VEHICLES/ TECH / TRANSPORTATION/LOGISTICS
O77/JULY-AUGUST 2O2O
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G N I D N I F T H G I R THE
E C N A L A B
it h w d n u o r g dl e d i m e h t e k i str o n i H d n a AFM 024 1 D F 0 0 5 o the new Hin
N A D E S P U SOUPEDN-NY GETS A SMARTER U TH E 2 02 0 S THE REGION R O F P M A RE-V
Future Vision of Hyundai Commercial Vehicle : Hydrogen Mobility Satisfy the practicality, reliability, and originality of commercial vehicles.
[Xcient Fuel Cell]
[HDC-6 NEPTUNE]
Hyundai Motor is a world leader in the development of hydrogen fuel cell technology, becoming the world’s first automaker to commercialize fuelcell electric vehicles. In 2013, Hyundai launched the first mass-produced and commercially available fuel cell electric vehicle, ix35 Fuel Cell. In December 2018, Hyundai invested USD 6.4 billion to accelerate the development of a hydrogen society. Hyundai has its rich experiences and reasonable processes required to develop the quality vehicles for a hydrogen ecosystem. Hyundai Motor's fuel cell powertrain offers an exclusive propulsion solution for commercial vehicles and it represents the company’s ongoing commitment to sustainable transport. Hyundai Motor Group has begun fostering the growth of fuel cell and other related industries around the world as part of its FCEV Vision 2030. The vision aims at creating a worldwide hydrogen society that leverages hydrogen technologies beyond the transportation sector. Recognized for its technology, Hyundai fuel cell electric bus was successfully test-driven during the 2006 FIFA World Cup in Germany and the first generation of fuel cell electric bus was developed after the World Cup in 2006. In 2009 and 2018, Hyundai completed the development of its the second and third generation of fuel cell electric bus. With the establishment of Hyundai Hydrogen Mobility, Hyundai expects to gain a foothold in Switzerland. In April 2019, Hyundai Motor set up its joint venture (JV), Hyundai Hydrogen Mobility, with a Swiss company H2 Energy. The goal of the cooperation is to expand Europe’s hydrogen mobility ecosystem by implementing the use of fuel cell trucks.
[ELEC CITY Fuel Cell]
By 2025, Hyundai intends to bring a total of 1,600 fuel cell trucks onto the Swiss market and the first 50 ‘Xcient Fuel Cell’ trucks will be delivered to Switzerland within 2020. The ‘Xcient Fuel Cell’ will be delivered to Swiss customers in a 4×2 variant with a total gross combination weight of 34 t from 2020 onwards. The ‘Xcient Fuel Cell’ draws the electricity required for the drive from two 95 kW fuel cells, which convert the onboard hydrogen and oxygen from the ambient air into electrical energy. The fuel cell operation is emission-free – the only by-product is pure water vapor. The system is supplemented by a 73.2 kW battery. A total of 34.5 kg of hydrogen on board of the truck allows a range – depending on the usage – of about 400 km. In Oct 2019, Hyundai Motor revealed two new concepts at the North American Commercial Vehicle Show. The new concepts are to add more detailed ideas about the product under its FCEV 2030 Vision for wide-spread deployment of hydrogen-powered fuel cell technology. Hyundai introduced the HDC-6 NEPTUNE Concept Class 8 heavy duty truck, while Hyundai Translead (HT), a leading trailer manufacturer, announced the launch of its new, clean energy refrigerated concept trailer, the HT Nitro ThermoTech®. The tractor-trailer combination provides a window into the future of the transportation in the U.S. and around the world. HDC-6 NEPTUNE embodies Hyundai Motor’s vision of mobility for a global hydrogen society, applying Hyundai designers’ creativity and the company’s advanced technology.
trucknbus.hyundai.com www.facebook.com/hyundaiCV
Partner in Every Way. Hyundai TRUCK & BUS
CONTENTS
CONTENTS FEATURE
12 / A HAPPY MEDIUM Al-Futtaim Motors’ Ramez Hamdan, on the launch of the new Hino 500 FD1024.
