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25 January 2022 DUBAI / UAE
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CONTENTS
CONTENTS MOBILITY
24 / QUEST DRIVE T&FME takes UD Truck’s Euro 5 Quester for a test drive and inspects the new Croner during their Dubai launch.
ALSO THIS ISSUE … NETWORK
06 / NEWS FROM THE MONTH Ekar’s boss claims that its rivals are in awe of its progress to date. LAUNCHES
10 / GROOVE RIDER The new Chevrolet Groove is on its way to the region as production begins.
06
10
12
16
20
30
INTERVIEW
12 / FUEL ON THE MOVE T&FME talks to Cafu’s Antonio Al Asmar about the on-demand fuellers radid rise in Dubai. INTERVIEW
16 / E-CANTER TESTED IKEA and DB Schenker talk about how they are integrating the Fuso eCanter into their operations. SPECIAL REPORT
20 / KIA CONCEPT The new Kia Concept EV9 headlines a new sustainable approach for the Korean car-maker. EVENT OVERVIEW
30 / HYPERMOTION 2021 Experts discuss how technology can and is reshaping transportation in the region. MARKET ANALYSIS
34 / AFRICA ANALYSIS The African auto-market is still full of potential ahead of Automechanika Dubai.
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DECEMBER 2021 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 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474
ANNOUNCING: THE TRUCK & FLEET AWARDS 2022 November was a busy month for the Truck & Fleet Middle East team. With the cooler weather came a raft of announcements and launches, but, frankly it was great to get around to events such as the Euro 5 launches for UD Truck’s Quester and Croner trucks. Even the office was as hectic as it has been for months as we began the earnest work for our upcoming and inaugural Truck and Fleet Awards in January. Ah, that name. Rewinding a bit, we made two major decisions last month. The first was to split the Machinery and Truck Awards into two separate events, starting with the Truck and Fleet Awards. Put simply: as the year has gone on we’ve realised that one event isn’t big enough to cover all the categories we wanted across Truck & Fleet ME and our sister publication Construction Machinery Middle East. So, now the Truck and Fleet Awards will stand by itself and come to the industry on the 25 January, 2022 at the suitably lavish Raffles Hotel in Dubai. If you haven’t done so already, please mark that date in your diary. The second major – and potentially even bigger – decision was to open many of the categories to an industry and
community vote starting 8 December. I have always been an advocate of making the judging as inclusive and as open as possible and by placing categories such as Heavy Duty Truck of the Year, Medium Duty Truck of the Year, LCV of the Year, Van of the Year, we can reach out to as many people in the region as possible. I’ve always followed the big industry awards, but have been frustrated that you can’t always look at the winner of the International Truck of the Year and expect we will see the same version here – and in occasional instances in can take years to see a regional launch. Now we have created a series of awards that I hope will excite some interest in the vehicles we rely on the region and also set a benchmark to follow in the years to come. These aren’t all product focussed awards however. Critically we want to also reward fleets in the region that setting their own benchmarks for us to follow. If you feel your fleet or a peer’s operation is worthy of nomination please do not hesitate to get a nomination in before the process closes at the month. All the details can be found at www.tfawards.com or if you prefer drop me an email at the usual address: stephen.white@cpitrademedia. com. Let’s start 2022 with a bang.
STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 DECEMBER 2021
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 SOCIAL MEDIA & MARKETING EXECUTIVE GLADYS DSOUZA gladys.dsouza@cpitrademedia.com +971 4 375 5478 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DATA & DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI 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 is accurate on the date of publication. The opinions and views expressed in 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 to CPI Trade Publishing FZ LLC. Printed by Printwell Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2021. All rights reserved.
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INSIGHT: Taking the lead in digital eco-tourism
BIM (Building Information Modelling) has come a long way in a short time in the market but I think it is telling that experts during the event feel the emphasis remains on upskilling the workforce and stakeholders on projects. However, you can’t ignore some of the advances that are being made from a technological standpoint. On a personal note, I am very optimistic that we will see further integration of technology such as virtual reality once we understand the value they can bring to a project. Having said that, while the application of blockchain was understandably discussed in great detail, it is still not clear how practical it can be when you switch to the real-life situation which is construction on site. It also seems to me to be a technological approach which may struggle to find traction here when you consider the depth in connectivity and trust in cybersecurity which is required. Given the scale of our projects, it could be useful tool but it will need to prove its worth before it finds widespread adoption in construction. Name withheld by request
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Multimedia Cockpit New interior lighting concept
MirrorCam
Electronic Parking Brake with HOLD function
Active Drive Assist
New rear axle ratio
Active Brake Assist 5
New light signature & night lights
Traffic Sign Assist
Predictive Powertrain Control (PPC)
The new Actros. Ready to set a new standard. New Standard Equipment
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• • • • • • • •
• • • • • • • • •
Keyless start New vehicle key Electronic parking brake PowerShift 3 with four driving programmes New light signature & night lights New Mercedes-Benz emblem sign New interior light concept The new design of the steering wheel
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MirrorCam Active Brake Assist 5 Multimedia Cockpit Multimedia Cockpit Interactive Trailer Stability Control Assist Independent trailer brake, electronic Remote Online Active Drive Assist (available only in Morocco) Predictive Powertrain Control 2nd generation (available only in Morocco)
NETWORK
EKAR BOLSTERS FLEET RANKS / JAM LAUNCHES NEW TUCSON IN THE UAE / FEDEX READY FOR HOLIDAY RUSH / AVERDA WINS WASTE MANAGEMENT CONTRACT
NETWORK Car rental companies are in ‘awe’ of us, claims ekar founder COMMENTS COME AS EKAR INTRODUCES DYNAMIC PRICING AND KIA, HYUNDAI AND MAZDA HEAD 1,000 CAR BOOST TO FLEET LOGISTICS ekar says the addition of 1,000 new vehicles to its growing fleet is a direct response to an increase in demand for personal mobility in the face of a “global car shortage and consistent surge pricing from chauffeur-driven mobility options”. The firm added that the new 2021 Kia, Hyundai and Mazda cars from its car rental partners range from economical, compact sedans, sports cars, sporty mini SUVs, and family-sized vehicles. With rates starting as low as 0.70 AED per minute, ekar now “boasts the widest range
of self-drive mobility vehicle options” in the Middle East, with 77 car models across seven cities in the UAE and Saudi Arabia. “Car rental companies are in awe of what’s going on at ekar. We are delivering unprecedented returns for the car rental industry via our revenue share programs, while providing data insights and analytics that the car rental industry has never since experienced,” said Vilhelm Hedberg, founder, ekar. ekar’s has recently introduced dynamic pricing and predictive AI-driven fleet optimisation and rebalancing.
A recent survey conducted of 1,000 users asked, ‘what could ekar add or change to the current pay-per-minute service,’ with 68% of users requesting acomprehensive range of pricing options and a wider range of cars added to the App. Using proprietary algorithms, the ekar data and tech teams have been able to improve the company’s booking percentages over 30% by recognizing latent demand, says the firm. Carsharing cars are positioned in optimal areas in the cities in which ekar operates, ensuring a car is within walking distance.
Hedberg added: “ekar is becoming increasingly datarich. The more cars we add, the easier for users to book a vehicle, the more efficient our service becomes, which leads to decision automation. This flywheel effect is a testament to a solid product market fit and a compliment to an in-house team of superstars that keep me awe-inspired. “The continued influx of EXPO visitors, tourists, and residents seeking cost-effective mobility solutions is a testament to how self-drive has a seat at the mobility table in the Middle East.”
AFRICON REPORT FOR AUTOMECHANIKA DUBAI REVEALS THAT EGYPT HAS ONE MILLION TRUCKS AND 470,000 BUSES
06 DECEMBER 2021
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NETWORK
AVERDA WINS WASTE MANAGEMENT CONTRACT FLEET
FEDEX PREPARES FOR HOLIDAY SEASON E-RUSH FLEET
FedEx gearing up to help e-tailers win the e-commerce race while “navigating the complex supply chain landscape” FedEx Express (FedEx) says it has strengthened its network and e-commerce capabilities in preparation for yet another busy shopping season in the Asia Pacific, Middle East and Africa (AMEA) region. The world’s largest express transportation company noted that the e-commerce boom accelerated by COVID-19 is expected to continue. Global online spending is estimated to increase by 11% year-on-year to US$ 910 billion during the upcoming holiday season. In the Middle East and Africa, 22% of consumers are ready to shop online during peak shopping event. “It’s never too early to plan ahead – shop early and ship early. This is especially true this upcoming holiday season with record-breaking shipping volumes on the horizon. In fact, nearly half (48%) of consumers worldwide plan to start their holiday shopping early this year, including 21% who had already started shopping in September,” said Kawal Preet, president, Asia Pacific, Middle East and Africa (AMEA) region, FedEx Express. “At FedEx, we are gearing up our efforts to help e-tailers win the e-commerce race while navigating the complex supply chain landscape. With our expanded network, improved service reliability and suite of e-commerce solutions, businesses including e-tailers now have the right tools at the right moment to delight their customers through fast, flexible, cost-efficient, and seamless deliveries this festive season.” With the exponential growth of e-commerce and the shipping volumes associated with it, FedEx expects the 2021 peak season to meet or exceed 2020. meconstructionnews.com
Waste and recycling firm Averda has been awarded a contract to work on the next phase of the Red Sea Development in Saudi Arabia. The firm has spent two years providing end-to-end, sustainable waste management services to The Red Sea Development Company (TRSDC) for the initial construction phase of the project and, following successful delivery, has been awarded an additional contract for the next phase, said a statement. As per the terms of the contract – signed with SepcoIII – Averda will provide an integrated waste management facility for the Red Sea site, which will have the capacity to sustainably treat waste from residents, employees and visitors.
Averda will also be responsible for providing equipment and waste collection vehicles to operate on land and sea across the whole site, the statement explained. “The Red Sea’s commitment to sustainability matches our own and gives Averda the opportunity to push the boundaries and deliver excellent results for both our clients and the environment,” said Averda chief
growth officer Mazen Chebaklo. Sustainability and regeneration are said to be the key principles underpinning this development, with every care taken to ensure all forms of waste are reduced, recycled, and recovered. Averda will include a new automated Materials Recovery Facility (MRF), a novel incinerator and a composting system, as part of the new contract.
JUMA AL MAJID LAUNCHES NEW TUCSON IN UAE RETAIL Hyundai distributor Juma Al Majid Est has formally launched the all-new Tucson. It claims it is the first C-SUV in its class “meeting diverse market need” and offers “exceptional versatility”. For its fourth generation, Hyundai says it took the allnew Tucson to the next level of automotive design, with a 3D parametric-style grille and jewel-like surfaces; “the Tucson is for trendsetters with a taste for futuristic design. Adopting a daring new design
language, labelled ‘Sensuous Sportiness,’ and created with cutting-edge digital design tools, Tucson’s ‘Parametric Dynamics’ exterior design theme features bold, angular surfaces and cutting-edge illumination.” The mission of ‘Sensuous Sportiness’ is to elevate the emotional qualities of automotive design. With the all-new Tucson, Hyundai is introducing its ultimate evolution and a definitive statement about its unstoppable forward momentum. Tucson offers you exceptional
versatility like the rear seat folding feature that provides 1,903 litres of flat storage space. The passenger space is equally accommodating with abundant amounts of room to keep everyone seated comfortably. From a technological front, the car comes equipped with a 10.25-in infotainment system and premium speakers from Bose, in addition to a touchscreen that is easy to operate and synchs effortlessly with smartphones to provide endless entertainment and information while on the road.
