the UAE is helping it to see rapidly growing demand. The home-grown on-demand electric delivery services provider is expanding its electric on-demand delivery services to over 30 partners and counting in Dubai, across six sectors that include F&B, e-commerce, construction, logistics, luxury retail, travel and transportation. Among them is Talabat UAE, where it has agreed a month-long pilot phase, offering on-demand sustainable deliveries across Dubai, as the regionally renowned e-commerce platform seeks ecofriendly solutions for its deliveries.

Motoboy is also offering prospective partners and individuals and exclusive first five deliveries free, when using its sustainable delivery solutions. As the UAE’s first and only RTA-approved sustainable electric bike logistics solutions provider, Motoboy has

become the delivery solutions provider of choice in Dubai since launching its services in May 2022. Motoboy will further expand its fleet with an additional 50 electric vehicles in the coming months; aligning with its aim to achieve zero carbon emissions in the long term. “With rising prices, restaurants, companies and individuals are seeking affordable and sustainable alternatives for their delivery requirements,” said Farid Dallal, Founder and CEO of Motoboy. “Other delivery providers have to either incur the increased prices or levy them onto the customer. We are humbled by the response Motoboy has received since launching in Dubai.”

EMIRATI TARGETS SME ELECTRIC VEHICLE USERS CAR SHARING The UAE’s growing carsharing market has a new player after the launch of Motor, the Emirates first dedicated electric car sharing platform. Declaring the launch as a part of its mission to reduce the region’s carbon footprint through responsible transportation, the platform is the brainchild of Hammad Al Mazoorei, an ambitious Emirati entrepreneur and the managing director of Motor. Businesses who utilise the platform will benefit from

many efficiencies, allowing companies to aggregate car rentals into one platform thanks to custom mobility solutions, providing a flexible opportunity to increase their car rentals’ own fleet utilisation. MOTOR itself provides access to world-leading electric vehicles (EVs) through its car-sharing platform, Motor SHARE, which like competitors such as eKar offers users short and long-term options at affordable prices. According to the firm rising fuel costs has helped

create a substantial increase in demand for electric vehicles across the UAE. “As the UAE moves towards reinforcing its resolve to fight climate change through the ambitious ‘UAE Net Zero 2050’, more and more businesses and residents are looking to convert to electric vehicles,” said Al Mazoorei. “Our goal at MOTOR is not only to further accelerate the sustainable transition to EVs, but we also want to make sustainable mobility more accessible, affordable, and flexible.”

AUGUST 2022 07

NETWORK

TIER REACHES DUBAI FESTIVAL CITY DEAL MICROMOBILITY

Berlin-based TIER Mobility is set to operate e-bike micro-mobility services in Dubai Festival City.Al Futtaim Group Real Estate said its partnership with the firm will make movement throughout the area seamless and affordable, while also providing an environmentally friendly method of transport to get around the destination and community. TIER’s initial fleet of e-bikes, which have pedal assistance up to 25 km/h, will be located at the Marsa Plaza promenade with plans of expanding to other locations around Dubai Festival City. The e-bikes

are geofenced which assist with challenges like irresponsible parking and riding in restricted areas. The move is said to be in line with Dubai Festival City’s goal of investing in establishing community relationships

and building innovative communities. The collaboration with TIER Mobility will present residents, mall visitors, and tenants with a low-carbon alternative to get around the city using e-bikes, the statement continued. “At TIER Mobility, our mission is to Change Mobility for Good and we are pleased to launch our e-bikes for the first time in Dubai. The strategic partnership with Dubai Festival City will create positive waves for sustainable transportation, translating into superior quality customer service to the destination’s visitors, and residents,” said Amir Melad, General Manager, Middle East of TIER

DAYIM EQUIPMENT RENTAL TO OPERATE FLEET FACILITY FOR THE FLAGSHIP SAUDI TOURIST SPOTS FLEET Dayim Equipment Rental has signed a deal to become the exclusive owner and operator of the PMV Fulfillment Centre for the AMAALA and Red Sea Project for The Red Sea Development Company. Speaking exclusively to Mark Dowdall at Truck and Fleet’s sister publication Construction Machinery Middle East, Andy Carter, general manager of Dayim Equipment Rental explained that as part of the deal Dayim Equipment Rental

had been given a 10,000sqm piece of land on the project site, on which it will put and manage its own PMV Fulfillment Centre. “It’s basically a Dayim operation but on the actual Red Sea Project so we are renting our core equipment, but we are also managing for the Red Sea Development company some of our non-core assets,” he said. “Any requirements they’ve got for plant, equipment, vehicles or logistic support, we can do. We’re doing our normal equipment rental service offering

but we are doing what we call a managed service, so we are managing the site as well. We are on the site checking all the equipment from the subcontractors, carrying out inspection checks on all the equipment so it’s not just an equipment rental place. And this is where we want to take the business. We want to be an equipment rental business, but we also want to show our expertise in managing services and what we know about plant and equipment.”

AL FUTTAIM NEW VOLVO APP LETS YOU SET THE AC BEFORE YOU LEAVE HOME APPS

Al-Futtaim’s Trading Enterprises says the newly available Volvo Car App will give customers access to a number of useful controls and enable emergency assistance wherever they are, including setting climate controls and checking charge levels. The official distributor of Volvo Cars in the UAE launched the Volvo Car App for the UAE market today and with controls such as monitoring charging a Volvo full electric or plugin hybrid, the ability to track charge levels and electricity consumption, remotely starting or stopping vehicle as well as locking and unlocking doors. In addition, customers will be able to access roadside assistance and the ‘Contact Us’ feature directly through the app. “Particularly vital at this time of the year as the summer heat sets in, customers will have the ability to control interior climate and set a pre-cooling timer, turning on the AC through app before they leave the house to enjoy a cool vehicle immediately as they enter,” it explained at launch. Oscar Rivoli, Managing Director at Trading Enterprises, added: “We are excited to announce the launch of the Volvo Cars App in the UAE, with a goal of making life easier for our customers. The Volvo Cars App is available to download now from both the Apple App store and Google Play Store, free of charge. but is only compatible with 2022 models.

INSIDE THIS ISSUE: T&FME CELEBRATES ITS 100TH ISSUE WITH A SPECIAL ‘100’ AND A STAR LINE-UP OF EXPERTS TO DISCUSS THE FUTURE OF TRANSPORTATION

08 AUGUST 2022

meconstructionnews.com

NETWORK

DUBAI POLICE LOOKS AT HOW AI CAN HELP PROFESSIONAL DRIVERS DRIVERS

Dubai Police and Continental have hosted a roundtable discussing “AI Driving Technology” alongside AV Living Lab and Location Solutions in Dubai. Hosted at the AI Driving Hub, based in Dubai Police, General Department of Traffic office, the event brought together major executives from a range of sectors such as transportation, logistics and mobility services to discuss how AI technology and the Metaverse can be used to tackle road safety by correcting driver behaviour through a personalised data-scientific approach. Also in attendance was Colonel Jumaa Salem Bin Suwaidan, Acting Director of the General Directorate of Traffic at Dubai Police, who stressed that “Dubai Police is keen to strengthen its relationships and partnerships, and to exchange knowledge, experiences and best police practices in all fields”. Colonel

meconstructionnews.com

Bin Suwaidan went on to say that “the discussions focused on the best ways to use AI technology and the metaverse in dealing with topics related to traffic safety, altering drivers’ behaviour was by looking at individual trends using scientific data.” Through the AI Driving Hub, which is a joint innovation by AV Living Lab and Location Solutions,

a technological start-up focused on transforming mobility, drivers’ behaviour is evaluated and analysed to increase road safety, where general trends among drivers are defined, leading to more work that aims to enhance safety levels on the roads. The valuable insights from the psychophysiological

individual characteristics of the professional drivers can be used to correct unsafe behaviours. Research by AV Living Lab of professional drivers, such as – truck drivers, light vehicle and van delivery drivers, and taxi drivers across the UAE, found: • Logistics companies scored well in aggression - 18% against the average of 24% - and road rule compliance (speeding and traffic signalization) - 90% against the average of 65%. • Public transportation companies’ driving scores were better than overall average in attention 67% compared to overall average 64%, aggression score 21% against 24% on average, and road rule compliance score 72% against average 65%. • The driver characteristic that appears to require most attention across all mobility industries is reaction time, currently averaging to 47%.

AUGUST 2022 09

FEATURE

A ROUTE TO A MORE

CONNECTED KINGDOM

Juffali Commercial Vehicles Saudi Arabia looks at its role of modernising Saudi’s bus network and economy

he public transport landscape is changing rapidly in Saudi Arabia as it gears up to meet its Saudi Vision 2030 ambitions of a more connected, diverse and advanced economy. While the investment in rail and city metro systems have grabbed the headlines, arguably, it is the expansion of the bus network by the national bus company SAPTCO (Saudi Public Transport Company) that will have the most most profound effect. Tapping into the huge resources , modern bus rapid transit systems are being developed in cities such as Riyadh and Madina as the government gradually links up the sprawling country and cities. Most of the focus has been on building a modern and capable fleet in the Kingdom. Among them will be a 600 Mercedes‑Benz buses, specially designed for Saudi Arabia, and cater to the travel

10 AUGUST 2022

needs of citizens and visitors of Riyadh. When SAPTCO and its a joint venture partner, French transport operator RATP – Dev (Régie Autonome des Transports Parisiens), needed to select a huge intake of vehicles into its network it turned to Juffali Commercial Vehicles Saudi Arabia ( JCV). In association with Daimler AG, JCV provides its customers with unparalleled quality Mercedes‑Benz products, such as the world class Mercedes‑Benz Citaro, with reliable service and support with full coverage of the Kingdom. The transport joint venture’s order for 600 Mercedes‑Benz Citaro buses represents the single largest order for a city bus range in the history of Daimler buses. It also represents the cutting edge vehicles needed to operate on the newly established BRT (Bus Rapid Transit) routes in the Saudi capital. Juffali Commercial Vehicles Saudi Arabia

With Vision 2030, Saudi Arabia has chosen the right direction and the way this vision is executed is positive”

( JCV) is the sole agent and distributor of Mercedes‑Benz Trucks, Vans, and Buses in Saudi Arabia and the buses are specially adapted to operate in the hot desert region of Saudi Arabia. The equipment includes an advanced air conditioning system, circulating air blowers in the doors, and double‑glazed and tinted side windows. The interior and exterior design of the vehicles has been specifically designed to meet customer requirements from the municipal authorities in Riyadh. The buses are also equipped with the latest information technology systems. All buses are equipped with WIFI, 18” flat screen screens in the passenger compartment, and cashless payment systems. In addition, automatic counting of passengers at the doors, as well as intelligent vehicle grids with control systems and service parts, support fleet operators by setting up schedules and maintenance intervals. meconstructionnews.com

INTERVIEW

Heading to 2030

You only need to look at the numbers if you want to understand the importance of the Saudi Arabian market to the commercial vehicles sector in the Middle East. According to Future Market Insights Global and Consulting, truck sales alone touched $560 million in 2021 and could reach nearly $900 million in the next five years. Fellow data cruncher Statista also estimates that 80,000 commercial vehicles were sold in the Kingdom in 2021. Despite a challenging global landscape, Saudi’s determination to pour money into its economy and infrastructure while continuing its program of reform under the Saudi Vision 2030 framework makes it one of the most exciting places to be heading as a major industry partner as we head further into the decade. “I am optimistic about the upcoming years,” begins Heiko Schulze, CEO, Juffali Commercial Vehicles Saudi Arabia ( JCV), adding that despite the disruption caused by the Covid‑19 pandemic, the

600

SAPTCO has ordered six hundred Mercedes‑ Benz Citaro buses ‒ the single largest order for a city bus range in the history of Daimler buses

Kingdom has maintained its economic development where others have faltered. “It seems to be that also 2022 will be a good year,” Schulze adds. “With Vision 2030, Saudi Arabia has chosen the right direction and the way this vision is executed is positive. Future regulations, when it comes to our industry sector, will also force our customers to renew their equipment. That is why I believe, in general, there is a positive development on the horizon, particularly for our industry sector.” JCV has been the powerhouse agent for Daimler’s range of Mercedes‑Benz Trucks, Vans, and Buses since 1976 ensuring that the German giant has maintained its preeminent status as the number one commercial vehicles brand in the market ever since. Schulze, however, stresses that buyers in the Kingdom have traditionally placed value and reliability over the very latest in commercial vehicle technology. “The trend of localisation and the demand for it will continue. It will get stronger,” he says. “With Saudi Vision 2030, Saudi Arabia

is striving to get more independent of the oil and develop different industry sectors. In this regard, localisation using the talent Saudi has available is essential, and this is why we have decided, not only to assemble the Mercedes Benz heavy trucks here but also light and medium duty Mitsubishi models.” “We want to focus on growth over the next 12 months. I believe we need to grow in all the sectors of our industry through the use of different approaches. We need to prepare ourselves to participate in the economic growth of the Kingdom and to be strident in being relatively better than our competitors,” he says. “We also need to have better solutions for customers than others do. This is what is on the agenda for the next 12 months. This is something we do permanently. We permanently question ourselves; whether we are on the right track, what needs to be enhanced, what needs to be changed, what needs to be reduced, or what needs to be strengthened. This is an ongoing process.”