ALSO THIS ISSUE … NETWORK
06 / NEWS FROM THE MONTH
06
10
16
20
24
26
News from around the industry including VW and Ford’s historic partnership. LAUNCHES
10 / SUNNY SIDE UP The 2020 Nissan Sunny represents a substantial step forwards for the venerable sedan. INTERVIEW
16 / FINDING CONSISTENCY T&FME talks to Lee Rabjohn, fleet manager, Audi Middle East, about the importance of the fleet market in the region. FEATURE
20 / FIGHT OR FLIGHT Analyst Subash Joshi of Frost and Sullivan says that the industry must embrace services to thrive in a post-COVID-19 world. WORKSHOP
24 / ZF SNAPS UP WABCO ZF says its purchase of WABCO sill shake up commercial vehicles. FEATURE
26 / GIVING UP CONTROL Einrad discusses its revolutionary approach to autonomous and electric vehicles. FEATURE
30 / SURVEY SAYS... Yallamotor’s latest survey reveals the true impact of the COVID-19 pandemic on sales in the UAE.
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JULY-AUGUST 2020
1
NETWORK
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 EDITORIAL
IS THIS THE END OF ONE SIZE FITS ALL FOR THE REGION? Let’s call it the ‘new normal’. It seems likely that we have finally entered into an era where you can’t assume what works in Riyadh will also work in Muscat or Abu Dhabi. Last month, I had the pleasure of being invited to Automechanika Dubai’s webinar on the future of the aftermarket. I have tried to do my best to condense the major points from a discussion that ranged from Mobility as a Service (MaaS) to the recovery in the China, but one of the most important topics was the need for fleet suppliers to not consider the region as a market where one-size-fits-all. Of course, cross-border or inter-city transporters among you realise that there can be huge differences in customer requirements in the region, but it was telling that Frost & Sullivan’s Subash Joshi believes that, in a post-Covid-19 world, firms are going to have to work harder to understand the needs of your business. I would argue that many fleets have long-learned which suppliers they trust most – often
through building up relationships over years and decades – but, if we are going to spend more online, then we need to have products and services that enhance and not hold back our operations. It is good advice for fleets too, as we find new customers as the digital space grows. Subash also noted that fleets are choosing to run longer intervals in their maintenance routines and, worryingly for the aftermarket, the analyst could see demand for spare parts and servicing decline by nearly a fifth. Given the target audience, it could be read as a challenge for them to change. But, from a fleet perspective, this reflects an ongoing struggle to balance out rising costs and shrinking contract prices. We have just proven how critical we are to nations that needed trucks and vehicles to beat the peak of a ravenous pandemic. And they now are looking to rely on us for more services than ever. In the push to survive, we cannot afford as an industry to cut our corners too sharply.
EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 SUB EDITOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVERTISING SENIOR SALES MANAGER BIPIN SONEJI bipin.soneji@cpitrademedia.com +971 4 433 2856 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com MARKETING MARKETING ASSISTANT AYSHA SULTAN aysha.sultan@cpitrademedia.com +971 4 375 5498 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE ACCOUNTS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 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
STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 JULY-AUGUST 2020
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 2020. All rights reserved.