DECEMBER 2021 07
NETWORK
UAE CONSIDERING TRUCK-MOUNTED ROBOTS FLEET
FBR Limited, the robotic technology company, has announced that it has signed a Memorandum of Understanding with the UAE’s Ministry of Energy and Infrastructure. FBR and the Ministry will exchange information, collaborate and cooperate in relation to the application of modern building methods, smart support systems and other construction technologies in the housing and construction sectors of the UAE, with a particular focus on the Hadrian X and what it could deliver to the region. The MOU will see FBR and the Ministry identifying opportunities for the introduction
and adoption of FBR’s robotic construction technology, solutions and services to serve the construction sector in the UAE and exploring the potential for local manufacturing. FBR’s Managing Director & CEO, Mike Pivac, said: “This
MOU reiterates our commitment to the GCC region by establishing a framework for cooperation with the United Arab Emirates Ministry of Energy & Infrastructure.” He added that they intend to collaborate on the demonstration of the utility and the effectiveness of the Hadrian X and other robotic technologies to various stakeholders in the UAE through the implementation of pilot building programs in Australia and/or the UAE. FBR and the Ministry will complete a feasibility study of the Hadrian X in the construction sector in the UAE, with a view to the Ministry becoming an early adopter in the UAE.
VIRGIN HYPERLOOP: COVID AN OPPORTUNITY LOGISTICS Harj Dhaliwal, Managing Director, Middle East & India of Virgin Hyperloop has revealed that the company is currently working with DP World to move into the cargo and logistics sectors alongside passenger transport. “The pandemic exacerbated consumer behaviour where we want things now to be delivered in hours, not days or weeks, which has supercharged the e-commerce sector. There is a need to grow express freight and we are looking at
how we can translate this into opportunity using technology like ours and we are working with DP World to see how we can move now into cargo and logistics,” he explained. He told delegates during Hypermotion Dubai that: “Eight to 10 years from now autonomous vehicles will drive efficiencies because they will connect trunk lines and integrate into the overall satellite system to be able to handle routing.” Also speaking during the Hypermotion Dubai event, Florian Lennert, head of Mobility
for NEOM – Saudi Arabia’s new future linear city – said multimodal passenger, use of drones and freight systems would define the future and help control traffic and emissions in an age of pressing sustainability demand. “There are problems emerging from the rise in e-commerce and an immediate demand in that too many trucks can be delivering too little too often. We have to bundle this in some way. We have to advance mobility to build liveable cities, he said,” he said.
DS LOGISTICS CEO: WORLD SUPPLY CHAIN WOES TO EASE EARLY ‘22 LOGISTICS
The current woes stress testing international supply chains will be over early next year, according to Mohsen Ahmed, CEO-Logistics, Dubai South. Addressing Hypermotion Lab during Hypermotion Dubai, the Middle East edition of the Germaninitiated industry convex which reimagines the transportation and logistics industries – Ahmed defined 2021 as the “independence day” for the logistics industry. Consigning current global logistics dilemmas to pandemic-induced disruption in labour forces, container shortfalls and equipment shortages, Ahmed said; “We are now moving. The current supply chain disruption is a short-term scenario. In 2022 things will normalise and will ease up in transportation across the globe.” Dubai, said Ahmed, was able to largely side-step the logistics problems largely due to the agility of Emirates Airline which quickly converted some of its passenger capacity to cargo at the outbreak of Covid-19. Other companies which emerged largely unscathed were those who had embraced digitalisation pre-pandemic: “They stood out for their quick response providing good visibility on inventory and transportation.” He added the industry had lessons to learn from the pandemic – including the ending of reliance on single nation suppliers and the building of local and regional manufacturing hubs.
INSIDE THIS ISSUE: HOW CAFU BECAME A FUEL PLAYER, IKEA AND DB SCHENKER ON GOING ELECTRIC, TRUCK TEST DRIVES, AND MUCH MORE!
08 DECEMBER 2021
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NETWORK
SAFARI TO MAINTAIN KING FAHD CAUSEWAY
ETIHAD RAIL COMPLETES 50% OF PORT BRIDGES LOGISTICS
Etihad Rail, the developer and operator of the UAE National Rail Network, has announced the completion of 50% of the construction works linked to a marine rail bridge in the UAE, as part of Package B of Stage Two of the country’s ambitious project. Etihad Rail said that the marine rail bridge, which runs for more than 1km, will link the Khalifa Port to the UAE National Rail Network.
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SERVICES Saudi-based construction and facilities management (FM) firm, Safari, has said that it has been awarded all three FM packages by the King Fahd Causeway Authority, following a detailed tender process. As per the five-year contract, it will provide over 500 staff to maintain and enhance the aesthetics and functionality of the King Fahd Causeway. Safari’s scope of work includes collecting transit
fees on the bridge and the surrounding area on the Saudi and Bahrain sides, and the roads leading to the entrances, as well as car insurance facilities on the Bahraini side. “Safari is a responsible gatekeeper and caretaker at other important sites of value like Diriyah Gate as well as some of the top tier palaces and other important key locations across Saudi Arabia. We take our appointments as a service to our country, and we
take our role as temporary trustees very seriously,” said Ali Al Sagri, chief commercial officer of Safari. The statement noted that Safari will provide an electrical power supply station for all the bridges and roads. It will also undertake the cleaning of buildings, landscaping, and general site coordination as well as pest control for the King Fahd Causeway.
DECEMBER 2021 09
LAUNCHES
FIRST MIDDLE EAST-SPEC CHEVROLET GROOVE NEARS REGIONAL LAUNCH / MG GT TAKES ON DUBAI AUTODROME
LAUNCHES GROOVY PRICE $12.5K IN LATIN AMERICA
First Middle East-spec Chevrolet Groove rolls-off production line CHEVROLET HAS CONFIRMED THAT PRODUCTION REMAINS ON TRACK FOR A 2021 LAUNCH FOR THE BAOJUN 510-INSPIRED SUV The first Chevrolet Groove with full Middle East specs has rolled off the production line. Based on the Baojun 510 produced by the SAIC and GM joint-venture in China, Chevrolet is retailing the Groove in both this region and Latin America. Chevrolet has confirmed that production remains on track for a late-2021 launch for the region’s “newest and grooviest nameplate”. It added in a statement that the Chevrolet Groove channels two decades of R&D, design, engineering and manufacturing into all-new compact SUV: “The vehicle is powered by a 1.5l engine mated with 6-speed
10 DECEMBER 2021
transmission and distribution chain, Chevrolet Groove will deliver excellent fuel efficiency and fun-to-drive characteristics: Sporty and modern, Chevrolet Groove follows the brand’s global design language, with taut lines giving it an athletic look from every angle. “But, what sets Groove apart, is the advanced technology features. A no-compromise SUV, Chevrolet Groove is packed with the features that elevate your drive. Every. Single. Day. Reverse Camera and Sensors will make parallel parking a breeze, while the 8-inch touchscreen loaded with the latest Chevrolet Infotainment System help you
keep your hands on the wheel and your eyes on the road.” Sharon Nishi, chief marketing officer, General Motors Middle East & Africa described the Groove as an exciting SUV. “It can’t wait to meet you!” said Nishi. “We are always looking for new ways to broaden our portfolio in the Middle East, as we aspire to offer a vehicle for all people, all lifestyles and all price points. We are excited for the Groove to arrive in the Middle East, bringing with it advanced features in an affordable package that will appeal to the region’s tech-savvy millennial audience. More to be revealed soon!” The Groove joins an impressive
regional SUV line-up, including the Action, Tahoe, “the headturning, high-performance” Blazer through to the updated Captiva. The latest Baojun 510 CVT models produced by SAIC-GMWuling focus on the Compactend of the CSUV descriptor with a length, width and height of 4,220mm x 1,740mm x 1,625mm (with a luggage rack), and its wheelbase is 2,550mm. It also cargo volume of up to 1,210l. Its Groove cousin has been available in LT and Premier trims in South America, and versions there have been noted as packing a 110-horsepower (82-kilowatt) 1.5l four-cylinder set-up. In Chile for instance, the
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LAUNCHES
ALL-NEW 2022 MG GT TAKES ON DUBAI AUTODROME THE ALL-NEW 1.5T MG GT IS EQUIPPED WITH A HIGHLY-EFFICIENT FOUR-CYLINDER TURBOCHARGED ENGINE AND A DCT GEARBOX PREMIER TOUCH The Groove Premier in South America includes automatic climate control, LED lighting and leather-trimmed seats.
CROSSOVER APPEAL The Groove has been well-recieved in Latin America with the crossover available with front-wheel drive and a six-speed manual gearbox as standard equipment in markets such as Chile.
crossover is available with front-wheel drive and a six-speed manual gearbox asstandard equipment. As well as the 8in infotainment screen, the models also feature air conditioning and a rear-view camera with the Groove Premier also including automatic climate control, LED lighting and leather-trimmed seats. Most impressive, perhaps, is the
price tag with the CSUV costing less than $12,500. “One of the most affordable seven seaters in its segment, Groove is joining a powerful family. Commanding its own attention, Groove is small but mighty, attracting a brandnew audience to Chevy who are looking for a techsavvy car without breaking the bank,” says GM.