A LEADING PARTNER Juffali Commercial Vehicles is recognised as a leading partner to the Saudi market and is a natural partner for organisations such as SAPTCO when they need to modernise their fleet.

meconstructionnews.com

AUGUST 2022 11

FUTURE OF TRANSPORTATION

THE FUTURE OF TRANSPORTATION Our Future of Transportation Special 100th issue, starts with T&FME looking at 10 vehicles and concepts setting the technology pace

12 AUGUST 2022

meconstructionnews.com

FUTURE OF TRANSPORTATION

ECANTER: FUSING THE BEST IN LCV AND ELECTRIC DRIVELINES

MEET ROXO: A DELIVERY STAR IN THE MAKING Roxo is an autonomous specialty delivery device, designed to travel on sidewalks and along roadsides, safely delivering smaller shipments to customers’ homes and businesses. Its features include pedestrian-safe technology, multiple cameras and LiDAR allowing the zero-emission, battery-powered bot to be aware of its surroundings. These features are coupled with machine-learning algorithms to detect and avoid obstacles, plot a safe path, and allow the bot to follow road and safety rules. Proprietary technology makes it highly capable, allowing it to navigate unpaved surfaces, curbs, and to even climb deep flights of steps for an extraordinary door-to-door delivery experience. FedEx Express and Dubai Integrated Economic Zones Authority (DIEZ) are trialling Roxo, in the Dubai Silicon Oasis (DSO) community on an optimised route along footpaths and roadsides with Roxo using laser detection and ranging sensors (LiDAR), multiple cameras, and radar, and coupled with machine-learning algorithms to avoid obstacles. Each battery-powered Roxo unit is 157 cm tall, and weighs 204 kg with a carrying capacity of 45 kg. Its versatile wheelbase can manoeuvre through rough and uneven surfaces, and also climb up and descend from pavements, says the delivery giant.

The difficulty of developing batteries and infrastructure to support larger and long haul trucks means that if you want to go electric, then you need to go light. At least for the next few years. Fuso’s eCanter is a prime example of how much further ahead LCVs are compared to their bigger cousins and is already being used in a number of last-mile projects around the world. We have even seen the truck make its debut in the Middle East at last year’s WETEX and it’s easy to see that it could be deployed here after a new and improved – and ready for series production – version was unveiled early in 2022. The Mitsubishi-Fuso corporation has recently stated that it wants all new models to be electric by 2039 in Japan, but the rate of development is so fast in electric vehicles that they could be dominating global production as we close out the first half of the century.

ESPRINTER: READY TO SPEED INTO FLEETS GLOBALLY Also heading out of the Daimler stable is the eSprinter and it is very much riding the cost-tails of some inviting grants and tax exemptions in Europe. Early models are already available in the pre-owned market there and you can even offset the upfront cost by tapping into financing if you want to go new. The entry of the Ford E-Transit has been shrugged off by the German giant as it prepares its new 2023 model for release with its tightly concealed specifications like to include a range of 260-320km (double previous models) and industry insiders believe there will be three battery options and a potential top speed of 120 km/hr.

E-TRANSIT CUSTOM: THE GREEN MAN IN A VAN As seen in our last issue, Ford has finally committed to electrifying its van range via its Turkish partner Ford Otosan. The company headquartered on the Mediterranean coast made waves with the excellent F-Max a couple of years ago and it’s really becoming Ford’s secret weapon when it comes to commercial vehicle development. An all-electric E-Transit began production in March this year as part of a two-year roll-out of electric vehicles bearing the Ford badge with the E-Transit Custom being the next off the production line and likely to head straight to the European market where the one-tonner has been traditionally so strong. “This is a watershed moment for commercial vehicle operators, and another hugely significant realisation of our Ford Pro ambitions,” said Hans Schep, general manager, Ford Pro, Europe. “Europe’s best-selling van just went all-electric and – supported by our Ford Pro one-stop-shop of productivityboosting services – the operating benefits this will bring to business across Europe cannot be overstated.”

meconstructionnews.com

AUGUST 2022 13

FUTURE OF TRANSPORTATION

READY TO ROLL? SEMI SEEN AT TX RODEO

TESLA SEMI: A MUSK HAVE FOR EARLY ADOPTERS It seems churlish to suggest that a truck yet to head into service is the granddaddy of all things heavy and electric but it can’t be coincidence that the reveal of the Tesla Semi five years ago kick-started a wave of large truck announcements. It has emerged this summer from its own hiatus in a string of announcements and photo ops, including a spin on the Laguna Seca racetrack, suggesting Elon Musk’s pet project could be close to fulfilling those early adopter orders, including the UAE’s own BEEAH. Rumours of supply chain issues (surely, post-Covid that’s not even worthy of gossip?) particularly with the batteries suggest that it has endured a troubled half-decade but it is expected to return to disrupt in the next 12 months. Wherever you stand on the pun in its title, its pick-up cousin, the Cybertruck, has, for T&FME’s money, the cooler name.

VERA: VEERING AWAY FROM LOGISTICS DRIVERS Volvo believes in autonomous vehicles, it just doesn’t think they should be on the road…yet. It’s been almost four years since Volvo first revealed VERA its foray into autonomous semi haulers and since then the Swedish company has been building its Volvo Autonomous Systems business up to turn the logistics vehicle and its dumper sibling TARA into real alternatives in closed environment settings. Arguably as important, is the work with DFDS at the Port of Gothenburg to use the V.A.S. Cloud solution to get driverless vehicles communicating with the port’s logistics centre. Volvo clearly believe that a suite of new technologies need to be created to make autonomous vehicles practical in the real world. “We see ourselves as an integrator of emerging technologies to create solutions, bundling hardware and software, and then if necessary, operating it on behalf of the customer,” says Nils Jaeger, president of Volvo Autonomous Solutions.

M GLORY: ONE FOR THE HOME TEAM New mobility can mean new industry and the UAE clearly intends to get itself further up the automotive ladder with the creation of cars and jobs through M Glory. Seemingly based on China-based Sokon’s own Glory compact SUV, the car is a statement of intent when it comes to elevating the sector in the region. Its recently unveiled the first plant of its kind in the UAE and is expected to produce 55,000 cars per year to meet a rising demand for green mobility. Under the leadership of the visionary Dr Magda Al Azazi it will create more than 1,000 jobs and the electric cars will be exported to the GCC, Egypt, Tanzania, Senegal, Mali and Kenya. “The factory will produce a variety of electric cars, the types and details of which will be revealed during the coming period,” Dr Al Azazi has stated.

CRUISE: A TOP GUN IN CONTROL General Motors has been determined to push ahead with a number of electric vehicles in the region sensing that the market could be a lot more receptive to new forms of mobility than it is often given credit for. We will soon see the entry of the Bolt EV and an electrified Hummer but the creation of its Brightdrop business will see an expansion of its commercial vehicle and fleet offerings into new markets. Highest on the list of potentials in the Middle East is the Cruise which is due to enter Dubai taxi fleet next year. The fully electric Cruise Origin is a level 4-5 autonomous vehicle designed to carry out ride-hailing duties. Like any emerging technology, Cruise Origin hasn’t been without its blips, including 20 of them gathering at an intersection and blocking traffic for two hours in their town of San Francisco. That said, it has also performed admirably since coming into trial service two years ago.

14 AUGUST 2022

meconstructionnews.com

FUTURE OF TRANSPORTATION

THE 8 ALTERNATIVES TO FOSSIL FUELS 1. ELECTRIC VEHICLES Cars and vans that run on mains electricity drawn from a charging point installed at your business or a participating service station.

2. FUEL-CELL ELECTRIC VEHICLES Vehicles powered by a fuel-cell that converts compressed hydrogen into electricity to power the vehicle.

3. GAS-TO-LIQUID VEHICLES Suitable for use in normal diesel engines, GTL is natural gas — the cleanest-burning fossil fuel — which has been converted to a liquid.

4. BIOFUELS Made from renewable sources such as sugarcane, biofuels can be used by themselves or blended with petrol and diesel.

ROBOTAXI: THE NEXT STEP IN TAXIS Talking of autonomous taxis, to develop the Ioniq 5 Robotaxi, Hyundai turned to driver-less vehicle specialist Motional. The Ioniq 5 Robotaxi features a technology-driven design that celebrates the innovation behind the autonomous operation. The vehicle’s sensor suite is prominently displayed across the exterior, easily distinguishing the robotaxi from human piloted vehicles. The Robotaxi, due to start trialling in 2023, has more than 30 sensors – a combination of cameras, radars, and lidar – that provide robust 360-degree perception, high-resolution images, and ultra-long range detection of objects for safe autonomous operation in diverse driving environments. The robotaxi will be outfitted with Motional’s proven driverless technology, which includes advanced machine learning systems – trained on decades of real world data – that enables the vehicle to safely navigate challenging and complex driving situations. “I’ve been developing autonomous vehicles for my entire adult life; the Ioniq 5 Robotaxi is the product of extensive collaboration between Hyundai and Motional we’re excited by this vehicle because it’s our first commercial product and it’s also the first time many people will experience driverless technology,” says Carl Janyema, president and CEO, Motional. “So, we look forward to launching this system and we look forward to serving hundreds of thousands of riders with the Ioniq platform,” he says.

5. HYBRIDS Powered by a mix of electricity and internal combustion, usually petrol or diesel, hybrid vehicles lower fuel emissions but deliver power and range.

CABLESS DRIVERLESS AXL IS 100% ROBOTIC

6. LIQUEFIED PETROLEUM GAS VEHICLES LPG burns cleaner than traditional fuels, producing lower emissions but engines must be modified before they can run on it.

7. LIQUID NATURAL GAS (LNG) A natural gas that has been converted to a liquid, LNG is a low-emission high-density fuel. This makes it particularly suitable for long distance haulage.

8. COMPRESSED NATURAL GAS (CNG) Methane stored at high pressure,

AXL: FROM CONCEPT TO CONSTRUCTION Scania and Volvo may have taken very different paths as companies, despite their shared Swedish history, but it is very hard to look at the AXL and not think of its compatriot VERA when seeing the concepts of its design. Like VERA, the Scania AXL concept is cab-less and can operate autonomously in specially controlled environments such as mines and large closed construction sites. The company says the Scania AXL is based on the company’s famous modular system and was developed by a team of engineering and software talent from across the firm. “With the Scania AXL concept truck, we are taking a significant step towards the smart transport systems of the future, where self-driving vehicles will play a natural part,” says Scania president and CEO Henrik Henriksson. The Scania AXL is steered and monitored by an intelligent control environment. Scania says that in

CNG can be used in specially

mines, for example, its autonomous operation is guided by a logistics system that tells the vehicle how

designed engines or in standard

it should perform. It is also powered by a combustion engine powered by renewable biofuels and a

petrol and diesel engines that

new intelligent front module replaces the traditional cab.

have been slightly modified.

meconstructionnews.com

AUGUST 2022 15

FUTURE OF TRANSPORTATION

THROUGH THE

C RYSTA The region is moving towards an era of being greener, more connected and, hopefully more financially sustainable

lowly through the murky and spinning waters, a picture is emerging of a potentially greener and smarter way to run your operation. It may not yet be clear exactly which driveline or cloud-powered solution will be best for you , but we do know that we cannot fight rising prices and competition without embracing some of the technology that is coming our way. As part of our special look at the future of transportation in the region, T&FME asked thousands of readers via our special mobility and fuel survey over the last two months, as well as approached a tranche of leading and important players for their thoughts. We now know that almost everyone agrees that change is happening and at close to breakneck speed. Richard Hall, sales director, Transport Overseas Group, sees that the use of cleaner vehicles using readily available technology should be encouraged in the market before we leap into an electrified or hydrogen-powered future.