MG Motors launched the all-new 2022 MG GT with a unique, themed obstacle course titled ‘the London Lap’ at the Dubai Autodrome last week. Guests at the unique drive experience, including a selection of regional content creators and media outlets, got to push the MG GT’s performance and safety credentials to the limit and see how the car reflects the British-born brand’s commitment to diversify its line-up by unveiling a sporty new model. MG partnered up with talented British/ Egyptian illustrator Farah Abbas to create unique pieces of artwork, especially designed to bring the British heritage of the brand to life on ‘the London Lap’. The unique pieces depicted a modern twist to the cool British vibes and included an illustration of the Beatles in the colours of the Union Jack flag, which formed partof the braking challenge. Further artwork pieces included a modern version of Big Ben used as the roundabout, as well as miniature versions of a classic British phone booth and post box, and finally a beefeater acting as the checkered flag. The London Lap was split into two challenges. The first designed to test the MG GT’s braking and acceleration capabilities, with the driver being asked to accelerate
hard from standstill for approximately 100 m before coming to a complete stop right before the Beatles crossing. The second obstacle course tested the car’s overall dynamism, stability, handling and manoeuvring over a lap that ended with reverse parking. Drivers were timed across the circuit, to find the driver who completed the lap in the shortest amount of time whilst feasting their eyes on a memorable, rich experience that can complement the spirit of brand as well as the all new 2022 MG GT. Tom Lee, managing director of MG Motor Middle East, expressed: “The overall event and the timed lap experience were designed to precisely reflect the rebellious spirit of our all new 2022 MG GT and our brand as well: “We wanted to challenge our guests to a drive experience that’s different from anything they have experienced before, but that still fits with our brands’ spirit.” SPECIFICATIONS Engine
1.5 L
Transmission 5-speed automatic iCVT Power
173 PS
Torque
250 Nm
0-100 km/h
8 seconds
0-100 KM/H 8 SECONDS
SPECIFICATIONS Engine
1.5 L L2B I4 (petrol)
Transmission
5-speed automatic CVT
Length
4,220 mm
Width
1,740 mm
Height
1,615–1,625 mm
Curb weight
1,206–1,290 kg
meconstructionnews.com
DECEMBER 2021 11
INTERVIEW
FUELLING
GROWTH
Cafu’s general manager Antonio Al Asmar talks to T&FME about taking on the traditional fuel suppliers in the UAE
Y
ou don’t have to be on a Dubai road for very long before you see the now familiar sight of one of Cafu’s trucks en-route to yet another customer needing a top-up. In just a short amount of time, the company has gone from on-demand fuel delivery novelty to a major player in the UAE’s gas hungry market. The end of November marked its three-year anniversary and in that time it has built up a fleet of over 200 (largely) Hino trucks and is reshaping the way many private and corporate customers keep their vehicles on the road. It is a stunning example to any doubting fleet 12 DECEMBER 2021
operator of the power of digitalisation to grow a business – certainly in the confined and tech-savvy market that is Dubai. So quick has Cafu’s rise been, that when general manager Antonio Al Asmar talks about joining the company in its early days, he only has to look back three and a half years. “I’ve seen the rise from just being an idea in our founder’s (Rashid Al Ghurair) mind into the company we are right now, where we do almost 1 million AED in revenue each day. We now have more than 210 trucks, 500 pilots and 100 people in our head office. So, I’ve seen that growth in a relatively short period of time,” he tells T&FME. Its high-profile in the UAE belies what
We thought we can disrupt this ecosystem that no-one is disrupting”
is obstensibly a fledgling start-up taking its first flights into the market. Typically, that can mean being involved in a raft of different parts of a young business and Al Asmar’s own role as general manager spreads across finance, operations and fine tuning its customer proposition. The former strategy consultant spent years firing over ideas to clients that he never saw implemented, but his embedding into Cafu has been a chance to finally steer a concept into reality. However, even the fast-talking and faster-thinking Al Asmar was surprised at the breadth of the ambition Cafu’s founder wanted him to embrace. “I think in our founder’s mind, he wanted to be even much bigger than meconstructionnews.com
INTERVIEW
what it is right now,” he jokes. “There was nothing, just an Excel model at the beginning. I was overwhelmed. Oh, I’m like this seems too aggressive. There were so many trucks, so many litres and we still don’t have anything… those were my first thoughts, but from day one I could see the issue with a gas station. For me it doesn’t make sense. In my mind, I was thinking why do we still need to do it this way? It’s a real problem that we are solving and that’s what I think has made us so successful.” He continues: “It is inconvenient: I need to look for a gas station. From the start, I’m anxious because I need to look for one when I’m empty. Once I find one, I then need to do a detour. And when I’m there, I need to wait.” Cafu hasn’t been entirely created out of a vacuum or merely as a reaction to being frustrated at a fuel pump. Prior to launch, the team took a global look at whether - and how - it was being done in other countries. “I remember when I first joined, one of the first things was to look at who else is doing this in the world. And when you look around, there is one big company in the US, Booster Fuels, who do on-demand... By the way, we are now bigger than them so we are the biggest on-demand fuel delivery company in the world. But, yes, there were two or three companies in the US that is Booster, Yoshi and a third one (Filld). There was one in the UK. There was one in France, but they were small players and you could feel they were not big believers in the concept. They were doing small trucks, small operations: nothing really at scale.” Hard data in the local UAE market at the time was hard to come-by. Understandable perhaps for a new concept but the feedback Cafu did get suggested that there was a genuine excitement around the idea of on-demand fuel delivery. “If you asked people in 2006 whether they want an iPhone they would say ‘I don’t know’ but internally you could see the conviction. For Rashid, it was a nobrainer. Not only did it make sense, but he was also in the oil and gas industry for 10 years, so he had that experience and understood the business really well. He continues: “The economics of a gas station aren’t all that great, so we thought we can disrupt this ecosystem that no-one is disrupting.” A disruptor it may be, but during the early months of the operation when volumes were low, Cafu was reliant on the established meconstructionnews.com
WHY DO WE STILL NEED TO DO IT THIS WAY? Right from the start general manager Antonia Al Asmar could see that Cafu would be appealing to drivers and businesses who find the gas station experience inconvenient.
fuel retailers in the market. Its general manager says at the time those suppliers were sceptical that it would be a success. “I think that they saw the benefits of the model versus the gas station, but they were rejecting change. Because if you have been owning gas stations for the last 50, 60 years, you are very happy with that way. At the beginning, I would say they were sceptical and a bit aggressive, and not very keen on having us operate,” he recalls. “However, I think what really worked well for us is that we were in Dubai and the government were very supportive of this new initiative. The government wants to
We now have more than 210 trucks, 500 pilots and 100 people”
see new jobs being created in technology; it wants to see entrepreneurs try new things that haven’t been done anywhere else. With that support, and the support from the Dubai Economic Department and Civil Defense we were able to start our first operations.” Fast-forward three years, and the way Cafu is viewed has changed: “Now, I think they see us more as a legitimate competitor and I think our market share is now almost 4%. We have a strong presence and a lot of people will swear by Cafu.” At lot has changed since 2018. E-commerce and on-demand services are enjoying rapid growth and this evolution of consumer habits – stirred on by the impact of Covid-19 – means Cafu is now regarded as a partner in the UAE’s fuel retail landscape. “The focus is on who wants to work with us,” he continues. “Whether it’s selling us fuel, selling us their lubricants and are considering other products, I think we have moved to a point where the concept has been proven and we have moved away from the initial discussion of this will never work or a truck will never be able to deliver in a residential area. All of these, we have overcome.” It has also overcome the effect of the worst of the Covid-19 pandemic despite an obvious drop-off in demand: “People were realising there is a better way...’ let me do contactless’. So I think Covid gave us a lot of awareness and a lot of more adoption and you can see this in all the UAE all digital providers.”
HOME AND BUSINESS DELIVERIES Dubai has proven to be a welcoming city for the Cafu concept with the home and business deliveries split 50/50.
DECEMBER 2021 13
INTERVIEW
CONVENIENCE IS KEY Hard work behind the scenes is needed to ensure that Cafu always delivers convenience and is expanding its fleet to keep up with demand.
When we discuss Cafu in the T&FME offices, the question of how it manages to be competitive in the market-place often comes up. Unlike its peers in the traditional space, it is not at the end of a pipeline but at the end of those fuel providers’ supply lines. Al Asmar explains that relatively good margins on fuel prices at retail give it some wriggle room, but also its rapid growth has helped it to quickly reach a size where it can benefit from classic economies of scale. “Year-on-year our volumes are growing, so the discounts our suppliers are giving are getting higher and higher. Now, we are almost very close to what the gas station is charging,” he says. “Remember, we just go pick up the fuel, so there is no incremental costs on the supplier, which makes our economics very, very stable and it’s easy for us to manage. And then we are making 14 DECEMBER 2021
money the same way the gas station is by buying in bulk and selling in retail. The more we sell, the more we are making.” What is sells has also evolved. You can now book car washes, battery changes or just pick up some of those household essentials you normally pick-up when you fuel-up: “In a brief summary, we are exactly like a gas station!” Strong word of mouth has been a major factor in its progress to date and much of that is based on themes many fleets would recognise, such as customer retention through a reliable service. If your main offer is convenience then you need a relentless attitude to improving your fleet operation. “Like any operation, sometimes there is a delay. Sometimes we don’t show up… these things happen…but a lot of our effort to retain the customer is making sure we are
Our price is the same as a gas station. What we are selling is that convenience”
always adding trucks. We are always adding pilots and we are always training them to make sure our service is more and more reliable as we are expanding as a company. “And the second key thing that’s critical to maintaining your customer is the customer journey or the experience: the way the pilot behaves; how we inform the customer; how we talk to the customer; how he places the order and how easy is doing that? It is critical for us to succeed that the customer has to say yes, this is more convenient. Our price is the same as a gas station. What we are selling is that convenience.” During our chat, Al Asmar tells T&FME that half of its business is in the B2B sector, he believes that its success in the area is not widely appreciated. “People think of Cafu through the app and the consumer (business) but that’s only 50 percent of our business. Of basically companies that have fleet, we have more than 500 and our biggest customer has more than 1,000 cars. Our smallest one will be at least 20 cars: we try not to have smaller than that number. The way it works for them is super convenient and the benefits are three key things. One is the convenience and the downtime they save. Imagine if you have 200 Cars, the 200 drivers will need to waste some time to go to the gas station. “The second key thing that’s important for all these customers is we that give them a lot of control into what’s happening in their operations. Even in the UAE, a lot of customers wonder what happens when their trucks goes to refueling: maybe there’s a bit of embezzlement happening... We usually do the trucks at the site and it is almost impossible for it to happen now. It also saves on unnecessary mileage: if you have 200 cars that need to go to the gas station that’s a lot of extra CO2 emissions.” With the sceptics seemingly won over as it enters its fourth year, Al Asmar says the firm is looking long-term and beyond providing traditional fuels. On-demand charging or infrastructure for non-petrol or diesel vehicles is a possibility as is taking the concept into other markets. “People here in Dubai will pay for the convenience and from day one, as a company we have said that we want to prove it here, but we want to take the concept global. We truly believe we are a very scalable model. And it’s a model that is universal. Nobody in the world will tell you they like going to a gas station.” meconstructionnews.com
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FEATURE
THE EV ROUTE
PLANNERS T&FME looks at what eCanter early adopters DB Schenker and IKEA are learning on the job
D
aimler Trucks says it is going full speed ahead to win the race to zero emissions after it revealed that global customer deliveries of its all-electric light-duty truck FUSO eCanter have now surpassed the 300 vehicle mark. The electric truck is now in service with customers in sixteen countries and cities such as New York, Tokyo, Berlin, London, Amsterdam, Paris, Dublin, Oslo, Copenhagen, Helsinki and Auckland. With companies such as DB Schenker and IKEA counting eCanters amongst their ranks, the firm “says trust in the reliable urban delivery truck mean more deliveries are set to follow”. 16 DECEMBER 2021
According to Daimler, the distance traveled in daily customer operations now exceeds a combined 4 million kilometers driven locally emission free – equivalent to around 100 circumventions of planet earth or a little over five trips to the moon and back. The FUSO eCanter provides a 100 kilometre range with a single charge, making the 7.49t vehicle perfectly suited for zeroemission and quiet inner-city distribution. As of November 2021, more than 40 vehicles were so far delivered in the United States, approximately 75 trucks in Japan and another 190+ FUSO eCanter in Europe. Earlier in 2021, the all-electric light-duty truck was introduced to Australia and New Zealand,
We have high ambitions in increasing the number of electric vehicles”
expanding the vehicles success story and adding two more major FUSO markets to the roster. Since the launch of the eCanter in 2017, FUSO has been able to stake its claim as a pioneer and leader in electric trucks. Daimler Trucks has placed the LCV at the centre of its sustainability strategy but in broader terms wants the FUSO to be an example to the commercial vehicle industry into the future. It believes the eCanter can play a significant role toward achieving carbon neutral transportation as part of its aim to have all new vehicles in the Triad (Europe, North America, and Japan) “tank-to-wheel” CO2-neutral by 2039. Although 300 eCanter vehicles are on the road globally, Alexander Loesing, chief meconstructionnews.com
FEATURE
transformation officer MFTBC, says the vehicles themselves are only part of the story. “We are going to try to electrify our whole range of product segments, and with that, we are trying to provide an extensive ecosystem to enable the customer on their journey to carbon neutrality,” he says. “Already in the power mix the eCanter gives a 44% reduction in CO2 output compared to diesel. Fast forward to 2030, and we will see a higher mix of renewable energy sources and that increase will go down to 56% less polluting. We are working on an extensive ecosystem – and with that there is not really a one-size-fits-all solution for the customer. “With the right infrastructure you can go up to 250km per day, (so) you have to really have to really work with the customer to understand their operations. For example, they may need an AC or DC charger. And in the future, we also want to consult on energy contracts: if a customer wants to go fully renewable energy, we want to provide that. We want to give the best contract for the use-case. Another vision we have is to have a green depot.” He explains that could mean Fuso providing solar panels on the building, battery storage systems, and “have that connected to the charging management system of the vehicle to really have a ‘local for local’ net zero mission depot.” The company has also put a lot energy and resources into digital solutions that manage the energy use and productivity of an eCanter
HUGE OPERATION DB Schenker owns the world’s largest eCanter fleet, but the 40-plus vehicles are a small part of an operation that runs 45,000 trucks daily and which collectively deliver 1 million shipments per year.