16 AUGUST 2022

“We assume there will be better and further regulation of the market in order to better promote both safety and efficiency for commercial vehicles,” he remarks. “There will be some adoption of Euro 6 emission standards across the region by 2026 and this is needed. However, the older and more polluting vehicles must be put off the road and proper and better legislation is needed for this. Furthermore, a better and safer regulation on payloads and overall combination weights will be needed in order to further improve the current situation.” He adds that he believes there is still too few viable alternative drive system for trucks in middle east climates: “With diesel prices still relatively low – a Euro 6 diesel vehicle will still be much more cost effective than an electric or hybrid model,” he suggests. Scania’s Hans Wising agrees that electrification, in particular, is years away from being feasible due to a lack of infrastructure and green methods of producing the electricity in the first place: “Of course, we need to be looking

at the big picture (when it comes to sustainability) but there’s no silver bullet that is going to solve everything. When it comes to e-mobility or electrification, it will come but and it will not come across the board and at the same time. It will be in certain segments and certain applications because we are at the stage where the technology is under development. Right now, as an industry we are able to supply to electrical vehicles but not in all the segments. “What’s also important is that the business case is there – I understand that some fleets are already doing calculations and that is encouraging to hear. It has to go hand-in-hand. The technology and the distance business case in order for it to fly. Right now, the most realistic applications are shorter, light transports. We won’t see it carrying aggregates from Ras Al Khaimah. Well, we will see it eventually but not for some time...I do see an opportunity for it in waste management,” he adds. With many governments and private sector players trialling and exploring the possibilities of alternatives, he sees HVO

and CNG, as two strong candidates to replace fossil fuels in some applications. “We see different things becoming important, and some are already here, now. Different kinds of alternative fuels are already here today and that are available. We have biofuels. We have the natural gas for instance.” He continues: “Not everything is applicable to all the applications, but in one sense we can deliver CNG vehicles or alternative energy vehicles that can reach and match 6 legislation and standards.” A multi-solution approach depending on the application is something Hall is also fully backing with electric drives some way off in the future. “In the future and for some applications and market segments, hybrid and electric drives will be the trending technology in many Middle East markets.” He also suggests that we will continue to see wider adoption of technological aids to running fleets. “Being slightly behind the EU markets – currently many fleets are adopting telematic systems which

meconstructionnews.com

FUTURE OF TRANSPORTATION

AL BALL are already established in other areas of the world,” Hall notes. “We are seeing an increased level of awareness of our telematics system and its benefits have been experienced by customers. Even though it is not yet standard in the region, things are moving fast in this direction,” adds UD Trucks’ MEENA head Mourad Hedna. UD Trucks has been steadily adding to its Extra Mile telematics and FMS suite in the region and Hedna can detect a trend in using the technology to be safer and more connected. “As soon as the majority of the trucks are connected, we will be able to see fleet route planning and capacity optimisation, along with driver tracking and behavioural changes. Automation is still on the backseat for commercial vehicles in the current time, however, and more focus is geared towards road and driver safety on a micro level, with customers are requesting additional safety features in the trucks, such as air bags, EBS, ESC, and lane change support.” As explored in a recent issue of

meconstructionnews.com

T&FME, UD Trucks has busy launching its latest generation of trucks in the market. This is providing UD Trucks’ MEENA head an opportunity to test how fleets are reacting to a dynamic market. “With the MEENA region becoming an increasingly evolving market along with accelerated growth, both challenges and opportunities arise. For example, we are seeing increased pressure on customers in terms of costs, regulations and requirements. This is caused by numerous factors, such as the inflation of commodities and raw material, as well as an increase in manufacturing costs,” Hedna tells T&FME, “With regards to the future, and the commercial vehicles’ electrification being the top item on manufacturers’ agendas, along with their objectives to meet environmental, social and governance (ESG) criteria, we are seeing a tangible movement towards electrification in light- and mediumduty vehicles in the mid-long term. However, there is still more progress needed for heavy-duty trucks.” “One clear trend in the region is

the clear customer demand for truck rental and leasing. The level of flexibility these arrangements offer allows our customers to switch from CapEx to OpEx business models, allowing for easier budget planning and removing the financial liability of ownership. Another customer trend is the increased dependence on dealers for repair and maintenance, which in turn increases the acceptance of service contracts. This again means easier budgeting for customers and allows them to focus on their core business, rather than the complexities and burdens of fleet maintenance.” As a leading manufacturer of chassisrelated systems and components primarily for trailers and semi-trailers, but also for trucks and buses, SAF-HOLLAND SE is focussed on understanding how its product range comprising axle and suspension systems, fifth wheels, kingpins and landing gear (marketed under the brands SAF, Holland, Neway, KLL, V.ORLANDI, TrailerMaster (Telematic) and York) are going to be utilised by fleets going forwards from now on.

“From our perspective the future of transportation and mobility in the Middle East region will be very much dependent on the road regulations and fleet capabilities,” says Jean Khoury. “Regulations are the main driver for putting the innovation on the road such as safety, design, sustainability (pollution, recycled material, less consumption, less CO2 emission), digitalisation, autonomous driving, and electrification. As of now, the fleets in the region are not yet ready for such an investment. The transition of mentality and knowledge in the transportation world into the Middle East region will take more time than in other more industrialied regions.” To Khoury, the main limitation to the market will be a lack of knowledge among fleets when it comes to understanding the difference new technology could make to their businesses. “The key disruption technology is the ‘unknowledge of technologies’ of the fleet owners,” he explains, adding that: “The telematics and the electrification of the power units in the

AUGUST 2022 17

FUTURE OF TRANSPORTATION

1. DO YOU OWN OR WOULD YOU EVER CONSIDER OWNING AN ELECTRIC VEHICLE?

Yes – 72%

No – 28%

trucks and the trailers are the trendy drivers nowadays.but telematics is important to keep the fleet in motion; integrating smart distribution centres and ways to reduce fuel consumption by increasing the speed of deliveries.” Hans Wising suggests the focus must be on clean ways of generating fuel to supply the market, particularly to maximise the huge potential of hydrogen, another area of large investment by governments: “The development of the “clean” sustainable fuel as well as the hydrogen powered engines are significant players in this case. Hydrogen could be the future fuel in this hot region since it can be produced in a very environmentally friendly and sustainable way in the region using solar energy.”

2. ARE YOU CONSIDERING PURCHASING AN ELECTRIC VEHICLE FOR YOUR BUSINESS IN THE NEXT TWO YEARS?

Yes – 57%

3. ARE YOU CONSIDERING PURCHASING AN ELECTRIC VEHICLE FOR YOUR BUSINESS IN THE NEXT FIVE YEARS?

No – 43%

Yes – 71%

Bridgestone’s regional head Stefano Sanchini argues that sustainable development is a key enabler in a “tremendous transformation” in the mobility sector. The brand is currently seeking to establish a coalition of diverse groups of stakeholders with varied groups, he adds, including tyre manufacturers, carbon black suppliers, pyrolysis partners and emerging technology start-ups. “This will help us progress in our endeavours and increase our supply of recovered carbon black,” he explains. “The technology in the automobile industry is drastically modernising and with it so is the tyre technology. Tyre manufactures are facing challenges with new kinds of vehicles coming into the market, and manufacturers are devising innovative

4. ARE YOU CONSIDERING PURCHASING AN ELECTRIC VEHICLE FOR YOUR BUSINESS IN THE NEXT TEN YEARS?

No – 29%

designs and deeper material research to achieve green and sustainable products.” Bridgestone wants to support and promote start-ups to help them explore newer avenues in the mobility ecosystem: “We also aim at facilitating easy networking opportunities with a wide network of industry partners.” With operators able to make leaps in fuel savings by adopting an electrified fleet while accelerating the reduction of CO2 emissions, Bridgestone believes that EVs make achieving net zero emissions by 2050 possible and will drive the mobility sector towards a sustainable future. “We can clearly see the rapid adoption of EVs by many Middle Eastern countries with key investors heavily supporting the development of renewable energy

Yes – 85%

No – 15%

sources,” he remarks. “The UAE has become a prime example of innovation in the mobility sector with the introduction of 200 Tesla EVs in the taxi industry in Dubai. This is the first step by the Dubai government to develop green mobility solutions in accordance with the UAE vision of achieving 25% taxi trips through self-driving vehicles by 2030. This strategy devised by the Dubai government relies on the increasing footfalls of EV charging stations along with providing exciting benefits for EV drivers, which includes free charging and parking till the end of 2022. The Emirate of Sharjah has also greatly contributed to sustainable mobility through the introduction of 50 semi-electric Tesla trucks to its west management fleet in the year 2020.

5. RATE THESE FACTORS IN THEIR IMPORTANCE OF IF/WHEN YOU BUY AN ELECTRIC VEHICLE Slightly important

Important

Very important

Potential for new business

Ability to service and maintain

100% 80% 60% 40% 20%

Availability

18 AUGUST 2022

Resale price

Access to charging

Total cost of ownership

Vehicle performance

Financing

Safety features

meconstructionnews.com

The Future is now:

Into E-Mobility with SAF-HOLLAND

Heavy transportation traffic becomes electric, green and quiet with the recuperation trailer axle SAF TRAKr Every great E-Mobility concept begins with a first step: the new e-axle system from SAF-HOLLAND – the innovative technology for the electric transformation.

safholland.com

OF TH E VI SI T TH E W IN NE R M OB IL IT Y" CATE GO RY "F LE ET EE TS AWAR D 2022 OF TH E TR UC K & FL OR TATI ON: AT TH E IA A TR AN SP 6 HA LL H26, BO OT H A0 Y. AN IN HA NOVE R GE RM

SAF-HOLLAND Middle East FZE | Plot No: S20105, Jebel Ali Free Zone -South | PO-Box: 261743, Dubai -UAE

FUTURE OF TRANSPORTATION

6. WHAT IS THE BEST APPROACH TO BEAT RISING FUEL COSTS? Good approach

Better approach

Best approach

100% 80% 60% 40% 20%

Better driver training

Purchasing more fuelefficient vehicles

They have furthered the benefits for EV drivers with free charging till 2025.” “The Saudi Arabian Standards Organisation (SASO) has also been planning to stipulate regulations for EV usage and made an announcement that 5 per cent parking spaces will be assigned only to EVs. This reflects on Saudi Arabi’s commitment to decrease its carbon footprint and conserve its energy resources.” According to Sanchini, the ongoing transition in the automobile technology shows potential of a next big disruption that would be brought about by technologists. In current times, ‘computing power’ and ‘connectivity’ is just as important as ‘horsepower’, he says. “We believe that the future holds a

7. WOULD YOU CONSIDER A HYDROGEN FUEL CELL VEHICLE FOR YOUR BUSINESS IN THE NEXT 10 YEARS?

Yes – 57%

20 AUGUST 2022

No – 43%

Investing in new tech solutions

Changing service programmes

Switching to an on- Investing in electric/ demand fuel supplier CNG vehicles

very different face for the automobile industry with new and innovative technologies that are different from that of today. Transport has become an integral part of our lives and will remain the same in the future. The only factor that could go through a change is our interaction techniques with automotive products. “Electric, autonomous, shared and connected (CASE) vehicles will revolutionise the future of the automotive industry, with its highly configurable and evolving platform. Vehicles in the future will be continuously upgraded with modern features, rather than only developing on a model basis. A new ecosystem is expected to be created with suppliers and OEMs joining hands with technology partners to further

devise new business models. With these developments, the entire value chain will face a major disruption with new laws being regulated in terms of safety, cyber security and data privacy.” He adds: “The demand will not be the only reason behind the change in customer-vehicle interactions, as technology choices made by the manufacturer will also contribute to the transition. Newer and better business models will make an impact in decision making of customers as they will have choices on new types of ownership based on economic and sustainable viability. “We can see a constant change in customer’s digital experience along with advancement in technology. OEMs are ensuring seamless interaction between

8. HOW MUCH IS THE RISE IN FUEL COSTS A CONCERN FOR THE PROFITABILITY OF YOUR BUSINESS?

9. WHAT DO YOU THINK WILL BE THE MOST POPULAR RENEWABLE FUEL/POWER FOR URBAN DELIVERY SECTOR BY 2030?

It is a major concern – 29% It is a concern – 43% It is a minor concern – 28%

Yes – 85%

No – 15%

Selecting a new brand of tyre

devices and applications in a varied smart environment. Customers that are digital savvy expect a curated and flexible experience despite of the brief interaction time with service providers.” One fleet willing to place itself at the vanguard of new ways of powering its fleet is DSV. COO Mohammad Jabar predicts that the first electrified fleet will be in the market sooner rather than later. “We are always looking for potential partners to see what can be done differently and not just order what’s on the shelf,” he says, adding that the company has worked with Daimler to add cutting edge robotics technology into its latest truck-mounted crane unit. “Now we can be different, unique and more cost-effective.”

10. WHAT DO YOU THINK WILL BE THE MOST POPULAR RENEWABLE FUEL/POWER FOR THE LONG HAUL AND T&L SECTOR BY 2030?

Yes – 29%

No – 71%

meconstructionnews.com

FEATURE

“OEMS MUST

INTERACT WITH CUSTOMERS”

It’s time to shift focus from selling cars to servicing drivers, writes Matthias Von Alte, VP Strategy Lead at Publicis Conseil in Paris, France

et’s start a conversation. The nature of the car industry has changed dramatically. Drivers are demanding far greater levels of flexibility and convenience. The brand and the vehicle itself are becoming less important, and OEM customer loyalty is won or lost in every interaction. In fact, today’s consumers are unforgiving when it comes to poor customer experience: 72 percent saying that they are likely to switch companies after just one bad experience. Some OEMs are evolving their offering from selling new or used cars to mobility services, perhaps also partnering with third party platforms. At the same time, new players 22 AUGUST 2022

such as the tech giants Google, Amazon and Baidu, are quickly entering the value chain. For example, Honda is rolling out vehicles with Google’s embedded Android Automotive OS, which includes Google’s voice-activated Assistant, Google Maps, and other automotive-approved Android apps. The 2022 Consumer Electronics Showcase (CES) conference highlighted the buzz around mobility innovation. Japanese electronics giant Sony offered attendees a glimpse of its second concept car, the Vision S EV, strongly hinting at creating and selling vehicles after forming its Sony Mobility subsidiary. The Bosch Group, known for its power tools and home appliances, invests three billion euros every year in the

72% of surveyed consumers are likely to switch companies after just one bad customer experience

development of new codes for the automotive sector. The company highlighted its software development activities at the conference, many of which already equip the on-board control units supplied to vehicle manufacturers. New ways of interacting with customers are coming up and it is not only about selling the car but a lifetime of services, too. OEMs must recognize that driver experience isn’t only about car ownership, but also about the interactions drivers have with the brand. These interactions range from the physical to the digital and the emerging blending of both throughout the customer journey. Car brands are represented at the dealership, in the call center, during pre-sales, sales and post sales. On the digital side, interactions go meconstructionnews.com

FEATURE

beyond the OEM website and e-commerce platform; customers are interacting with the brand via live chat, email, live video, or web page. Social media is also influential in the way customers perceive interactions with an OEM product or service. This perception of the customer amplifies their brand sentiment across the web, whether good or bad. To keep a positive brand sentiment, OEMs need to address rapidly evolving customer expectations stepping away from just pre-sales and sales to harnessing customer lifetime value – the entire end-toend ownership period of the customer across all channels, both in-person and digital. Other industries are far ahead of the automotive sector when it comes to facilitating lifetime customer value. For example, Amazon’s customer retention is through the roof year over year. Amazon Prime members in the U.S. have a 93 percent retention rate after the first year and 98 percent after two years. How did Amazon achieve this dream? There are many aspects to Amazon’s interface, customer experience and marketing that can serve to boost and improve customer retention in the automotive industry. From creating a sense of urgency and fear of missing out to offering free shipping, returns and perks for loyal customers, Amazon has managed to tap sensitive touchpoints with customers that drive a successful and high retention rate. Examples such as Amazon are driving a need for change in automotive because customers who enjoy positive experiences in other industries with other products, are expecting a similar offering from the auto sector. Some OEMs are reimagining the future: Hyundai is creating a new vision of a car as simply a utilitarian structure that gets people from A to B. Instead, the content of a car can be useful to the way people live their lives. For Hyundai, the future electric vehicle is about unlocking the potential of travel time, enabling drivers to do more than sit behind the wheel – and to sightsee or shop. The brand is using technology and smart modular design so that passing places of interest, such as monuments or restaurants, appear tagged with information to drivers and passengers.

Services are a great opportunity for interactions. Today, the definition of services in the automotive sector revolves around after sales services. This kind of service will be enhanced by mobility service (mostly payment), connected devices and payment and non-payment services. But in future, OEMs must shape services along the entire value chain (pre-sales, sales, post sales, usage period of services, ownership period), as well as paid and non-paid services. To achieve this, companies need an extended omnichannel integrated service perspective to continually create value. Investing in quality value-added services will help manufacturers build lifetime bonds, generate more revenue

To keep a positive brand sentiment, OEMs need to address rapidly evolving customer expectations”

Automotive market growth has slowed. OEMs are competing for customers by investing in solutions such as customer data platforms, CRM systems, websites, apps, data lakes and machine learning. But what will set one OEM apart from the other in the future? meconstructionnews.com

What are the steps towards building a loyal customer base?

As interactions grow, it’s becoming increasingly important to keep the customer in the brand’s ecosystem. Customers are more likely to jump ship in the future if they experience more convenient, faster and better interactions with a different brand. OEMs must therefore continually develop and be reactive to customer needs, offering products and services that are useful to them.

FUTURE FAILURE: FIVE PREDICTIONS THAT WERE WAY OFF THE MOBILITY MARK 1825 - THE SPEED OF LIGHT (CARRIAGES)

nature have been introduced” - Scientific American,

“What can be more palpably absurd than the

January, 1909

prospect held out of locomotives traveling twice as fast as stagecoaches” - The Quarterly Review,

1920 – NO SPACE FOR SPACE

March, 1825

“A rocket will never be able to leave the Earth’s

1904 – YOUR BRAIN WON’T KEEP UP

1920…. Decades later the newspaper published a

“It remains to be proved how fast the brain is

correction after Neil Armstrong set foot on the moon.

capable of traveling” - Physician as quoted in The Services as opportunity for interactions

opportunities and capture customer data. When it comes to interactions, dealerships once had the most valuable touchpoint with customers. In fact, in the Automotive Customer Report 2021, 67 percent of survey respondents cited the traditional dealership as their preferred place to purchase. Maintenance and repair services provide dealers with an additional, pivotal role. But this point of automotive purchase is no longer guaranteed. Car buyers are increasingly comfortable buying through digital channels or directly from the manufacturer. That all-important test drive is losing some importance to virtual test drives, or in many cases, no test drive at all. Providing value-added services remains an opportunity for dealerships. Despite growing demand for online services and greater interaction directly with the manufacturer, at present dealerships still maintain an invaluable ability to offer “face time”, bridging both online and offline worlds, which enables dealerships to grow their understanding of their customer base, while at the same time build loyalty by sharing expertise of emerging mobility technologies.

New York Times, 1904

1909 - CARS REACH THEIR SPEED LIMIT

atmosphere,” wrote a New York Times columnist in

1989 – GREAT SCOT! FLYING DELOREANS IN 2015 “Most of the traffic seemed to have relocated itself overhead. Cars, some of which looked old enough

“That the automobile has practically reached the

to come from 1985, or even before, briskly flew

limit of its development is suggested by the fact that

back and forth across the air lanes” - Back to the

during the past year no improvements of a radical

Future Part II by Craig Shaw Gardner

AUGUST 2022 23

FUTURE OF TRANSPORTATION

SHARED MOBILITY 2022: 5 TRENDS SHAPING THE INDUSTRY The oncoming wave of new technology will change vehicle ownership and will drive the market for shared mobility, says Invers

1. VEHICLE DATA GAINS RELEVANCE Data generated by vehicles is being used to enable autonomous driving, control infotainment and car comfort features, plan maintenance and analyse trips. This is not new; applications such as car sharing have been accessing vehicle data for some time. However, since this data can be easily stored and pulled from the cloud, questions around its use and ownership are increasingly attracting public interest. Current initiatives such as the EU’s Data Governance Act aim to regulate data sharing by private actors. At the same time, innovative solutions show how mobility can be improved through intelligent data use. For example, trip analyses can be used to reward environmentally friendly driving. Sharing applications enable mobility service providers to get greater use out of their fleets. Efficient vehicle life-cycle management based on specific usage data can further optimize resource utilisation.

24 AUGUST 2022

2. CAR SUBSCRIPTIONS ATTRACT ADDITIONAL MARKET PLAYERS

3. MICROCARS EXPERIENCE A LITMUS TEST

4. CAMPERVAN SHARING GROWS AND GOES DIGITAL

Car subscriptions in particular offer a convenient alternative to car ownership. Market players from various segments have discovered their potential for themselves. These include vehicle manufacturers such as VW; the ID.3 has been available on a subscription basis in Germany since September 2021. In addition, traditional rental providers are also entering the business. Europcar, for example, has announced that it will launch a subscription service in Norway. Also, car subscription startups continue to grow significantly; Munic-based Finn, for example, was able to raise 500 million Euros in December 2021 and continues to expand. The Chinese manufacturer Geely even offers a vehicle model under the Lynk&Co brand that is available exclusively in the subscription model.

Twizy, Microlino, City Transformer, Rocks-e – microcars are currently experiencing a revival. Unlike regular cars, they have been developed solely for urban mobility: such as the slower pace of city traffic with a level of comfort comparable to that of a car, while being lighter and less expensive. They combine the parking advantages of a two-wheeler with the transport possibilities of a car. As electric vehicles, they also promise sustainable, inner-city mobility, a plus from the perspective of urban and transportation planners who have set Sustainable Urban Mobility (SUM) as their goal. Lower acquisition costs compared to bigger electric cars also make them attractive to sharing operators. There seems to be a favorable opportunity here The exciting question for 2022 is: will microcars increase their share in the urban mobility mix?

Relaxed vacations in pandemic times? Many travel fans discovered RV vacations for themselves last year. According to a study by the U.S. industry association Go RVing, the number of RV travelers will rise from 56 million in 2021 to 65 million for the coming year. The reason for this is not only the pandemicrelated desire to get away, but also trends spurred by the pandemic toward remote work, traveling in small groups, and vacationing in one’s own country. To facilitate this, rental companies want to offer their customers a convenient and fully digitized booking and takeover process. Therefore, the campervan is going digital; it can be booked online and picked up using a smartphone.

5. CARGO BIKES INSPIRE BIKE SHARING Cargo bikes relieve the burden on cities, contribute to a change in traffic patterns and are currently developing into a lucrative business model. The market is experiencing a real boom, and the variety and size of the offerings are growing. The current study “European cargo bike industry survey results 2021” by the City Changer Cargo Bike project took a close look at the 38 most important providers in the European market and forecast growth of around 66% for 2021. London started testing cargo bike sharing last year. In addition, logistics firm Stuart Delivery and cargo bike maker Vok Bikes have plans to launch a cargo bike sharing service in the city. According to industry association cargobike. jetzt, there are currently 150 providers of cargo bike sharing in Germany. It’s becoming a very dynamic market that is further spreading the idea of shared mobility.

meconstructionnews.com

CMY

FUTURE OF TRANSPORTATION

THE FUTURE

NOW.