44%
The eCanter gives a 44% reduction in CO2 output compared to diesel
fleet via its Truckonnect telematics platform: “We have constant vehicle monitoring, predictive maintenance and every 30 seconds we are monitoring the vehicle to make sure it is running in the ideal condition,” he explains, adding that the company is also a front-runner in dynamic routing solutions which plot the best route for a vehicle in real-time.” Loesing says that in Japan this is helping to reduce the dreaded downtime need for charging with customers like IKEA experiencing a 20% gain in logistics routing: “All of this has a significant on CO2 output. We see roughly a 15% CO2 output reduction by using a smart solution.” Fuso happily admits that while the numbers are great on paper they haven’t yet translated COMMITTED TO ELECTRIC VEHICLE DELIVERIES IKEA wants to switch to 100% electric deliveries where it can as it looks to reduce its considerable emissions output as the world’s largest home furnishing retailer.
meconstructionnews.com
into huge sales, but this is part of a strategy to work with early adopters to learn how best to develop the eCanter over the next decade. “We are continuously collecting data and feedback from over 150 vehicles on the road in the European market. This feedback and experience and flows directly into the ongoing development of the next generation of the eCanter,” he adds. “Contrary to cars, EV sales are picking up strongly but the trucking industry in Europe is still in its early stages. We are happy to be one of the frontrunners since 2018 with a vehicle that basically offers the same benefits as the diesel version,” says Frank Rohde, Fleet Sales, FUSO Europe. “So far, there are not many truck players in the market and the vehicle represents a big investment for our customers. Entrepreneurs are more and more willing to test the new technology although moving into emobility, currently comes with a price premium compared to the conventional vehicles,” says adding that future purchase decisions could be boosted the role of government incentives. Demand is picking up for tippers, but the box units, often deployed for daily inner-city distribution, remain the most popular models among early adopters, like DB Schenker, Taxa and Heinenken. Rohde says that these fleets often see the eCanter as part of a holistic approach to trying out sustainable transportation in a mix that can include electric vans, heavy duty trucks, and cargo bikes. DB Schenker is currently running the single largest eCanter fleet in the world. Its 41 eCanter vehicles are in daily operation across 11 countries in Europe and its head of land transport Cyril Bonjean, explains that the organisation is mainly using them for last mile delivery in city centres. “We have quality as our main priority, which means that we need to deliver goods in DECEMBER 2021 17
FEATURE
good shape, of course, but also in the right lead time; we have the fastest network in Europe and we are really proud of that,” he begins. The eCanter has joined a fleet of 45,000 trucks which collectively deliver 1 million shipments per year. He says that while their share of that workload maybe relatively small, the electric trucks are helping it to learn how it will build a far larger fleet in the future. Most critically, feedback from drivers from has been largely positive with them praising the small truck for its quietness and lack of vibration. “Our drivers now know how to use trucks in different conditions, but we have high ambitions in increasing the number of electric vehicles,” he says, adding that the company forsees a point where they will work in tandem with a hydrogen-powered long-haul fleet as it aims to be CO2 neutral by 2040. “This technology is a bit new but we are piloting it and have set huge and important targets.” IKEA is also doing the necessary groundwork to prove that electric mobility can be successful in markets that struggles with driver retention and recruitment. The world’s largest home furnishing firm estimates that it is responsible for 0.1% of global CO2 emissions and wants to be net zero by 2050. The first target is a 70% reduction by 2030 and it has committed to not using any carbon offsetting and will only use renewable or recycled materials in all of its products by that date. Its home delivery operation is also undergoing a radical programme of emission reductions and it has already deployed electric vehicles in 100 cities – and all of its deliveries in cities like
18 DECEMBER 2021
CHEAPER IN OPERATION Fleets are reporting that the Fuso eCanter is cheaper to run that its traditional engine counterparts – but the inital purchase remains higher.
With the right infrastructure you can go up to 250km per day”
Amsterdam and Shanghai (in China, 90% of all of last mile deliveries are conducted by electric vehicles) are carried out using electric vehicles. “We’ve committed to carry out all last mile home, deliveries using zero emission vehicles in all of our markets, by 2025,” explains Stefan Hofer, country fulfillment manager, IKEA Japan. “We have the same commitment for IKEA Japan as well. And we see that this is an important way that we, as a business, can contribute to not just reduce our climate impact, but also reduce air pollution, and help reduce noise pollution in the cities.” To cover its total transportation needs in Tokyo, IKEA needs to be running a fleet of up to 25 trucks. The three eCanters (two it owns,
a third is operated by its local transport service provider) it currently runs are just the start in its ramping up of its electric delivery fleet. “We use our two eCanters to replenish our city shops from the parents store in Kiyoko. We have city shops in Harajuku, Shibuya and Shinjuku and we move goods from the main store using the eCanter in a replishment operation,” Hofer says. “We charge these trucks at IKEA Kiyoko overnight and we operate between Yokohama and the city centre of Tokyo. The third truck conducts customer handled by our transport service partner; and the route that that truck takes is determined based on the number of deliveries, as well as the location of customers for that day.” He continues: “Based on the route planning, we deliver to customers in a certain parts of Chiba, Tokyo and Saitama; that truck is charged overnight at the Service Partners facility. And if needed during operation at the Mitsubishi Fuso service centre.” Like DB Schenker’s Cyril Bonjean earlier comments, driver feedback to Hofer has been positive. “The powerful engine allows for very smooth operations. And at the same time of vibration and noise are reduced significantly compared to a regular combustion engine vehicle,” he remarks. “This has had a very positive impact on customers, our neighbours, as well as the city residential areas where many of our customers are living.” While Fuso admits that the cost of the trucks are initially more expensive than traditional fleet alternatives, Hofer reveals that operational costs are where the electric vehicle scores highly. “When we look at maintenance and power consumption, they’re actually lower than a traditional combustion engine vehicles. So this is another good thing for our operations. He concludes: “But of greatest importance is the response of our co-workers: the very positive response that they’ve given us on the operational performance and the fact that it’s less stressful driving with the eCanter. As we see sales volumes increasing and we see IKEA expanding further into the cities and beyond over the coming years, we will see a growth in the number of people who are purchasing online and that will mean that there will be a bigger need for vehicles like the eCanter in the fleet operation. “We were an official partner of the COP26 that was recently held in Glasgow and we believe that strong collaboration really is the only way forward to tackle climate change on zero-emission transportation.” meconstructionnews.com
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Honouring the champions of the truck and fleet sectors, rewarding outstanding performance 25 January 2022
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FEATURE
KIA FOR THE
ENVIRONMENT
The new Kia Concept EV9 headlines a new sustainable approach for the Korean car-maker
K
ia Corporation has set out its vision to become a truly sustainable, responsible, and innovative mobility solutions leader, announcing a commitment to achieve carbon neutrality by 2045. During the ‘Kia Sustainability Movement’ virtual presentation in November, it presented its vision to become a ‘Sustainable Mobility Solutions Provider’ reflects the company’s approach to sustainability, which is to create sustainable mobility solutions for consumers, communities, and global society. In the first meaningful step in line with its corporate vision, Kia announced its plan to 20 DECEMBER 2021
achieve carbon neutrality by 2045, based on three key pillars – ‘Sustainable Mobility’, ‘Sustainable Planet’ and ‘Sustainable Energy’. The pillars will guide Kia in its efforts to reduce carbon emissions in all operational facets, from supply, logistics, vehicle production and vehicle use through to disposal of waste. By 2045, Kia plans to reduce 97% of the company’s 2019 level of carbon emissions. The company will attain carbon neutrality (the state of balance between the CO2 emitted into the atmosphere and the CO2 removed from the atmosphere) by implementing additional measures to fully offset its remaining carbon emissions. “For us, it is not only about setting goals and reaching targets. It is about setting a vision
It is about setting a vision that will inspire others to join the movement to benefit humanity”
that will inspire others to join the movement to benefit humanity and protect the environment,” said Hosung Song, President and CEO of Kia. “In line with our vision of becoming a sustainable mobility solutions provider, we commit to achieving carbon neutrality by 2045.” The single largest portion of carbon emissions generated by any mass vehicle manufacturer occurs when the vehicle is in daily use and on the road, helping to meet the mobility needs of customers. It is for this important reason that Kia is prioritizing the transition from internal combustion engine (ICE) vehicles to a full eco-friendly vehicle line-up. As a result, to achieve zero carbon emissions during the vehicle usage stage, meconstructionnews.com
FEATURE
Kia will further accelerate implementation of its mid-to-long term Plan S strategy. Kia aims to fully electrify its vehicle line-up in Europe by 2035. From 2040, Kia’s line-up in key markets around the globe will also exclusively consist of electrified models, realizing zero emissions during daily vehicle use. It is at this stage in the vehicle’s life where Kia will make huge strides in dramatically reducing the single largest culprit of carbon emissions. Kia is also working with its suppliers to reduce carbon emissions from the parts supply stage. Kia aims to create a carbon emissions monitoring system for its partner companies by 2022 and will provide solutions to its suppliers based on the resulting data. A key element to this plan is the use of ‘green steel’, as the steel industry has traditionally been one of the biggest global carbon emitters. Kia will initiate a ‘Blue Carbon’ project to proactively make a tangible contribution to preserving the environment instead of just reducing emissions to achieve its carbon neutrality target. The project will focus on marine ecosystems which are one of the most efficient absorbers of carbon. To boost the amount of blue carbon, Kia will restore and preserve Korea’s coastal wetlands in collaboration with external partners. As a part of the endeavor, Kia plans to discuss specific project opportunities with the Korea’s ministry of Oceans and Fisheries. Korea has one of the most extensive tidal mudflat environments in the world, making it advantageous for an increase in the level of blue carbon. In an effort to build a sustainable future, Kia will also work with ‘The Ocean Cleanup’, the non-profit organisation developing and scaling technologies to rid the world’s oceans of plastic. To effectively rid the oceans of plastic, plastic waste currently in ocean needs to be cleaned and new plastic should be stopped from entering the oceans. ‘The Ocean Cleanup’ to this aim developed ‘Interceptor’ to be deployed in rivers around the world to prevent plastic trash from entering the oceans. Going forward, Kia will work with ‘The Ocean Cleanup’ to create a resource circulation system. Kia will provide material support to the construction of the Interceptors and will utilize plastic waste gathered from the river cleanup process and use the materials in vehicle production. Kia is planning to increase the company’s percentage of plastic re-use to 20% by 2030. The company also plans to implement plastic recycling processes during the meconstructionnews.com
vehicle disposal stage. Once established, the process will increase the re-use percentage of used batteries and plastic. Furthermore, Kia is planning to conduct pilot projects on second-life battery energy storage systems (SLBESS) with external partners from 2022. Kia aims to achieve zero emissions across all aspects of its business – including all production sites – by 2045, after Hyundai Motor Group and its key subsidiaries announced their plan to join the RE100 initiative in July. Climate Group’s RE100 is an initiative to transition to 100% renewable energy in electricity generation. For Kia’s overseas sites, all electricity will be sourced from renewable energy by 2030; and by 2040 that transition will be complete
97%
By 2045, Kia plans to reduce 97% of the company’s 2019 level of carbon emissions
for all of Kia’s domestic business sites. In line with Kia’s RE100 commitment, Kia’s Slovakia production facility has already turned to 100% green energy in electricity generation. To help accomplish this goal, Kia will actively transition to solar energy electricity generation for business sites in Korea, US, China, and India. By continuing to improve the efficiency of production facilities, Kia aims to cut carbon emissions by one percent each year. To realize this reduction, Kia will implement new innovations such as Carbon Capture, Utilisation and Storage (CCUS) technology. Kia will also transition all company fleet vehicles to electrified vehicles by 2030. Kia also previewed the Concept EV9 at its AutoMobility LA reveal during a busy month. The battery electric vehicle (BEV) concept embodies Kia’s commitment to achieving carbon neutrality. Seen as the clearest signal yet from Kia as to what might be the next addition to its new-generation EV lineup, the Concept EV9 epitomises the brand’s recent leadership in designing and developing desirable, high-tech, zero-emissions vehicles. Just like the EV6, the Concept EV9 is known as a dedicated EV from Kia, having been carefully developed and optimized on the company’s advanced Electric Global Modular Platform (E-GMP). The SUV also offers striking visual aesthetics thanks to Kia’s ‘Opposites United’ design philosophy. The Kia design team was especially influenced by the ‘Bold for Nature’ pillar of Opposites United. This has helped the all-electric SUV concept to take on an iconic
AN IMPORTANT MARKER The Kia Concept EV9 is an important marker for Kia as it attempts to become a global leader in sustainable mobility solutions, said Karim Habib, SVP and Head of Kia Global Design Center.