T&FME looks at the 20 most innovative and influential OEMs creating tomorrow’s transportation today 26 AUGUST 2022

meconstructionnews.com

FUTURE OF TRANSPORTATION

AUDI Audi wants to use a new era in car development to push itself into the forefront of all things electric and – as proven by the e-tron GT quattro – it certainly seems to be on the right track. The 2WD e-tron GT’s launch has helped catapult sales in the region with Carsten Bender, managing director of Audi ME saying its uptick here is helped by the brand’s journey towards electrification. Having started in 2020, by 2026 it will have more than 20 all-electric models in the region and the brand is investing in several initiatives focusing on the development of a high-performance charging infrastructure in order to contribute to EV readiness in the region, including working with the UAE government to develop charging infrastructure: “We look forward through to developing solutions that will support EV customers in the UAE based around the latest technologies and charging solutions such as the Audi Charge Hub.”

BOSCH Bosch has stolen a march on the big OEM competition in the mobility space, largely because it had to with electric and hydrogen development meaning huge investment by OEMs which could potentially (however unlikely) squeeze it out of the market. To that end it has created a dizzying array of hardware for vehicles as well as software solutions that use data from the vehicle to improve performance and connectivity. Its mobility solutions business is also investing 500 million euros into green hydrogen as part of a 3 billion euro fund for climate neutral technology. “We shape a new era of mobility - sustainable, safe and exciting,” says Bosch chairman Dr. Stefan Hartung.

BRIDGESTONE Bridgestone wants to move beyond just tyres, providing holistic Mobility Solutions. These solutions include smart sensing tyres that capture and transmit critical data such as tread wear; road and environmental conditions. Stefano Sanchini, regional managing director, Bridgestone MEA: “While it is an honor to be recognized as one of the ‘Top 20 Innovative Manufacturers,’ it is even greater to be able to collaborate with the world’s leading minds to shape a more sustainable future and invest in the mobility ecosystem. We push the limits of engineering to create cutting-edge solutions that are created in sustainable ways, while providing reliable and eco-friendly performance. The tyre industry is incredibly innovative and is committed to reducing our impact on the environment. Through strategic partnerships and cooperative efforts between businesses and innovators, the industry has reached new heights in its quest for sustainable mobility. As a result, we hope to accomplish our objectives more quickly and commit to our long-term sustainability goals, while also fostering effective partnerships across the industry.”

CONTINENTAL Like Bridgestone, Continental no longer considers itself as a mere seller of rubber. The last decade saw it introduce a series of data driven solutions like ContiPressure Check to make driving safer and more efficient but it is planning to do more and embed itself in the next generation of smart cities and infrastructure. Last year the German manufacturer tested the Futuricum, a 19-ton truck equipped with the largest truck battery in Europe, which allows a range of up to 760 kilometres without freight. “As with all electric drives, the tyres for the Futuricum truck are exposed to higher torque during start off and acceleration,” explains Hinnerk Kaiser, head of Tyre Development Bus and Truck Tyres at Continental. “At the same time, the weight and weight distribution of the tractor are increased by the particularly powerful battery. Therefore, the tyres must not only have a low rolling resistance, but also withstand heavier loads than tyres for comparable vehicles with internal combustion engines. At the same time, they should last just as long and meet the same safety requirements as truck tyres for conventional drives.”

meconstructionnews.com

AUGUST 2022 27

FUTURE OF TRANSPORTATION

HYUNDAI

DAIMLER Always at the cutting edge of vehicle design, Daimler set a radical new agenda for the future of its trucks and vehicles at IAA 2016 and has subsequently began the roll-out of electrified versions of its ranges. Fuso is arguably the world’s leading producer of commercial electric vehicles through the eCanter but the Mercedes-Benz badged vehicles are quickly stacking up behind it, led by the eVito and superlative eSprinter. Following the splitting up of its mobility efforts, the recently created Daimler Mobility is built to be a leading provider of financial services, fleet management systems, and mobility solutions. With five million customers in 39 markets, it is focused on supporting the sale of luxury cars and premium vans, as well as actively helping customers switch to electric vehicles by offering leasing and financing products for all of the electric vehicles from Mercedes-Benz. “The clear focus on Mercedes-Benz cars and vans, which gives us the opportunity to continue our success story and become even more successful. Through this focus we’re making sure that we can adapt quickly within a rapidly changing environment. That way we’ll continue to be our customers’ first choice when it comes to mobility, financing and insurance services as well as the fleet business,” says Franz Reiner, CEO, Daimler Mobility.

Hyundai has one of the broadest and forward-looking strategies when it comes to pushing for more sustainable transportation. With the Korean OEM exploring the use of the IoT, hydrogen power, vehicle autonomy it is producing an array of smart mobility technologies. And in the Urban Air Mobility (UAM) it is promising a future that connects the sky and ground. It also wants to create robotic Purpose Built Vehicles (PBV) for public transport and the Hub (Mobility Transit Base), a futuristic base to house and coordinate logistics and transport. “With new trends such as autonomous vehicles and shared mobility in the coming years as well as the surge of electric vehicles, travelling from point A to B will no longer be ordinary. It will have wideranging beneficial effects for not just the consumers but for also cities and towns,” says region VP Bang Sun Jeong.

FORD Europe and Turkey are proving to be a major focus Ford’s push into an electric future. Starting in 2023, it will begin production of an all-new electric passenger vehicle, a medium-sized crossover, built in Cologne with a second electric vehicle added to the Cologne production line-up in 2024. In addition, Ford’s top-selling passenger vehicle in Europe, the Ford Puma, will be available as an electric version made in Craiova, Romania, starting in 2024. Ford has turned to its Turkish commercial vehicle specialist Otosan to revamp the iconic Transit range with four new electric models – the all-new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024. “Our march toward an allelectric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe,” said Stuart Rowley, chair, Ford of Europe. “It’s also about the pressing need for greater care of our planet, making a positive contribution to society and reducing emissions in line with the Paris Climate Agreement.”

GENERAL MOTORS GM Africa and Middle East’s goal is to deliver the best and broadest range of EVs in the region across its Chevrolet, GMC, and Cadillac brands – with an EV for every customer and every wallet, from trucks and affordable sedans, to luxury vehicles and high-performance machines. GM’s EV leadership is driven by its world-leading modular propulsion system and a highly flexible, third-generation global EV platform powered by Ultium batteries. GM’s Ultium-based EVs, when produced, will be capable of 0 to 100km/h acceleration in approximately three seconds, along with a driving range of more than 600 kilometers on a single charge, depending on the vehicle with Emirates Post Group set to use the system as part of a deal with mobility subsidary BrightDrop. Luay Al Shurafa, president and managing director

ULTIUM SOLUTION 1-CHARGE 600KM

28 AUGUST 2022

of GM for Africa and the Middle East, said: “The Middle East is one of GM’s most important international markets and a region of the world known for early adoption of technology. The future is now, and GM’s plans align with ambitious and visionary regional government goals to reach net zero.”

meconstructionnews.com

FUTURE OF TRANSPORTATION

DREAM SPEED 278KM/H TOP SPEED

LUCID AIR From out of almost thin air, Lucid Air has emerged with providing a blueprint in the luxury segment in terms of supporting affordable performance electric vehicles – and it wants to keep its high

IVECO For IVECO, sustainable mobility, which respects the environment, society and local communities, is principally based on four components (CO2 emission reductions, pollutant reductions, noise reductions, and improved road safety) which ensures the commerical vehicle player has the best technological solutions adopted in the early stages of development and production of its vehicles. In the field of alternative drives, it was one of the first European manufacturers to develop and internationally market an entire range of commercial vehicles for the transport of goods and passengers using natural gas. These vehicles are today already compatible with biomethane, one of the energy resources with the best potential in terms of reducing CO2 emissions. With the Italyheadquarted company’s recently agreeing to partner with fellow Italian firm Eni, IVECO also wants to create an integrated sustainable mobility platform for commercial fleets by offering innovative vehicles powered by biofuels and sustainable energy vectors – such as HVO (Hydrotreated Vegetable Oil) biofuel, biomethane, hydrogen and electricity – and the related infrastructure. “We are continuing on our path towards decarbonising freight mobility, using all the currently available options and pursuing every potential area of development,” commented Luca Sra, president Truck Business Unit, Iveco Group.

meconstructionnews.com

standards up in the region. The Saudi-backed firm is also setting new standards with its advanced luxury EVs, and recently announced the limited-run Lucid Air Dream Edition will be produced in two distinct versions – the Dream Edition Performance and the Dream Edition Range – each highlighting a different facet of this exceptional electric luxury sedan. Supply issues may have slowed its progress into the market but it is certainly a disrupter to watch.

NISSAN

MAN TRUCK & BUS MAN can pull on huge reserves of talent and expertise when it comes to developing new trucks, engines and systems. Both its truck and bus arms benefit from a widerange of technologies including electric drives. MAN has focused on allying its core strength of safe and heavy duty trucks and silky coach platforms with electric alternatives. The Truck division at MAN is now accelerating on the path to electric mobility. While the battery-powered MAN Lion’s City E urban bus and the fullyelectric MAN eTGE van are already strongly represented in the market as series vehicles, the first e-truck – the MAN eTGM – has started to be delivered in small series to customers throughout Europe. Its MAN eMobility Centre has been created on the the basis for this leading commercial vehicle manufacturer to produce e-trucks in large industrial quantities.

With the Leaf, Nissan proved to be an early electric mover in the Middle East market. It has continued to strengthen its model lineup with a suite of safety and connectivity features, factoring in the evolving needs and wants of its customers. Enhancing its offering of driver assistance and convenience features, Nissan Intelligent Mobility (NIM) delivers on a promise of safer and more connected travel. Combining the three pillars of Intelligent Driving, Intelligent Power, and Intelligent Integration, ongoing innovations in NIM play a vital role in aiding the brand achieve its goal of virtually zero fatalities involving Nissan vehicles across the globe. The ultimate expression of Nissan Intelligent Mobility and autonomous driving is evident in the new Nissan Ariya, which made its Middle East debut at Expo 2020 Dubai. ProPILOT, premiered in the region on the 2021 Nissan Altima, has been touted as revolutionising driving while offering customers peace of mind. Combining Nissan’s Intelligent Cruise Control system with Steering Assist technologies, ProPILOT automatically increases or decreases speed to maintain a set distance from the car ahead.

AUGUST 2022 29

FUTURE OF TRANSPORTATION

LONG DISTANCE 480 KM RANGE

POLESTAR Polestar, the Swedish electric performance car company, entered the market early this year via Al Futtaim in the UAE. The relatively new name belies a deft and determined ambition for the region and its next car, the Polestar 3 electric performance SUV, is expected to join the award-winning Polestar 2 later this year. Launched internationally in 2020, Polestar 2 has won several industry accolades and high praise from customers, fans and thought leaders, being hailed in the media as one of the most complete electric cars with superb build quality and futureproof design that seamlessly integrates its sustainable credentials into a world-class driving and ownership experience. Mohamed Kassem, general manager for Polestar in the UAE, says: “Polestar 2 is the car that the future promised.”

RENAULT TRUCKS Renault is taking a very practical approach to the adoption of electric variants of its trucks in Europe and is offering fleets there step-by-step help, including the project management of charging infrastructure in hubs and optimisation of routes advice. Its helped make it the number one supplier of electric trucks in Europe and bodes well for a company that has been known for its robustness and customer-centric in the past and wants to see how it bring its loyal base with it. The firm started investing in e-mobility ten years ago, convinced that it was the answer to the problem of air quality and noise pollution in urban areas. Today, it is the first to mass-produce fully-electric trucks. Its E-Tech range extends from 3.1t to 26t and meets all urban requirements from delivery and distribution of goods to waste collection. Renault Trucks’ steadily expanding range of electric trucks and its sales volumes reflect its rapid progress: in 2021, 249 electric trucks were delivered and 613 were ordered. It is now stepping up its strategy and increasing its ambitions and plans for 50% of its sales to be electric by 2030. By 2040, 100% of the vehicles sold will be fossil free.