DECEMBER 2021 21
FEATURE
and bold form, meshing logical and emotional qualities with playful, rugged features and styling cues. Concept EV9’s extensive tech capabilities and all-round flexibility ensures that it feels at home when tackling traffic in densely populated urban areas; at the same time, it offers families the freedom to experience leisure pursuits away from city centers. “The Kia Concept EV9 is yet another important marker for us in what has been an incredible journey since the start of the year. Having made our intentions clear – to become a global leader in sustainable mobility solutions – today we are proud to show the world our all-electric SUV concept, which fuses together an advanced zero-emissions powertrain, a cutting-edge exterior design and a contemporary and innovative techbased interior space,” said Karim Habib, SVP and Head of Kia Global Design Center.
The shape of things to come
Concept EV9 represents a next possible iteration for the SUV. Developed on the advanced E-GMP architecture – the Concept EV9 is a high-tech, family-friendly vehicle that is powered by a zero-emissions all-electric powertrain. It blends a striking exterior profile with a modern and sleek interior space that is influenced with state-of-the-art tech. The incredible aesthetics of the Concept EV9 – both inside and out – have been carefully honed from Opposites United, Kia’s new design philosophy. Taking inspiration from the ‘Bold for Nature’ design pillar of Opposites United, the Concept EV9 embodies an adventurous, outgoing and recreational form with its rugged and upright stance. From the outside, such proportions help outline a three-row SUV footprint, signifying a vehicle that is highly capable, practical and ready for action.
2045 Kia aims to achieve zero emissions across all aspects of its business – including all Kia production sites – by 2045
INSPIRED BY WATER The Concept EV9 features a design inspired by taking note of the simplicity and perfection of nature, and how it contrasts and works together in perfect harmony. In this respect, the Concept EV9 took further inspiration from the ‘Water Element’ of Opposites United, taking on characteristics that relate to serenity, calmness and wellbeing. For example, the exterior color mimics the expansive depth of the ocean; this is then balanced by a soothing and clear blue sky that radiates throughout the interior. The ‘Water Element’ ethos also came to the fore when the Kia design team was looking at sustainable and ecological materials for use in the Concept EV9. Recycled fishnets have been used to help create the flooring of the vehicle and seating fabric is made from recycled plastic bottles and recycled wool fibers. Also, vegan leather, which is far more ethical and sustainable compared to conventional animal leather, was used throughout the interior space.
22 DECEMBER 2021
From the side, this modernistic angular profile gives the all-electric SUV a simple but distinctive outline that is deeply rooted in the ‘Bold for Nature’ pillar of Opposites United. A low gravity side body creates maximum and instant impact with the sharp crystalline inspired fender volumes that sit high up on the vehicle. This low side body profiling effect makes the fender volumes of the Concept EV9 pop out, resulting in a strong SUV stance. Contrasting with its muscular on-road presence, soft and welcoming volumes across the body of the Concept EV9 are offset with sharp and neatly edged elements. Solid rock geometry is expressed through a sophisticated design distribution of mass, while the volume of the soft fuselage cabin has been made to feel welcoming and approachable. Concept EV9 measures 4,930mm in length, 2,055mm width, 1,790mm height and has a wheelbase of 3,100mm. The concept also combines its stunning SUV form with state-of-the-art engineering. The all-electric SUV delivers driving range of up to 300 miles. It also features next-generation ultra-fast charging technology with a 350-kW charger that allows its advanced battery electric powertrain to replenish energy from 10% to 80% in 20-30 minutes. Tiger Face goes digital
ADVANCED DESIGN The all-electric SUV concept features an advanced zero-emissions powertrain, a cuttingedge exterior design and a contemporary and innovative tech-based interior space.
Kia’s iconic Tiger Face facade has been reinterpreted for the BEV era and is showcased on the Concept EV9. The new Digital Tiger Face benefits from the fact that all-electric vehicles don’t need the traditional grille that ICE vehicles rely upon, resulting in the Concept EV9 having a full body colored front that clearly conveys sustainability values. The new BEV-focused grille houses an intricate star cloud pattern display that is completely hidden behind the body panel of the Concept EV9 when not in use. The opportunities afforded with a re-styled grille and the Digital Tiger Face have resulted in a new air vent design that reduces the frontal mass of the vehicle and greatly improves aerodynamics. The hood vent duct area is utilised as a solar panel that helps recuperate some of the electric energy that the Concept EV9 uses. This gives BEV owners an alternative source of energy when they are not close to a charging station. Further enhancing aero efficiency are retractable roof rails that close inward into the roof of the Concept EV9 when not in use, creating smooth airflow over the vehicle. When needed, the roof rails can be raised by a simple touch of a button, further emphasizing the allaction and all-go nature of the Concept EV9. meconstructionnews.com
FEATURE
IN TUNE WITH ITS SURROUNDINGS To stay in tune with the environment – and tapping back into the ‘Bold for Nature’ design pillar – the Concept EV9 has an all-encompassing DLO panoramic sky roof.
A next-gen camera monitoring system that replaces the conventional wing mirrors further improves aerodynamic properties while also enhancing the spatial awareness of the driver. At the rear of the Concept EV9 is a delicate triangular d-pillar treatment that acts as a visual focal point and resonates with the SUV’s angular design elements. The d-pillar design also creates a unique Daylight Opening (DLO) signature. The machined 22-inch wheels further add to the geometric appearance and robust nature of the Concept EV9. A triangular aero design piece controls the airflow around the meconstructionnews.com
2035 Kia aims to fully electrify its vehicle line-up in Europe by 2035
wheel and creates a visual contrast to the circular nature of the wheel to fully express the Opposites United design philosophy, making sure a balance in harmony extends into every element and section. Mirroring the exterior design, the interior of the Concept EV9 has also been greatly influenced by the ‘Bold for Nature’ design pillar of Opposites United. Inside the all-electric SUV is a design undertaking that integrates the qualities of nature, movement and stillness as part of a scenic, first-class lounge. The panoramic roof, with its sky-gazing views, further adds to the sense of lightness and being in contact with the environment. An interactive 27-inch ultra-wide display connects the Concept EV9 from the realworld to the virtual one, while serving as the nerve center for all driver and passenger requirements, including media, climate control and comfort functionality features. This sense of ‘tomorrow’ extends from the interior design and into the steering wheel. The automotive industry today treats the steering wheel like a separate product – a total standalone subsystem; the Concept EV9, however, takes a radically different approach in which the pop-up steering pad is an extension of – and integrated and harmonized within – the interior space. The interior of the Concept EV9 explores new perspectives as the journey experience evolves. It has three forward-thinking interior modes that capture different journey situations and requirements. Active Mode is when the Concept EV9 is on the move, making sure the driver and passengers have an optimal driving experience from within the all-electric SUV. The two other modes relate to when the Concept EV9 is not moving. Pause Mode modifies the interior space to be more akin to a first-class lounge, giving occupants the opportunity to directly interact with each other while benefiting from the light streaming in from the wide panoramic roof. In this mode, the seats switch around to enable occupants seated in the first-row and thirdrow to face each other. The second-row seats fold down and become a table, completing the first-class lounge arrangement. The second stationary mode is Enjoy Mode, which opens the interior into a downtime breakout space by turning around the three-row seat configuration. In this mode, the tailgate opens, giving all occupants the opportunity to connect with the outside environment and gaze ahead and beyond the vehicle.
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DECEMBER 2021 23
TEST DRIVE
UD ENTERS
EURO 5
T&FME test drives UD Trucks’ new Euro 5 Quester and Croner in Dubai 24 DECEMBER 2021
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TEST DRIVE
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t has been a few years since T&FME last took UD Trucks’ Quester and Croner trucks for a spin, so last month’s launch and track day was a great opportunity to catch up with how the Japanese brand is making the jump to Euro 5 in the region. Japan itself made the leap to its Post New Long-Term Emissions Standards – the equivalent to Euro 6 – back in 2016, so reaching the higher emission targets for countries like the UAE’s Euro 4 mandate, doesn’t represent a giant leap forward. However, the new launches do come with a raft of other changes and services which may not quite match the full fat versions you would expect in other markets but UD is pushing forwards with a pretty compelling offering. Especially for those looking for a value alternative with the dollar/yen rate is as good as it has been for two years. The new Euro 5 long haul and heavy Quester and its medium-duty cousin, the Croner, also mark the first major launches in the region since the marque made the move from the busy ranks of Volvo Trucks into Isuzu Motors’ arguably more complimentary portfolio – at least in terms of the heavy duty-end of international markets. Certainly in the Gulf, UD trucks enjoys a higher profile than its Tokyo-based owner when it comes to larger truck sizes. Having said that, features such as the ESCOT (Easy Safe Controlled Transmission), its automated manual transmission, are the direct result of UD’s time with Volvo Trucks – although its worth noting that UD was at the cuttingedge with early generations of the system back in 1995 – and both Isuzu and its former owner have agreed to continue joint development for the next two decades. What we have is a balance of the old and new. The new Quester and Croner are not outright new platforms, but instead feature significant upgrades and refinements to minimise their environmental impact, improve efficiency and uptime, increase profitability, and optimise the Total Cost of Ownership (TCO), “all without compromising the benefits offered by the previous models,” says UD Trucks. Fleets in the UAE market have generally opted to skip Euro 4 for the higher emission standard of Euro 5. UD itself says it wants the launch of the new trucks to get it ahead of the introduction of new regulations in fast-growing regional
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EVOLUTION AND A BIT OF REVOLUTION The new Quester and Croner are not outright new platforms, but instead feature significant upgrades and refinements to minimise their environmental impact.
DECEMBER 2021 25
TEST DRIVE
countries such as the UAE and sensibly Qatar where it has made good progress over the past decade and will be adopting Euro 5 emission standards by mid-2022. This move allows businesses to better prepare for the switch to more environmentally-friendly fleets, as the Euro 5 range reduces NOx emissions by about 43 percent compared to Euro 4 and significantly reduces the carbon footprint of the vehicles through cleaner emissions, says UD Trucks. The official launch event was UD Trucks’ first since the COVID-19 pandemic and took place in Dubai this November. T&FME joined an estimated 160 customers and media from across the region, who were able to experience driving the new trucks first-hand for themselves. Understandably as its first major gathering in over two years, the regional team used the opportunity to
offer hospitality to many of them, including a chance to visit the nearby EXPO 2020 site. Most importantly, this was a chance to rack through the extensive number of new features offered on the Quester, as well as experience the ride quality of the Euro 5 upgrade. UD says the Quester Euro 5 range, with 460 hp and 2250 Nm torque, also delivers improved fuel economy by about 10 percent, assisted by the ESCOT automated manual transmission feature, a lighter tare weight and optimised driveline. Improvements made to the new Quester also extend to safety, where ESCOT takes away the drivers’ need to shift an average of 1,0001,500 times a day by automatically selecting the right gear at any given time. This leads to increased focus and safety for the driver. The latest Euro 5 upgrades also add to the Croner’s extensive specification list. The
The driver rating system and extra comfort could be game changers for many fleets concerned with value”
Croner is available in three models - MKE, LKE and PKE – with wheelbase variants that offer up to 21 different configurations to suit the specific demands of various industries. The truck’s fuel efficiency has been improved, in part due to a more aerodynamic cab design that reduces drag by 5 percent compared to previous models. According to the manufacturer, the Croner is very much driver-focused as its cabin is designed to put driver comfort first with numerous active and passive safety features to protect the driver, cargo, and surrounding traffic. With the COP-26 meeting taking place days before – emissions from transportation alone have the potential to increase global emission levels by over 1.5% – it was pertinent to hear that these heavy-duty and medium duty trucks combine optimal fuel efficiency with enhanced durability.
BETTER SUPPORT AND A BETTER RIDE The track day was a chance to experience the improved comfort of the new trucks, but also learn more about the list of support services UD Trucks is offering in the region.
26 DECEMBER 2021
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TEST DRIVE
IMPROVED ECONOMY UD Trucks claims the Quester Euro 5 range, with 460 hp and 2250 Nm torque, also delivers improved fuel economy by about 10 percent, assisted by the ESCOT automated manual transmission feature.
UD Trucks over the years has been one of the more discreet pioneers in truck technology dating back to its Nissan Diesel engine origins, its development of transmissions and the significant achievement of being the first truck manufacturer to introduce Selective Catalytic Reduction (SCR) technology in 2004. It claims the new range’s SCR technology significantly boosts environmental protection and fuel economy; and is more reliable when compared to other emission control technologies for reducing emissions. The new range focuses on three themes: improved efficiency and optimised TCO; better uptime; and better for the environment, says UD. The truck manufacturer claims it also delivers better uptime for both models via less maintenance time and an expanded AdBlue supply network, which is a safe-to-use diesel exhaust fluid used in vehicles with SCR technology to reduce harmful gases from being released into the atmosphere. Most importantly, a cleaner and more robust engine configuration with lower sensitivity to sulfur content in fuel leads to a longer engine life and contributes to a better environment. The truck is fitted with innovative UD Telematics – a high-tech wireless communications system, which allows transportation companies to maximise efficiency with real-time vehicle tracking and geo-fencing. From a driver’s point of view, the ride is much improved over earlier models in the opinion of T&FME. ESCOT is now a refined asset and as easy as ever to meconstructionnews.com
10%
The Quester Euro 5 range delivers improved fuel economy by up to 10 percent
use. Noise levels also feel greatly reduced as part of an overall improvement to comfort. Indeed, the new steering wheel and improved seating are welcome and reflect the work in Japan to make truck driving a much more attractive occupation to young drivers in an ageing workforce. Japan has suffered as much as any market in terms of driver retention and recruitment, so the emphasis on comfort makes a lot of sense and something fleets can benefit from here. While the look of the cab design is relatively stripped down compared to the premium-end of the truck market the real star of the show is the addition of a driver rating system that offers
immediate and specific feedback on driving techniques that are more fuel efficient via the instrument cluster. Effectively you are scored in real time and there are now no excuses for drivers to push the vehicle hard when the truck is warning you as you drive. Simple to understand, this is a real boon for fleets who consider good driving important and are concerned with the rising cost of fuel on their bottom line. “In the rapidly-changing trucks industry, staying ahead of the competition by launching Euro 5 trucks is a core focus for UD Trucks. The Quester and Croner Euro 5 models reflect UD Trucks’ ‘Better Life’ commitment,” remarked Mourad Hedna, president of UD Trucks Middle East, East and North Africa. “The launch is another example of offering optimum support for our customers as we make sure they are ready for any new regulations in such a fast-growing region.” At launch, the new Euro 5 models will be available in the United Arab Emirates and Qatar. At the same time, regional markets such as Saudi Arabia, Bahrain, Kuwait, Pakistan, Iraq, and others will benefit from new, improved versions of the Euro 3 Quester and Croner models. VERDICT
The Euro 5 Quester and Croner mark a step up from previous models. Depending on the level of services available in your market, the driver rating system and extra comfort could be game changers for many fleets concerned with value.
TRIPLE THREAT FROM THE NEW CRONER The Croner is available in three models – MKE, LKE and PKE – with wheelbase variants that offer up to 21 different configurations to suit the specific demands of various industries.
DECEMBER 2021 27
WORKSHOP
NEW ADVANCER HYBRID REVEALED / 50 YEARS OF PIRELLI AND LAMBORGHINI DEWA WANTS GREEN HYDROGEN FOR VEHICLES / ABB SHOWCASES EV CHARGING
WORKSHOP
Thermo King debuts new hybrid trailer system THE ADVANCER HYBRID OPENS UP NEW COMMERCIAL AND OPERATIONAL OPPORTUNITIES FOR FLEET MANAGERS, CLAIMS FIRM REFRIGERATION
Thermo King has launched its new Advancer Hybrid refrigeration units, the latest addition to the Advancer A-Series trailer range. The Advancer Hybrid technology is now available across the full Advancer range: A-360, A-400, A-500, and the A-500 Whisper Pro. Seamlessly switching between the primary electric operating mode to engine power when needed, the Advancer Hybrid units combine Thermo King’s high-performance trailer refrigeration with Frigoblock electric technology, says the firm:
“The result translates into enhanced sustainability performance and operational efficiencies for transporters across both their longhaul and inner-city operations.” “Advancer Hybrid is designed to give our customers maximum choice and flexibility when it comes to meeting their sustainability commitments,” said Colm O’Grady, product leader trailer, Thermo King. “Thermo King Hybrid technology has already been successfully used to reduce emissions of truck and trailer operations in urban areas and low emission zones. Our
EMISSION SAVINGS Companies with demanding distribution operations can save over 50% of fuel cost per year and benefit from the associated CO2 savings.
customers continue to get the best of both worlds. They benefit in long-haul runs and alwayscompliant inner-city deliveries.” Featuring connectivity and telematics as standard, the unit is using geo-fencing to automatically switch into Hybrid electric mode when entering a pre-defined zone. This allows the fleet managers to operate unrestricted day and night schedules with the peace of mind that the unit complies with the regulations in the given area. When paired with the Advancer A-500 Whisper Pro, even when the unit’s diesel engine is operating, the system operates with sound level below the PIEK enforced 60dB (A) standard and allows access to the most noise restricted inner-city zones. For fleet managers, the Advancer Hybrid enables greater utility and efficiency of operation, which in turn opens new commercial and operational opportunities. Drivers benefit from the automatic and smooth transition from one drive technology to the other, guaranteeing that their Transport Refrigeration Unit is always delivering the refrigeration performance.
PIRELLI AND LAMBORGHINI STILL IN COUNTACH TYRES
Pirelli and Lamborghini recently celebrated 50 years of working together on the Lamborghini Countach supercar. Pirelli has been involved with the Countach in all its various guises – from the 1971 original to the new LPI 800-4, limited to 112 examples. One of the most enduring collaborations in the automotive world continues to this day, Pirelli and Lamborghini still jointly developing cutting-edge technology that centres around performance, sportiness, and control. Their latest collaboration is on the 2021 Lamborghini Countach, a hybrid supercar that puts out 814 horsepower and goes on to a top speed of 355kph. Pirelli has equipped the new car with P Zero tyres in 255/30 R20 size at the front and 355/25 R 21 at the back, developed to enhance vehicle performance.
INSIDE THIS MONTH’S WORKSHOP: AUTOMECHANIKA PREVIEW, EXPERTS TAKE A LOOK AT THE FUTURE OF LOGISTICS AND MATERIAL HANDLING, AND MORE
28 DECEMBER 2021
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WORKSHOP
ABB SHOWCASES WORLD’S FASTEST EV CHARGER
DEWA LOOKING TO PRODUCE GREEN HYDROGEN FOR VEHICLES GREEN HYDROGEN
Consulting companies have been invited by the Dubai Electricity and Water Authority (DEWA) to submit offers to develop an ambitious strategy to produce green hydrogen. To achieve the objectives of the Dubai Green Mobility Strategy 2030 and encourage the use of sustainable transportation and the Hydrogen Vehicles System, the new project aims to develop the hydrogen economy, open up local markets to hydrogen vehicles, and encourage an increase in the number of environmentally-friendly vehicles. According to a statement from DEWA, green hydrogen represents one of the pillars of a sustainable future that depends on accelerating the transition to carbon neutrality to support a green economy. The objectives are to develop the green mobility sector, reduce carbon emissions from various industries, generate electrical and thermal energy and produce water and other applications. The Green Hydrogen project, implemented in collaboration between DEWA, EXPO 2020 Dubai, and Siemens Energy at its R&D Centre in the Mohammed bin Rashid Al Maktoum Solar Park, is the first in the Middle East and North Africa to produce hydrogen using solar power. The pilot plant was designed to facilitate future applications and test platforms of different uses for hydrogen, such as energy production and transportation, the statement explained. CEO Saeed Mohammed Al Tayer said the production of green hydrogen is part of DEWA’s efforts to support the Dubai Clean Energy Strategy 2050 and Dubai Net Zero Emissions Strategy.
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ELECTRIC VEHICLES As part of its mission to power e-mobility, ABB is showcasing its allin-one Electric Vehicle (EV) charger at Expo 2020 Dubai, coinciding with the company’s ABB Day celebrations on 13th December. Making its public debut in the Middle East, visitors to the Sweden Pavilion at Expo 2020’s Sustainability District will get a firsthand look at Terra 360 – which provides the fastest charging experience on the market. ABB’s new technology comes engineered with a modular charger capable of charging up to four vehicles simultaneously. It can deliver a maximum output of 360 kW, which can fully charge an electric car in 15 minutes or less. The launch of ABB’s new electric car charger comes during a time in which the number of electric and hybrid cars on the roads continues to increase globally. In
COMING IN 2022 Available in the UAE from June 2022, the Terra 360 is designed with the daily needs and expectations of EV drivers in mind.
the UAE alone, estimates predict that by 2030, there will be 42,000 electric cars on the roads across the Emirates. Initiatives such as the Dubai Green Mobility Strategy 2030 and the Abu Dhabi Transportation Mobility Management Strategy indicate a clear focus on encouraging the use of sustainable transport and electric vehicles in the country. “Demand for fast and convenient
EV charging is greater than ever, as vehicle owners across the Emirates seek to travel with reduced environmental impact,” said Loay Dajani, Managing Director, ABB Electrification, Middle East and Africa. “The Terra 360 is key to fulfilling this need, accelerating e-mobility adoption in the UAE and beyond. We look forward to welcoming our partners, customers and employees.”
FRIGOBLOCK INTRODUCES THE FK2 RU
BETTER UPTIME For better uptime, temperature control monitoring and cargo safety, the new FK2 unit can come with integrated telematics and connectivity thanks to owner Thermo King’s BlueBox.