30 AUGUST 2022

TESLA The original electric disruptor to the car market has been quiet on its truck alternatives in recent years but it is still committed to getting its hauler, the Semi out into the market. Of course, beyond the electric drivelines, the big promise of autonomy is both the US firm’s strength and weakness. Tesla’s vehicles are equipped with autopilots which allow the car to steer, accelerate and brake automatically. The Tesla fleet is available with the tech that allows the vehicles to auto-park and undertake automatic lane changes. However, it hasn’t been without its issues and incidences where drivers have overestimated the capability of its Level 2 autonomous vehicles. It remains the badge most identified with the future, and you can hope it will come good on its promise to use technology to make professional driving safer and more efficient. Hopefully it won’t be long before we can all tweet or play Sonic while we work (and not drive).

SCANIA Few companies, even within the Traton camp, can match Scania’s work in the field of alternatives to fossil fuels in a huge variety of transport applications. Want hydrogen, check. Interested in electric, check. Fancy a hybrid, well, check. Scania wants to drive the transition to zero emission vehicles and is already series-producing fully electric vehicles and actively testing heavier duty electric trucks in customer operations. This transformation is being enabled by rapid improvements in battery technology, and electric trucks will soon have the range necessary for widespread use in long-haul applications. Early this year, it also revealed it is working on a project to develop an initial 20 fuel cell electric trucks with Cummins Inc, that will run on green hydrogen in HyTrucks project. “Our strategic work is dependent on understanding our impact, including the risks and opportunities along the life cycle, with the ambition of linking targets and actions with science. We have identified three key sustainability areas that need to permeate all parts of our business: people sustainability, circular business and decarbonisation. Each of these areas are connected and dependent upon each other,” says the company.

meconstructionnews.com

FUTURE OF TRANSPORTATION

VOLTA TRUCKS

UD TRUCKS UD Trucks has been tackling the problems of driver recruitment and retention for years in its native Japanese market and sees the solution through smart logistics to make the industry more attractive and profitable. Its Fujin & Raijin Vision 2030 focuses on the key areas of automation and electromobility to address the challenges of a rapidlychanging world. True to UD Trucks’ vision to provide the trucks the world needs today, the roadmap aimed to offer commercialised solutions for select automation and electromobility applications from 2020, with a view toward full-fledged commercialisation by 2030. By then, demand for parcel delivery is expected to grow 50% compared to 2014. To meet this demand, the logistics industry faces significant challenges, including a responsibility to reduce CO2 emissions, the growing scale of online commerce, and driver shortages. UD Trucks believes that automation and electromobility are key to overcoming these challenges: “We are convinced that the world needs Smart Logistics,” said then chairman Joachim Rosenberg at the roadmap’s launch in 2018. He now heads Volvo Energy – but more on that later.

One of a batch of new names in the commercial vehicles sector that are trying to raise funding to get into the market, it has at least has got to the stage of getting its trucks into customer hands. Its Volta Design has just completed a round of testing in France with feedback suggesting positive first experiences of the zerotailpipe emission medium-duty truck designed for urban logistics. Production Verification prototypes are being loaned to customers for extended periods later in 2022, enabling them to understand how full-electric medium-duty trucks will integrate into their operations. Production of the first customerspecification vehicles is still on track to start in early 2023. And sensibly the Swedish firm has placed former Agility head Essa Al-Saleh as its CEO to ensure its sales pitch is just right for a traditionally sceptical fleet market.

ZF Determined to prove that it is ready for a new era in transportation ZF has been assembling prototype vehicles that show-off its capabilities in trailers, axles, all electric drives and PTO systems in recent years. Autonomous driving is expected to become more widely established in the commercial vehicle sector as well as in urban passenger transport; and ZF can equip light and heavy vehicles with its AD system and thus transform them into automated machines. And ZF is also active in the developing People Mover market. ZF took over 100 percent of the Dutch company 2getthere, which has many years of experience with autonomous driving systems - as 14 million transported passengers and more than 100 million autonomously driven kilometers impressively attest. ZF is currently developing autonomous shuttles for the German cities of Friedrichshafen and Mannheim as part of the RABus project . And in the Rivium Business Park near Rotterdam, where the 2getthere autonomous shuttles have been in operation for years, they are being updated with the latest version. “Our vision is that autonomous mobility will improve traffic conditions in cities and reduce congestion and emissions,” said Torsten Gollewski, EVP, Autonomous Mobility Systems, ZF. A network of autonomous and electric shuttles can meaningfully supplement the existing public transport service in cities and efficiently link rural areas to cities.

VOLVO TRUCKS Volvo may have only formed its mobility arm Volvo Energy in 2021 but it has been working on autonomous systems, as well as electric and hydrogen drivelines for years. Today, it offers electric vehicles and machine ranges from city buses and trucks for waste management, construction and urban distribution to compact excavators and loaders. The roll-out of additional, electric vehicles and related services has continued at high pace and Volvo Trucks wants half of all trucks sold to be electric by 2030. With the creation of Volvo Energy it wants to provide batteries and charging across the industry. It is also carrying the Group’s responsibility for hydrogen infrastructure solutions for fuel cell electric vehicles. Collaborations with various business partners and actors across the ecosystem will be key. “There is a great and growing interest for EVs among our customers. This is very positive as it accelerates the transition towards more sustainable transport solutions. Our ambition is to offer the most competitive solutions when it comes to electrification. With Volvo Energy, we are taking a holistic view of the entire life cycle, which benefits both our customers’ business and society as a whole”, says Martin Lundstedt, President and CEO.

meconstructionnews.com

2030 EV TARGET 50% OF FLEET BY 2030 AUGUST 2022 31

FUTURE OF TRANSPORTATION

THE FUTURE OF

FLEET PLANNING

Shell’s ultra-efficiency or digital disruption report deserves to be hailed as the blueprint for planning your fleet’s future

ews of the rapid and far-reaching changes transforming the commercial fleet industry is hard to escape. In twenty years’ time, the commercial fleet is going to be almost completely unrecognisable to anyone working in the industry today. The need to transition to new fuels will create challenges and opportunities for fleet managers that are very different to those faced by the domestic vehicles industry. With batteries able to power large vehicles for long distance still in development, fleet managers will have to find the right mix of alternative fuels for their organisation’s needs. New vehicle types — including those running on new fuels 32 AUGUST 2022

as well as autonomous and semi-autonomous vehicles — will fundamentally change the mix of skills required of fleet managers and their teams. Disruptive technologies such as automated vehicles, ride-sharing, load sharing and over-the-air software and maintenance will also fundamentally alter the way we work. With their operating environment in constant flux, nearly half of fleet managers find it challenging to stay informed, with a need to gain support internally from business leaders and fleet drivers for new initiatives. As many as 40% say they struggle to stay informed, and 1 in 4 feel their bosses are resisting new technologies. Based on extensive interviews with 750 fleet managers, Shell has produced a guide to the trends that are shaping the fleet landscape and

53% of fleet managers expect to adopt new fuel types within the next five years

will continue to transform it for years to come. It contains the information you need to master the changes that are coming and maximise the opportunities they’ll bring with them. As the market shifts away from traditional fuels, no one can afford to stand still. Leave it too late to transition to new fuels and vehicle types, and you mayfind yourself burdened with the costand disruption of an unnecessarily rapid whole-fleet transition. Equally, a wholesale transition to a single type of alternative fuel is unlikely to be a good option for most company fleets. A range of new and innovative fuel types exists or is in development, each of which is best suited to different types of vehicles and use cases. Only by creating greater fuel meconstructionnews.com

FUTURE OF TRANSPORTATION

efficiency and adopting a mix of cleaner fuels can we, as a society, hope to decarbonise our increasingly energy hungry economies. By the same token, only with a range of fuels can fleet managers meet the needs of all users, from short-hop urban delivery drivers to long-haul heavy-goods hauliers. Shell’s Future of Fleet survey found that 53% of fleet managers expect to adopt new fuel types within the next five years. Asked which fuel types they would choose for their fleet if they had an entirely free hand, 64% fleet managers chose either electric or hybrid not only over other types of alternative fuel, but also in preference to diesel and petrol. The chances are you will need a wider range of vehicle types in your fleet than just electric. The exact mix of engine types you need for your fleet will depend on your specific requirements. The good news is that there is a technology for every use case, from light local deliveries to long-haul freight haulage. For more information on alternative fuels. By 2030, many cars will be fully autonomous under favourable conditions and, thereafter, fully autonomous under all conditions. This opens a range of interesting possibilities for fleet managers. Autonomous or semi-autonomous vehicles could be programmed to drive in platoons, with only the lead truck under direct human control. Given that platooning has been shown to improve fuel efficiency by around 4%, if applied globally,it will have huge financial and environmental benefits. Software-over-the-air technologies and improved telematics, will also allow the monitoring and maintenance of vehicles on the go, with repairs and servicing delivered via download or mobile service team, changing current models for management, maintenance and reliability of fleets. Meanwhile, adapting the concept of ride-hailing services like Uber could dramatically change the commercial sector. Companies could operate with ‘vehicle-less’ fleets, using technology to call for deliveries on-demand and combine loads with other businesses for greater efficiency. This ‘asset-light’ model will remove many of the capital and operational costs of purchasing and maintaining vehicles. These changes present both opportunities and challenges. Successful early adopters will enjoy a competitive advantage. The potential for improving fuel efficiency and for reducing downtime is huge, given the greater visibility and control the development of intelligent vehicles will offer. For organisations and for fleet managers, they represent a Darwinian meconstructionnews.com

TEN WAYS TO PLAN FOR THE FUTURE 1. FUEL-EFFICIENCY

Encouraging more fuelefficient driving is one of the immediate priorities with 35% of Fleet Managers focusing on this area. Every extra 45kg you carry reduces fuel efficiency by up to 2%, so training on load management can make a difference. Using high quality motor oils, lubricants, replacing dirty or worn components and ensuring optimal tyre pressure can all lead to fuel-efficiency gains.

2. VIRTUAL AND AR TRAINING

With the emergence of autonomous and semiautonomous vehicles and new concepts such as platooning, using virtual and augmented reality simulations can be a good way to introduce these new approaches to drivers, gain their support and enhance their driving skills.

3. PERSONAL WELLBEING

A combination of wearables, telematics data and concierge tools can provide drivers with valuable information about their health, stress and driving performance as well as automating basic tasks to free up time. Ensuring everyone in the fleet understands how to use these tools can improve safety, wellbeing and efficiency.

4. UNDERSTANDING DATA ANALYTICS

Improving awareness of the available tools, how systems connect and how information can be used helps familiarise managers, drivers and senior executives with what is possible while also generating data to demonstrate the value of new fleet investments.

5. PREDICTIVE MODELLING Sophisticated tools are emerging that simulate and

predict how large numbers of vehicles will behave in different scenarios. This can be used to plan routes, optimise fuel and loads, preempt maintenance needs and test the hypothetical impact of new vehicle types or fuels.

6. REVIEWING ASSETS

A combination of technology and commercial models means that it may be possible to operate ‘virtual fleets’ as well as share vehicles, maintenance, fuelling infrastructure and loads.

7. RETHINKING CONTRACTS

One way of progressing alternative fuel types and technology can be to renegotiate what is provided as part of a fleet contract. For example, can new vehicles be provided with specific technology included or with an agreement around providing supporting infrastructure such as charging points?

8. THE POWER OF AGGREGATION

New models are emerging which aggregate a range of fleet services – from offering on-demand delivery through to fuel card services, discounts on replacement parts and servicing and wider business tools such as invoicing and payments.

9. COMMERCIALISING GREAT IDEAS

Many start-ups and newcomers have great solutions for our sector but need a means of funding, testing, distributing and scaling their innovations.

10. LEARNING TOGETHER

The pace of change makes it hard for even the largest players to guarantee what will come next. As a result, we are seeing many new collaborations between organisations.

pressure that will drive the evolution of fleets. Ultimately, the sector will emerge stronger, more efficient and more agile. But as with any process of evolution, there will be winners and losers. Are fleet managers ready?