REFRIGERATION
Frigoblock, one of the leading manufacturers of transport refrigeration units in Europe has introduced the FK2, its new all-electric refrigeration unit. The design of the Frigoblock FK2 unit combines sustainability, reliability, and intelligent operation to empower the next generation of urban cold chains, claims the firm. “With the new FK2 unit, we are not just delivering 100% electric
cooling technology,” said Eric Breddels, product management leader at Frigoblock. “Our ambition from the start was to extend this capability and optimise operations based on data insights. The new design of the unit leverages connectivity, operational insights and efficiencies needed to truly drive clean, low emission distribution practices in cities today, and in the future.” Compared to diesel-powered units,
the FK2 generates less noise and up to 50% emissions reduction depending on customer operation. When connected to a battery-powered electric vehicle, the FK2 creates a zero-emission transport refrigeration solution. These capabilities have become increasingly critical for customers to demonstrate their compliance with the growing range of sustainable legislation governing urban operations. The FK2’s is electrically powered featuring Frigoblock’s proven alternator technology. The high-efficiency Frigoblock power drive alternator is designed to maximise the energy generated from the truck’s engine, contributing to better fuel efficiency of diesel-powered trucks. For more sustainable transport operations, FK2 units are compatible and can be installed on both hybrid and electricpowered trucks. Customers can track their unit’s operation at any time, and clearly demonstrate the temperature set points across every journey. DECEMBER 2021 29
FEATURE
LOGISTICS IN
HYPERDRIVE
Hypermotion Dubai proved technology can reshape transportation in the region
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he beginning of November saw transportation and logistics experts gather at the Hypermotion Dubai event with the Hypermotion Lab and Smart Mobility conference floors dominated by talk of how road and urban transport are undergoing the biggest transformation since the invention of the internal combustion engine in the 1880s - with policymakers and regulators facing tough choices needed to drive widespread mindset change. Anthony Foxx, the former US Transportation Security and Chief Policy Officer of ride sharing app Lyft, said the transport industry had been slow to adopt technological transformation and was now facing a perfect storm of change. Foxx told delegates that to address public demands for fewer emissions to
30 DECEMBER 2021
meet climate change goals the industry would have to reinvent its approach to sustainable infrastructure maintenance could result in gas taxes becoming obsolete and the industry would have to partner with urban planners to ensure the best-case use of land and transport connectivity. “The intensity of urban growth will put pressure on the transport system,” he said. “We have to think much differently about the future than we have in the past. The time is now for new ideas and ideas that can scale. We cannot understate the value of land use in the equation. The old way of building infrastructure is going to die out. Planning is an under-utilised resource in the transportation industry. “We have to have a game plan, or the transportation system is going to fail. In a way, we are going to have to go back to the future using our feet in walkable communities to further the future.”
Technology is now at the point where we can capture the data and connect demand with supply”
In the Smart Mobility conference experts painted a picture of our roads in 50 years hence predicting fewer roads, underground networks, safe, smart highways, less vehicle ownership, and more driverless, shared rides. Prof. Dr. Sabih Khisaf, VP International, Institution of Civil Engineers said while he expected road networks to still exist, hyperloop technology would change the way we travel while Andrew Stevenson, Transport & Built Environment Sector Leader, Middle East, Mott MacDonald said planners needed to recapture the opportunity of Covid lockdowns, when roads were less crowded and emissions much reduced. The industry, he said, had to aim for “greener roads”, great space efficiency, more autonomous vehicle use, and ‘naked’ smart highways where signs and signals are redundant. Dr Nahid Sidki, chief technology officer, Research Products Development meconstructionnews.com
FEATURE
DRONING OUT DELIVERIES Drones are set to totally transform the Middle East’s warehousing and logistics sectors with operations in Oman imminent, according to a speaker at Hypermotion Dubai’s Scalex (Supply Chain and Logistics Excellence) conference. Karim Albalushi, MENA director of US-based UVL Robotics, demonstrated how the region’s last mile delivery will soon be ‘people-less’ and climate-proof. “Drones are designed for the most extreme temperatures and can deliver a package several times faster than a normal courier, thereby reducing the cost and delivery time,” he explained. UVL Robotics’ drones also include inventory technology which can deliver accurate, fast, and secure stock counts. “Our drones can fly autonomously inside a warehouse and are equipped with high-precision scanners, optical rangefinders, and HD cameras,” explained Albalushi. “The data that the drone scans and processes during the flight is automatically uploaded to the ground station and then integrated through special software with the warehouse’s WMS system. The client can monitor the inventory progress on monitors in real time, as well as evaluate the integrity of pallets from drone photos.” The company is the first to set up a fully autonomous last-mile delivery drone system in Oman and confirms that it has completed inventory pilot testing with some of the region’s biggest players. “We are the first in the world to offer a full range of drone inventory services in the B2B segment,” confirmed Albalushi. “40,000 pallets – the volume of a large customer’s warehouse, was calculated by 10 drones in a few hours.”
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Company (RPDC) said car ownership would be greatly reduced with mindsets embracing the ride sharing economy in autonomous vehicles travelling on smart highways resulting in safer journeys. “There will be fewer roads,” said Dr Nahid, “and there will be underground roads with NEOM in Saudi Arabia among the few in the world now emphasising underground networks for transportation and utilities.” Dr Georges Aoude, CEO, Derq said the road network of 2071 would be “electric, connected and autonomous” and said policy makers and regulators could face unpopular choices such as road usage charges. Asset sharing within the logistics sector will be the new industry norm as the segment strives to curb emissions and meet sustainability targets, delegates heard at Materials Handling Middle East’s Scalex conference, running alongside Hypermotion Dubai. Addressing Scalex, which focuses on supply chain and logistics excellence, Avishai Trabelsi, CEO and co-founder of Quicargo, the Amsterdam-based digital freight platform, said regulation of the sector would make asset sharing inevitable to reap sustainability and safety goals. “There are currently 13 million trucks on the road in Europe and five million businesses shipping goods, yet the trucks
A PERFECT STORM Anthony Foxx, CPO of ride sharing app Lyft, said the transport industry is now facing the perfect storm of change.
The intensity of urban growth will put pressure on the transport system”
LOGISTICS ON THE MOVE Expect fewer roads to journey on and greater autonomy in the materials handling and logistics sectors, said experts at the event.
travel half empty. Trucking accounts for only 2% of the vehicles on Europe’s roads but for 20% of the mileage covered and 30% of all road fatalities and emissions,” he explained. “Asset sharing can immediately bring about a 20-50% reduction in these impacts so regulation will push the sector forward and deliver better pricing for all parties involved.” Gaurav Biswas, founder & CEO of Trukker – the MENA region’s leading digital freight platform – said asset class is an example of technology transforming the industry. “Technology is now at the point where we can capture the data and connect demand with supply,” he commented. Jamil Shinawi, co-founder and director of AHOY which develops technology empowering next-gen logistics and supply chain solutions said the impact of asset sharing would be far-reaching. “The potential is huge but there are challenges in the MENA region with a lack of infrastructure and standardization. Asset sharing will also impact the insurance sector with liabilities shifting and the entire system of asset ownership changing.” Hypermotion Dubai and Materials Handling Middle East were organised by Messe Frankfurt Middle East and held under the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, president, Dubai Civil Aviation Authority, chairman & CEO Emirates Group and chairman Dubai Airports. It was the first showing of the industry game-changing event outside of Europe and gathered over 150 global experts at its three sector-leading conferences. “The conferences laid bare the impending challenges facing these vital sectors and the technology which is enabling change,” explained Simon Mellor, CEO of Messe Frankfurt Middle East. ”Industry delegates were privy to the disruptive technology which can transform industries, super-charge the creation of localized hi-tech economies and better the lives of the people they serve.” DECEMBER 2021 31
SHOW PREVIEW
100 YEARS IN
THE MAKING Automechanika Dubai looks to the future as it celebrates 100 years since the first car arrived in the GCC
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his year marks 100 years since the first recorded passenger car arrived in the GCC – historians note that it arrived in Saudi Arabia in 1921, brought by King Abdul Aziz 11 years before the country’s unification, when the King was known as the Sultan of Nejd. While there are no records of the first car in the UAE, it is known that at least two vehicles arrived in 1936 as part of a geological expedition to search for oil. Since then, both countries have evolved into key international markets for the automotive industry and serve as a crucial gateway between east and west. Over the past century, the essential aftermarket and auto parts markets in both
32 DECEMBER 2021
countries have been import driven. However, all that could all be about to change. Messe Frankfurt Middle East, organiser of Automechanika Dubai, charts a shift towards ‘service’ over product and the emergence of a domestic production market. It serves as a timely indicator ahead of Automechanika Dubai, the Middle East and Africa’s largest international automotive aftermarket trade show, which returns to Dubai World Trade Centre in December and coincides with Expo 2020. The aftermarket event hosted over 30,000 visitors and 1,900 exhibitors in 2019, and a lot has changed in the region since the last event. But there is yet more to come. According to the Glasgow Consulting
The KSA automotive aftermarket is progressing on the back of recent trends”
Group report, localised production by OEMs in the Middle East is primed to be one the industry’s hottest advancements, with Saudi Arabia in pole position. Benefits will likely include a curb on import costs, stimulation of local investment, and tackling imitation and manipulation. “Top OEMs such as Toyota are likely to consider local manufacturing of vehicles. Significant investment by a key OEM is expected to enhance the auto parts manufacturing supply chain in the country. KSA is currently developing a car manufacturing hub and working to incentivise investors to pump in more money in the industry,” states the report. “KSA is also willing to provide the required raw materials at competitive prices to auto and meconstructionnews.com
SHOW PREVIEW
parts manufacturers. The auto cluster aims to attract local and foreign investment, increase export capabilities, create employment, and contribute to economic diversification as a part of the Kingdom’s 2030 Vision Reform Plan.” Saudi Arabia, says the report, is creating a domestic automotive industry and has encouraged global vehicle manufacturers to establish local operations to spur to local job creation, new technology adoption and skills transfer. While the shift may be a gradual one, the global international aftermarket, which currently reaps the benefits of the UAE and Saudi accounting for 60% of all vehicles sold in the GCC, will have to take notice. The report sounds a bullish forecast for the auto parts market in Saudi Arabia and the UAE over the coming half decade, declaring “robust” potential and expected growth “at a healthy rate” but subject to change. Key industry changes in the region include a readjusting of both the Saudi and UAE automotive market towards a “service oriented” business model with more players focusing on customer experience and after sales service, boosted by third party automotive service-related mobile applications. While the report says these apps are at “an introductory stage” in both KSA and UAE they represent “vital potential for development and white space for new entrants.” Rising investments are being perceived in new customer engagement channels such as quick delivery modes and online sales of spare parts in Saudi Arabia. While the GCC’s private vehicle auto parts market was impacted by the pandemic with sales of private vehicles and mileage covered dropping – Saudi Arabia’s aftermarket component market contracted by 16% to a value of SAR 10.6 billion in 2020, while the UAE market shrunk by 20% to AED 8.2 billion – the report predicts the market will be “back to normal” in the second half of 2022. Driven by post-Covid pent up demand, and taking inflation and supplier price rises into account, the KSA market is expected to see value growth of approximately 8.5% with the UAE predicted to see a rise of around 10.8%. Growth is also expected to come from pandemic-inspired emerging trends in mobile servicing, vehicle pick-up, delivery, and online parts shopping, supplemented by substantial growth demand for services like disinfection, cleaning, and car wash. In Saudi Arabia, growth will also reflect recent social reforms, including the presence of women drivers. “The KSA automotive aftermarket is progressing to a phase of meconstructionnews.com
Top OEMs such as Toyota are likely to consider local manufacturing of vehicles”
promising growth and development on the back of recent trends including recovery of oil prices and removal of the ban on women driving,” states the report. Demand for spare parts will be heightened from Saudi customers who look to make performance modifications to their vehicles, and a boom in KSA and UAE second-hand spares markets. External aftermarket services will remain high in Saudi Arabia where 83% of the vehicles are without warranty. The sheer pace of change in the region’s industry will be reflected at Automechanika Dubai, with Messe Frankfurt Middle East promising “a host of new and returning features designed to keep thousands of professionals up-to-date on the latest market trends.” Mahmut
COVID-19 RESPONSE While the GCC’s private vehicle auto parts market was impacted by the pandemic with sales of private vehicles and mileage covered dropping, 2022 is expected to see a recovery in the aftermarket.
Gazi Bilikozen, Automechanika Dubai show director, said the in-person event will see the regional industry redefine its strategies: “We are in constant contact with all our stakeholders as the global automotive aftermarket community continues to navigate this unchartered territory. Automechanika Dubai will allow the industry to recharge business plans for 2022.” Ahead of the event, industry experts have revealed that digitalisation and sustainability remained the top two trends discussed at a local, regional and international level, with many pointing to COVID-19 as a catalyst for change. Representing Morocco – a country debuting at this year’s Automechanika Dubai – Soufian Chriki, Sales Director for Siprof said: “The market is in transition with digitalisation, climate change, cryptocurrency, artificial intelligence and sustainable energy all having an impact.” Polish-based AS-PL, producers of alternators and starters, said while digitalisation has played a large role in its processes for years, the pandemic exacerbated this change. Robert Snider, CMO at AS-PL, said: “The process of digitalisation has been transforming the industry processes for some time. The pandemic accelerated this transformation as well. More and more processes in the industry have been automated for better effectiveness. “And companies such as AS-PL, which cooperates with customers from various markets and countries, introduced systems that enable us to react faster and more efficiently when it comes to customer relationship management.” Lithuania’s Elinta Charge, which is responsible for manufacturing public EV charging stations across Europe, explains its use of proprietary technology allowed for continued customer support despite travel restrictions. “All our charging stations are equipped with our elios.cloud back-end system solution, which allows us to monitor the charging station, communicate with it, detect an issue remotely and in many cases solve an issue without physically interacting with it,” said Ignas Mikutis, CEO of Elitna Charge. Mikutis, who believes digitalisation and ‘going electric’ are dominating trends within the automotive industry, explained that sustainability also plays a key part in the design of their products. “Most importantly, we discuss with the team what is sustainable and how to avoid the pitfalls of greenwashing. Our take is very simple, we make things that last, and we build our solutions on three pillars: timeless design, advanced engineering and smart electronics.” DECEMBER 2021 33
MARKET ANALYSIS
OUT IN
AFRICA
Automechanika Dubai looks at the potential of the African market
A
new report commissioned by Messe Frankfurt Middle East, organiser of Automechanicka Dubai – the largest international trade show for the Middle East and Africa’s (MEA) automotive aftermarket and service industry – signposts huge aftermarket potential in the African continent. Produced by German consultants Africon GmbH, which supports international companies looking to expand their automotive businesses in Africa, the report identifies Nigeria and Kenya as key to unlocking the continent’s automotive aftermarket potential and the individual characteristics needed to succeed in each national marketplace. The report points to a resurgence of international interest in the African market, which boasts one of the world’s 34 DECEMBER 2021
fastest-growing populations, with the United Nation’s 2021 population estimates putting Africa at 1.374 billion. “Every year, more people are entering the labour force,” says the report. “Though this development poses significant risks in terms of the need for job creation, it also drives the growth of an emerging middle class.” And while motorisation rates across the continent remain comparatively low though expanding, Africa could prove a survival bastion for the conventional aftermarket market. “As the sector is under pressure in many parts of the world due to peaking vehicle fleets and technological disruptions, Africa is one of the last regions with ample room for growth of the ‘traditional’ automotive aftermarket,” says the report. With an ageing fleet requiring larger maintenance efforts and electric vehicles unlikely to gain significant short to
Africa is one of the last regions with ample room for growth of the ‘traditional’ automotive aftermarket”
medium-term market shares due to the continent’s infrastructure constraints, the aftermarket remains buoyant. The report singles out Nigeria, where 12 million vehicles are on the road, and Kenya, with a national fleet of two million (almost two-thirds of which are more than 15 years old) as nations with the highest promise in “the last underexplored market”. Both countries have the largest automotive aftermarkets in West and East Africa but require different approaches to access the potential. “Though precise numbers are difficult to come by, the Nigerian parts market overall might stand at approximately US$4 billion per year. In Kenya, the total might stand at around US$500 million,” says the report. Though there is a fledging parts manufacturing sector in Kenya, Africa remains largely reliant on imports to keep its fleets moving. Kenya is also emerging meconstructionnews.com
MARKET ANALYSIS
as a trans-shipment base to neighboring countries including Uganda and Rwanda. “This makes Kenya an interesting regional hub for the aftermarket,” says the report – citing Dubai-based trading companies as key suppliers making the emirate the second most important parts supplier to Kenya after China. Nigeria, which does not have a home-grown manufacturing sector, is import reliant, with many turning to Middle Eastern suppliers and leading both countries to develop e-commerce capabilities. “Both countries certainly do offer opportunities,” says the report. “For many global players in the aftermarket, the key first step to realising these is to decide to start engaging with these markets more actively.” Messe Frankfurt Middle East believes its Automechanika Dubai exhibition, the 18th edition of which will run at the Dubai World Trade Centre from 14-16 December 2021, will serve as an aftermarket supply superhighway to African growth potential. “To help facilitate this continental trade, the exhibition features a dedicated AfriConnections platform which connects African buyers with global suppliers,” explained Mahmut Gazi Bilikozen, Automechanika Dubai’s Show Director. “Engaging with the market means meeting the key African importers and future business partners who attend Automechanika Dubai to seek out business opportunities and stay ahead of the latest market trends. The show is a gateway to a market ripe for exploration via Dubai and the Middle East.” In terms of northern Africa, Egypt’s automotive aftermarket is accelerating and has been dubbed “one of Africa’s most exciting markets” as its motoring population and vehicle sales grow, its economy expands, FDI floods in, and the government moves to combat automotive emissions. It’s a powerful combination which africon’s new white paper contends has resulted in an aftermarket now worth between US$1-2 billion. And africon should know, having worked on more than 30 automotive market projects across Africa in the last few years. A country with the third largest population within Africa– with more than 100 million people – its economic advancement has overtaken South Africa as the continent’s second-largest economy with a GDP of US$360 billion and sturdy growth forecasts. Egypt has been the largest recipient of FDI in Africa for several years in a row, receiving more than US$9 billion worth of investments meconstructionnews.com
ROBUST GROWTH Automechanika Dubai exhibitor GB Auto is expecting a period of robust growth in its home country Egypt with e-commerce growing and the share of CNG-powered vehicles expect to increase.
in 2019 and almost US$6 billion in 2020. “This growth is driven, among other things, by continuous economic and fiscal reforms. For instance, on the Ease of Doing Business Index, Egypt has improved by 14 places since 2018.” Egypt is now in growth mode, even despite the rigors of the COVID-19 pandemic and was among the few countries to report full year GDP growth in 2020. The growth has fed into the aftermarket, with the country now being home to one of Africa’s largest vehicle fleets with around six million vehicles on the country’s roads, with the majority - approximately 4.6 million - being passenger cars. This is followed by almost a million trucks and about 470,000
The Nigerian parts market overall might stand at US$4 billion per year”
buses. Most passenger cars are petrol-powered, while many commercial vehicles rely on diesel engines but that could soon change. “The government is increasing the share of dual-fuel cars, which can use both petrol and compressed natural gas (CNG). Around 300,000 vehicles in Egypt already use CNG. This number will likely increase further over the next years,” the paper reports. Egypt is also taking bold steps to replace internal combustion engines with more environmentally friendly alternatives. Last year the government announced an initiative to encourage consumers to replace old vehicles for new ones operating on CNG engines with extended credit facilities among its green program incentives. This has led to China’s Dongfeng Motors planning to assemble up to 25,000 electric vehicles a year in an Egyptian assemble plant. Even the brand make-up of the country’s vehicle fleet is changing. The significant market shares held by Chevrolet/Isuzu, Hyundai, Toyota, and Nissan could be eroded by the entry of European and Chinese brands fueled by preferential import duties. “New vehicle sales in Egypt have recently grown, currently standing at more than 200,000 units per year. Around half of this figure is assembled locally. Egypt is home to notable local vehicle assemblers like GB Auto, General Motors Egypt / Mansour Automotive, and Nissan. While most passenger vehicles are produced for the domestic market, many buses are exported to regional markets,” explains the whitepaper.
EGYPT ON THE RISE Those looking looking for indicators of the growth potential can track the Egyptian visitor presence at Automechanika Dubai which has risen by 20% since 2015.
DECEMBER 2021 35
PARTING SHOT
NEVERA
NIVERNA Rimac brings world’s fastest accelerating production car to the Middle East with EV LAB
E
V Lab, a firm that claims to be a first of its kind omnichannel, multi-brand electric vehicle platform, in partnership with Rimac Automobili, are currently showcasing Croatia-based electric hyper manufacturer’s latest, the Nevera, at the Croatia Pavilion inside Expo 2020 Dubai. The Nevara is powered by a quad-motor drivetrain, where each motor powers one wheel individually. When combined the wheels produce 1,914 horsepower, which is enough to accelerate the car from 0-60 miles per hour in just 1.85 seconds. In addition, the Rimac Nevera has set a new world record for production car acceleration, covering the quarter-mile in just 8.582 seconds. The Nevera is the production-ready iteration of the Rimac C_Two, first announced in 2018. Designed, engineered, tested and manufactured in-house at Rimac’s global headquarters in Croatia, Nevera proudly carries its Croatian heritage in its name and design features. A nevera is a mighty Croatian storm, known for its speed,
ferocity and energy – a fitting name therefore for both the Nevera’s character and ability. Able to transform in a split second from a supple grand tourer to an all-out force of nature, Nevera is charged by lightning much like its namesake. Kevin Chalhoub, Founder & CEO at EV Lab, said the goal is to showcase that electric vehicles are not only sustainable but also at the forefront of technology. “Rimac is doing just that with the first electric hypercar company in the world. Paying homage to Expo 2020 key themes of Mobility, Sustainability and Opportunity, the Rimac Nevera will be on display at Expo 2020 until 31 March 2022, and I encourage everyone who has interest in the future of mobility to come down and see this marvel of engineering,” he said. “The engineers at Rimac have created something that we have never seen before, breaking records and realigning our perceptions of what electric vehicles are capable of, whilst rising to the challenge of pushing the limits of technology as we know it.” After starting Rimac Automobili in 2011 with just a handful of people, CEO Mate Rimac has grown the
company from a specialist component manufacturer to a series production hypercar and technology powerhouse, which employs over 1300 dedicated employees. Recently, Rimac and Bugatti joined forces under the new company – Bugatti Rimac – combining Bugatti’s heritage of design and engineering with Rimac’s ground-breaking technology and agile operations. This joint company are pushing the boundaries of the fledgling electric hypercar industry. “The story of Rimac Automobili is a story of beating all odds in spite of enormous challenges with an incredibly ambitious team set on forging the future of mobility,” said Mate Rimac. Rimac serves as CEO of Bugatti Rimac with the company focused on designing, engineering and producing the ultimate hypercars. He also heads Rimac Technology, a high-performance EV technology supplier to global automotive manufacturers. He added: “We are honored to partner with EV Lab, a company that shares our values of continuous innovation, and pushing the boundaries of what is possible.”
NEXT ISSUE: EKAR’S SECRET INGREDIENT, THE TRUCK AND FLEET AWARDS PREVIEW, TEST DRIVES, AND MUCH MORE!
36 DECEMBER 2021
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