The Shell survey of fleet managers asked what challenges were uppermost in their minds and how well prepared they felt to face them. The answers were illuminating. Almost four out of every 10 fleet managers in Europe expect just staying competitive to be a challenge soon. The three big changes respondents see coming are the adoption of new fuel types (53%), the introduction of new technologies (48%) and the advent of new vehicle types (47%). This is entirely consistent with other independent research and with the broader industry view. But surprisingly, over half of fleet managers say that they have experienced resistance to change either from drivers or from senior management. This suggests an environment in which fleet managers often don’t get the support they need to make the best decisions for their organisations. This is entirely regrettable, as it’s ultimately those organisations with inertia that will suffer from most. This makes it even more vital that fleet managers have the data and the evidence they need to make the business case for change now. To prepare themselves and their fleets for the challenges ahead, fleet managers need the institutional support necessary to shape and adapt their organisations to the new normal. Failure to do so, is preparing to fail. “The retail, entertainment and travel sectors have undergone radical disruption due to new technology, with new players like Amazon, Netflix and Expedia shaking up traditional industries. Until very recently, the commercial fleet sector has — except for incremental advances — remained relatively unchanged. Not for much longer,” says Katya Atanasova, VP, Shell Fleet Solutions. “A convergence of new technologies, services and greater connectivity is set to reshape the sector, requiring new skills as well as creating new industry players and business models. By 2040, the fleet industry could transform almost beyond recognition. Virtually all smaller vehicles are likely to be electric. Long-haul transport will transition to renewable and low-emission fuels. Many vehicles will be self-driving, with routine maintenance via software download and artificial intelligence enabling individual fleet vehicles to take themselves to an optimal location for refuelling and overnight parking – ready for their allotted tasks the following day. “ AUGUST 2022 33

FUTURE OF TRANSPORTATION

ONE WORLD,

MANY SOLUTIONS While the Middle East begins its mobility journey, the team at IAA, which returns in September, jots down progress around the rest of the world

n the like need to be driving sustainably: Under an EU Regulation, commercial vehicle manufacturers are required to reduce CO2 emissions on new vehicles by 30% by 2030. So alternatives are needed – and quickly! Up until now in Germany, for instance, only around 2% of trucks run on anything other than diesel or petrol. In many European countries, including Germany, truck manufacturers are benefiting here from policy strategies promoting batteryelectric powertrains. The Institute for Energy and Environmental Research Heidelberg (IFEU), in its latest comparative analysis of the potential of drive technologies for trucks, similarly found that electric-powered trucks could already be cheaper than “diesel” as early as 2025. By 2030, 34 AUGUST 2022

that means one in every three newly-sold trucks in Europe could already be battery-driven. In that regard, the assessment by the German Association of the Automotive Industry (VDA) could serve as a kind of blueprint for the development in the EU: In its position paper on the German commercial vehicle industry’s view of future drive technologies (“Positionspapier zu zukünftigen Antriebstechnologien aus Sicht der deutschen Nutzfahrzeugindustrie”), the VDA calls for an open-technology approach to achieve the climate goals – with a clear focus on e-mobility and hydrogen. Light duty commercial vehicles with a battery-electric powertrain are already available, and are increasingly being used for city-centre distribution transport. However, medium

The number of European diesel trucks could start to reduce in 2024”

duty commercial vehicles are similarly set to run on electric in regional and distribution transport. In order that, in future, heavy duty vehicles or buses are able to be powered purely by electricity for long-distance routes, a comprehensive charging infrastructure is required above all else, alongside further development of current battery technologies. The charging infrastructure for the transport of e-goods is being expanded worldwide. A demo charging park for electric truck customers is being built at the Mercedes-Benz Trucks site in Wörth am Rhein. For heavy-duty commercial vehicles on long-haul routes and for touring coaches, the VDA also considers hydrogen (H2) a key alternative to diesel. This assessment is in line with the German government’s meconstructionnews.com

FEATURE

“National Hydrogen Strategy”, which sees green hydrogen as relevant particularly for long-distance and heavy goods transport. When it comes to hydrogen power, they are a step ahead in Asia: For instance, as early as 2017 Japan was the first country anywhere to develop a national hydrogen strategy. In 2020, the world’s biggest production plant for green hydrogen was taken into service in Fukushima. And Japan is also pressing ahead with expanding the necessary infrastructure. By 2030, according to a forecast by the market research company Fuji Keizai, a total of 1,321 hydrogen fueling stations are set to be operating, capable of providing fuel for 621,000 cars. In Germany, there are barely 100 H2 fueling pumps currently. The Japan H2 Mobility consortium, to which the automotive manufacturer Toyota belongs, has been commissioned to expand the fueling station network. In 2017, Toyota presented the first series-manufactured version of the fuel-cell bus Sora. Together with the Toyota subsidiary Hino Motors, the Group is currently developing fuel cell trucks for the Japanese and North American market. The companies Toyota, Hino and Isuzu have announced production of a battery-electric low-floor bus for 2024, with a fuel cell spin-off from this set to be developed. In China, Toyota is also collaborating with Chinese companies on development of fuel cell trucks, in the joint venture United Fuel Cell Systems R&D. Hyundai is also active in the hydrogen trucks area. The automotive manufacturer from neighbouring South Korea supplied the world’s first series-manufactured heavy-duty commercial vehicle with a fuel cell electric powertrain in 2020 – the Xcient Fuel Cell. By 2025, a total of 1,600 units are set to be produced. China, too, is looking to H2 – and not just for commercial vehicles. Hydrogen and fuel cell applications are considered key future technologies, and attract state subsidies accordingly. Even today, according to now.GmbH, there are at least ten manufacturers for fuel cell buses, four for light-duty commercial vehicles and more than ten active fuel cell manufacturers and system integrators. And the latest sales figures from China also show that the trend is towards electrification: In 2021, sales of heavy-duty trucks with battery electric, plug-in hybrid and fuel cell powertrains rose, as reported by Bloomberg NEF. Of the heavy-duty trucks sold with an alternative drive technology, 62% were conventional battery-electric vehicles, 31% had swap-out batteries and 7% were using fuel cells. In the North American truck market, by contrast, there is no identifiable preference for meconstructionnews.com

2030 One in every three newly-sold trucks in Europe could be batterydriven by 2030

7% In 2021, China sales of heavy-duty trucks with fuel cell powertrains accounted for 7% of all sales

1,321 By 2030, a total of 1,321 hydrogen fueling stations are set to be operating in Japan, capable of providing fuel for 621,000 cars

any one type of powertrain. While the global market leader Daimler Truck is looking to both electric and hydrogen for its semitrailer trucks, Traton is clearly putting its trust in an electric future for the sector. Which technology will win out is likely to be determined by costs, given the modest profit margins in the transport business. Here, e-trucks still have their nose in front. However, that might change: Green hydrogen can be produced, transported, and stored in regions that are rich in sun and wind. At Daimler they are therefore confident that hydrogen can prospectively be traded at highly attractive prices. In the US, a country with long haulage routes, hydrogen trucks have an advantage over e-trucks by virtue of their greater range. In addition, driver downtimes are shorter there, which makes long charging times impossible. Together with investors such as Blackrock, Daimler is building a charging network for both battery and hydrogen vehicles. Alongside battery and hydrogen powertrains, natural gas also plays a potentially important role in the USA for the post-diesel era: The fact that this fossil fuel is an alternative to diesel, particularly in the USA and China, was a further finding from the 2019 study by the Boston Consulting Group. Here, liquid natural gas (LNG) is named as one of three forward-looking powertrains for the truck sector. Some companies have already been using the technology in the USA for years: The logistics company UPS, for example, has been using delivery vehicles powered by natural gas since 2018 – and it is continuing to purchase new LNG vehicles. UPS is also looking to use renewable natural gas (RNG) for this, obtained from waste from refuse dumps and dairy farms. South America is taking a different route: Here, e-fuels are increasingly being used as an alternative to diesel. Using synthetic fuels, on the one hand combustion engines can continue to be run, while on the other the existing filling station infrastructure can still be used in future. E-fuels can therefore be deployed immediately – even if the criticism of them is that their efficiency is well below that of e-cars. Regions where a lot of electricity can be produced from renewable sources such as wind and solar are the most appropriate for production of e-fuels: South America, the Near and Middle East, and North Africa. According to a study by the Fraunhofer Institute for Systems and Innovation Research (ISI), for instance, Morocco with its deserts could produce two to four% of the green electricity needed worldwide in order to use the Power-to-X (PtX) process to manufacture fuels such as hydrogen, methane, or ammonia almost climate-neutrally.

TOP TEN GLOBAL SIGNS OF DISRUPTIONS 1. By 2030, a million fuel cell vehicles, particularly cars, are set to be running on China’s roads

2. Germany’s powerful VDA organisation has called for an opentechnology approach to achieve the climate goals – with a clear focus on e-mobility and hydrogen

3. The Boston Consulting Group (BCG) considers it most likely that battery-electric powertrains will take comprehensive hold of Europe

4. Also by 2030, according to a 2019 study, up to 70% of the alternative - if charging infrastructure suitable for trucks is available

5. In Europe, the number of trucks running on diesel could start to reduce as early as 2024

6. In the “European Truck Market Outlook 2022” survey conducted by the international corporate consultants Bain & Company for Germany, France, UK and Spain: Just 30% of the 565 fleet managers interviewed are still planning to buy trucks with conventional diesel engines in three years’ time

7. As early as 2025, roughly one in every two trucks is set be equipped with an alternative powertrain – a mammoth task for the sector

8. In 2024, the first battery truck for long-haul transport is set to come to the US, and the first hydrogen truck in 2027

9. e-fuels are already and increasingly being used as an alternative to diesel in South America

10. There are set to be 1,300 fuel cell-powered buses and 14,600 forklifts operating in Japan by 2030.

AUGUST 2022 35

FUTURE OF TRANSPORTATION

QUANTRON: TAKING THEORY INTO PRACTICE

T&FME finds out how Haller Group’s mobility off-shoot is taking on the major OEMS

t has been barely half a decade since Tesla announced that it was entering the commercial vehicles market with its Tesla Semi, and since then there has been a steady flow of newcomers offering their vision of an electrified hauling future. Among them is German company Quantron which has recently being working hard to find investment for its plans to produce a range of trucks, buses and vans. The freshly carved landscape of the EV market is proving home to a raft of different brands and business models, all with their strengths and weaknesses. For instance, companies like Daimler or Renault can lean into their manufacturing knowhow but also have huge challenges to turn their huge plant and development operations into an emerging segment that is not without risk. Others 36 AUGUST 2022

like Volta or Tesla offer a fresh approach but not the established route to market and experience of their OEM competitors. Then you have a company like Quantron which sits somewhere between the two: an already established player in the maintenance and repair market with four factories across Europe and China, but not the vehicle production scale of most of its major competitors. While the name is relatively new to the market, the firm itself is a spin-off from Haller Group, a family-owned business with a history dating back 140 years. Today, it is best-known as a specialist in the maintenance and repair of transporters, trucks and buses but Quantron is an attempt to move deeper into the mobility space with new services but at the same time reconcile its future with a past that saw it play its part as an early pioneer of passenger and

Zero emissions is our main target and our main focus is electric batteries and hydrogen”

commercial vehicles production. At its head is the fifth generation owner Andreas Haller who has wisely decided to re-shape the business by bringing in financial restructuring and assets expert Klaus Schmitt as CEO to help drive investment while Pirelli veteran Pedro Navarro concentrates on expanding the core business of being automotive trading partner of tyres and an automotive supplier in the field of new technologies such as batteries and fuel cells. “I’m the fifth generation, so it’s a very traditional company,” Haller explained on the sidelines of the most recent IAA. “But we have much more experience than other companies we know. We have four factories in the world and 700 service partners; without aftersales support it’s not possible to sell products. Zero emissions is our main target and our main focus is electric batteries and hydrogen,” he meconstructionnews.com

FEATURE

continues. “We have unlimited possibilities.” Last month, the company showcased the latest line-up of its vehicles to the media and investors, including the QUANTRON QARGO 4 EV Light-Truck which offers a top operating range of up to 350 km based on a LFP battery from the world market leader CATL and a battery capacity of 81kW – making it ideal for providing sustainable deliveries for the last mile. The light transporter offers a a flexible wheelbase featuring 3.3 m of manoeuvrability and thus a very small turning radius, making it suitable for inner-city traffic. The performance of the environmentally-friendly transporter is also impressive with the operating range bolstered by a payload of 2,300 kg. The QARGO 4 joins the all-electric Q-Heavy truck QUANTRON QHD BEV 50-280, a 4x2 tractor unit based on the DAF CF Space Cab. The zero-emission vehicle also features the low-noise levels of its smaller counterpart but a reduced operating range of up to 220 km and a maximum engine performance of 350 kW. The 280 kWh battery is fully re-charged within 6.5 hours and can power a vehicle with a gross combined weight of 18 to 44 metric tons. Earlier this year, it also premiered its new 12m long electric bus called the CIZARIS. The new bus model will be launched as an all-electric version (CIZARIS 12 EV), followed in 2023 by a fuel cell drive (CIZARIS 12 H) that uses a largely identical powertrain: both two- and three-door models with a total of nine interior layouts are available. The low-floor character of the bus is made clear by the black contrasting center section, while the roof edge trim at the front and rear puts the emphasis on the battery technology, which is hidden there on the roof outside any crash areas. This allows the car to dispense with a conventional “aggregate tower” in the rear and thus offer a proud 24 to 35 seats – in total, there is room for 81 to 95 passengers depending on the battery package – significantly more than many competitors. The rear end with its large taillights, some of which are made of frosted glass or have a light-striped design. Like others in the C-EV segment, the company has recognised that this challenge facing the electrification of transportation is finding a way to make long-haul journeys as green as possible when last mile and short runs are able to charge almost constantly. To that end it has drafted in Canada-based Ballard Power Systems to produce its FC Move heavy duty hydrogen fuel cell power modules for its vehicles: “With Quantron we meconstructionnews.com

are bringing a platform of our most advanced fuel cell technology. Quantron has a great vision to reduce greenhouse gas emissions,” says Rob Campbell, Chief Customer Officer, Ballard Power System. “Vehicles contribute some 27% of these emissions in Europe; and is hence a key target market for quantron. It already is in the market with electric vehicles and can now extend their customer reach by adding in fuel cell power to increase vehicle range and duty cycle to maximise payload and enable rapid refueling all to ensure best in class value for zero emission vehicles.” Haller is keen to stress that the industry needs to avoid falling into two camps – electric versus hydrogen – if transporters are going to be confident in transitioning to low or zero carbon

With Quantron we are bringing a platform of our most advanced fuel cell technology”

operations.: “We are always talking black and white but it (fleet choice) is dependent on the range that we need,” he says. “I would say grey middle weight is the best way! But for us, the long distance is only possible with hydrogen and it is very important to have Ballard on our side.” To that end, many of its products will have an electric and a hydrogen version, and tie-ups with companies like Ballard – and a range matching diesel counterparts of its competitors – will enable the company to achieve its goal of becoming ‘Quantron 2.0’: “The 12m bus is a very unique design in the European market. The main topic now is scaleable production. It’s not possible to have 50 units this year and 200 next because the bus business is limited but they need electric versions.”

SWITCHING TO ELECTRIC Quantron is developing electric and hydrogen versions of all its vehicles.

THE OLD TO THE NEW In order to decarbonise freight transport as quickly as possible, Quantron AG is converting existing and used vehicles from diesel technology to emission-free electric drives. This gives them a second, now environmentallyfriendly service life, so to speak, and thus makes a fundamental contribution to climate protection and resource management in the transport sector.

Prof Dr-Ing. Raimund Klinkner, chairman of the Executive Committee of the German Transport Forum (DVF), acknowledged this commitment at a joint press conference at the end of last year. “Quantron AG’s repowering approach of converting diesel-powered commercial vehicles to emission-free drive technologies allows truck and bus transportation to be switched over to climate-neutral

drives more quickly”. “Time is an essential factor for the climate balance,” explains Klinkner, which is why, in view of the ambitious climate targets of the new federal government, “the focus must not only be placed on new vehicles but also on existing fleets.” For the Chairman of the Executive Committee of the German Transport Forum “a refit of existing vehicle fleets is a very sensible measure.”

AUGUST 2022 37

FUTURE OF TRANSPORTATION

DEALING WITH

CHANGE

In the first of two special interviews, Al-Futtaim Automotive’s Vincent Wijnen talks about helping shape an exciting new era for the automotive trade in the region

magine a future where you will be able to select, design and finance your vehicle online. Or perhaps you would prefer to be able to take on a car subscription, where it sits on your driveway for as long as you need it without the hassle of registering and licencing it – and can cancel it whenever you like. For its Future of Transportation special of T&FME, the magazine sat down with Al-Futtaim Automotive’s senior managing director Vincent Wijnen to discuss how the UAE’s most successful dealership is already offering those services and more to customers. Early into our chat, the former Nissan executive makes a side remark on how he is leading the firm’s rapid advances in the way the 38 AUGUST 2022

retail of vehicles works in the market: “Unless you are ahead of the curve, you get left behind.” It really could be the mantra to explain how he has re-positioned Al-Futtaim Automotive since joining the company in the early months of the Covid crisis in 2020. How is the commercial vehicles and SME sector responding to a post-Covid market?

The commercial vehicles market is a little ahead of the passenger cars. Coming out of Covid, there are a lot of companies that are either growing or renewing. I think, what you see is them being a little bit ahead of the curve and those products are less affected by supply chain issues, because they don’t consume as many special materials. (However on the

People are much more comfortable with using digital means to make decisions”

car) side supply is holding back new vehicle registrations although we are up 4% in people visiting our showrooms compared to 2019. You worked across Europe and Asia in your previous role with Nissan, and now with AFM Automotive you cover the Middle East and North Africa, how do they compare?

I think here in some areas of the business, it is about 10, 20 years behind mature markets. The UAE is interesting because if you look at the cars in the car parks, the market looks very mature and possibly richer than most I’ve seen. However, in some ways, it is still very traditional. People walk into the show room (to buy). It’s not the same in Europe anymore. meconstructionnews.com

FUTURE OF TRANSPORTATION

e-commerce functionality with our six steps to buy programme on all of our brands in the UAE. So, you can actually buy a car online without any physical intervention; and that you’ll get the car delivered and don’t need to go to showroom. Selling cars is still not a huge volume compared to the total, but it is growing. One of the most interesting options you now offer is the MOOV service where you can subscribe instead of own or lease, say, a Honda or Toyota RAV4. Being the Netflix of the automotive trade seems pretty out there for the market.

It’s all digital, and you can pick the car you want, choose the payment you want and again there doesn’t have to be any human intervention. You upload your driving licence and use your credit card and your car will be delivered to you. How different is that demographic for this service?

The customer profile is definitely different. It’s young, affluent people in there 20s and 30s who don’t think they need to own a car. And also the female cohort is much higher. We also have a 25% of the fleet as hybrids and all of them have gone. The difference between leasing or renting is that you get the vehicle you want – and for as long as you want. Has the rise in fuel prices affected the types of vehicles people are interested in?

PUSHING THE ENVELOPE Through services such as the MOOV subscription and vehicles like Polestar, Al-Futtaim Automotive is delivering a taste of the shape of things to come from the auto industry in the Middle East.

If you look at our website (traffic) the interest in hybrids has gone up four-fold since the price increases. Also (when it comes to EVs) the government is supporting it Your push with the performance electric vehicle brand Polestar has

And, of course in the UAE, a big chunk of the market is government owned – or linked to it. But I don’t think it’s as much an issue of being behind, it’s just the nature of the market. Since you joined, Al-Futtaim has rolled-out some new initiatives that seem very much at the cutting edge of what you might expect from a dealership even in Europe.

We have been focussing much more on the retail side of the business. I think people are also much more comfortable with using digital means to inform themselves and make decisions after Covid. We’ve invested a lot of money in developing and upgrading our digital platforms in the last one and a half years and we’ve also introduced full meconstructionnews.com

been fascinating to see. What has the market reaction been like?

Selling cars online is still not a huge volume compared to the total, but it is growing”

As you know we have the Showroom of the Future at the Mall of the Emirates where you can do test drives – and we have 100% buys after them. The experience is premium and the works well in the UAE. The problem is having enough vehicles!

12 APPS CHANGING MOBILITY 1. UBER

First out of beta in 2011, the allconquering ride-hailing app now has 118 million users worldwide

2. CAREEM

The Dubai super app is now available in over 100 countries across the MEA and Asia region

3. CAFU

Has become the world’s leading fuel app since launching 2018

4. EKA

The car-sharing app is now over five years old and added another 1,000 vehicles last year

5. QIXXIT

Qixxit was launched in Germany in 2018 and combines several different means of transportation into one trip

6. MOOVEL

One app to rule them all. Moovel integrates a huge array of mobility service providers into its one app

7. WHIM

Like Moovel this one mobility app to rule them all and has expanded from Finland across Europe

8. VOLVO CAR APP

Launched in the UAE this summer, the app gives customers access to a number of useful controls and enable emergency assistance wherever they are

9. TRELLA

Trella is an app that connects shippers to carriers to move freight intelligently

10. TRUKKER

Allows fleets to bid, win and haul loads across the Middle East

11. TRUKKIN How does it feel to be able to push the envelope like this?

This is very exciting in the sense of not just doing what you think is nice but you can do these things properly with the right infrastructure. So, with a company like Al-Futtaim, we are big enough to take (a risk) and actually do these things.

Is another cloud based B2B app uniting shippers and truckers in the region

12. FLEETIO

This app promises to track, analyse and improve your fleet operations from anywhere.

AUGUST 2022 39

PARTING SHOT

A VISION OF

THE FUTURE

To conclude its 100th issue, Truck and Fleet looks at the record-breaking VISION EQXX

he Mercedes-Benz VISION EQXX beat its own efficiency record in real-world driving earlier in the summer with another 1,000 km+ journey on a single battery charge. Following its recordbreaking maiden drive from Stuttgart to Cassis (France) in April, the research vehicle set the bar even higher, with a 1,202-kilometre road trip from Stuttgart to Silverstone in the UK. After negotiating an autobahn closure and demanding cross-country diversion near Stuttgart, the VISION EQXX crossed the French border near Strasbourg then cruised across northern France at highway speeds to Calais, where it boarded the Eurotunnel. Continuing its journey in the UK, it took the M25 around London then stopped off at Mercedes-Benz

Grand Prix in Brackley. Waiting to greet it there were the Formula 1 and Formula E experts who helped develop its advanced drivetrain. The VISION EQXX then carried on to Silverstone, where it was welcomed by special guest driver Nyck de Vries. The Dutchman, who races for the Mercedes-EQ Formula E team, opted not to go easy on the research vehicle, taking it up to its maximum speed limit of 140 km/h on the iconic British race track. Making the most of the occasion, he completed 11 laps, using the last of the charge on the pit lane. Throughout the road trip, the VISION EQXX took advantage of its innovative thermal management system to achieve an average consumption of 8.3 kWh/100 km in the face of heavy traffic and summer temperatures. As well as proving the effectiveness of Mercedes-Benz electric efficiency technologies

in a wide range of real-life traffic scenarios, the VISION EQXX’s long-distance journeys on public roads provide R&D experts with valuable data for the ongoing development programme. “The journey continues – even further, even more efficient! Yet again, the VISION EQXX has proven that it can easily cover more than 1,000 km on a single battery charge, this time faced with a whole different set of real-world conditions. As Mercedes-Benz strives to go all-electric by 2030 wherever market conditions allow, it is important to show to the world what can be achieved in real terms through a combination of cutting-edge technology, teamwork and determination,” says Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer responsible for Development and Procurement.

NEXT ISSUE: THE FLEET AND MOBILITY SUMMIT PREVIEW, CHARGING UP THE EV MARKET IN THE UAE, AND MUCH MORE!

40 A U GU S T 2022

meconstructionnews.com

WHEN YOU START THEIR ENGINE ... ... BUT IT FEELS LIKE STARTING A NEW ERA.

The new MAN Truck Generation. Simply my truck. The new MAN Truck Generation is designed with two things in mind: you and your company. That’s why the new MAN trucks offer everything you could ask for and more. In addition and economy as well as optimised vehicle availability. This comprehensive package will that’s not all: driving the new generation of MAN trucks means you can rely on MAN’s outstanding service backed by years of expertise. #SimplyMyTruck

Truck&Fleet ME August 2022

Articles inside

A NEW AUTO-CRACY

A NEW DEAL