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CONSTRUCTION
READERS’ COMMENTS
DOOSAN’S NEW XITECLOUD TO AID DRIVE TOWARDS AUTONOMOUS JOB-SITES
Al Mouj Muscat begins construction works on Juman Two apartments
Does anyone remember the story from a few years ago, where people were openly discussing a future where drones and robots would build be able to build our buildings? It
CONSTRUCTION
seemed like crazy talk
Ministry of Infrastructure Development announces $66m worth of projects in Sharjah
then and it probably still is now. This story Doosan’s new XiteCloud smart construction
Analysis: The next generation of workers to improve efficiency of construction
solution to aid drive towards autonomous job-sites - however, does demonstrate that we are moving into
CONSTRUCTION
an era of autonomous
Work completed on 8,500sqm SSAM facility in Al Ain, Mubadala says
equipment operating on our construction sites. Personally, I’m excited to see what the use of drone technology can deliver in terms of surveying, especially when it comes to mapping out earthworks zones on-site. I’m not sure
MACHINERY
how far the technology
UNEC finds success with used Cat equipment from Al-Bahar
can feasibly go, but if we are to see true levels of autonomous vehicles and equipment deployed then data gathering will be at its heart. As they say information is power and this will be true for both
CONSULTANT
KSA’s Amlak International sets price range for IPO offering
04 JULY-AUGUST 2020
Feature: How the UAE supports housing projects despite COVID-19 pandemic
client and contractor. Name withheld by request
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sustainability can’t be bought It can be borrowed - from future generations - or it can be earned from each and every aspect of your operation through a consistently focused and forward thinking mindset. That mindset is a vital part of the Scania DNA - and we’d like to pass it on to you. For more information about our new generation trucks and services, please visit scania.com/ae
NETWORK
VOLKSWAGEN AND FORD UNVEIL HISTORIC PARTNERSHIP / BIG BATTERY DEAL FOR BE’AH CONSTRUCTION WASTE CENTRE OPENS IN SAUDI / OMAN LOGISTICS BOOST
NETWORK
Ford to build new Amarok for Volkswagen AUTO GIANTS REVEAL COMMERCIAL VEHICLES PLANS FOR NEW ALLIANCE INCLUDING A TRADE IN VW’S ELECTRIC EXPERTISE MANUFACTURERS VW and Ford have revealed details on how their new strategic alliance will work, including an agreement for the US company to build a new pickup for the Amarok pickup in return for the use of Volkswagen’s Modular Electric Drive (MEB). The new partners remain competitors in the marketplace but have confirmed that a medium Amarok truck engineered and built by Ford, will be available in 2022. The firms said they will further strengthen the commercialvehicles businesses of both
companies as early as 2021, “with a city delivery van based on the latest Caddy model, developed and built by Volkswagen Commercial Vehicles and later a 1t cargo van created by Ford.” In a statement they added that a highly differentiated Ford electric vehicle for Europe by 2023 based on Volkswagen’s MEB will expand “on Ford’s zero-emission capabilities.” Ford and Volkswagen said that signed agreements to develop their global alliance will meet rapidly evolving needs of their respective customers in Europe
and other regions “by leveraging complementary strengths in midsize pickup trucks and commercial and electric vehicles.” With both anticipating continued growth in global industry demand for commercial vehicles and for high-performing electric vehicles, the companies expect to produce up to a combined 8 million of the medium pickup truck and both commercial vans included in the commercial relationships. “In light of the Covid 19 pandemic and its impacts on the global economy, more than ever it is vital to set up resilient alliances
between strong companies,” said Volkswagen Group CEO Dr Herbert Diess. “This collaboration will drive down development costs, allowing broader global distribution of electric and commercial vehicles, and enhance the positions of both companies.” “This alliance comes at a time of tremendous enthusiasm about the intersection of intelligent, connected vehicles in an eversmarter world,” said Ford CEO Jim Hackett. “This creates a huge opportunity to innovate and solve many of the world’s transportation challenges.”
FORD SAYS IT EXPECTS TO DELIVER 600,000 ELECTRIC VEHICLES USING VOLKSWAGEN’S MEB ARCHITECTURE – STARTING FROM 2023
06 JULY-AUGUST 2020
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NETWORK
KIZAD READIES NEW LOGISTICS PARK LOGISTICS
FIRST CDW FACILITY IN SAUDI ARABIA TO OPEN WASTE MANAGEMENT
The Saudi Investment Recycling Company (SIRC), a wholly owned subsidiary of the Public Investment Fund (PIF), announced that has marked a major construction milestone at its first Construction and Demolition Waste (CDW) recycling plant in Saud Arabia. Located in Al Khair, north district of Riyadh, SIRC’s new plant covers over 1.3 million square meters of land allocated by Amanat Al Riyadh. Once commissioned, it will treat up to 600 tons of CDW per hour and achieve recycling rates of over 90%, a statement from SIRC said. The state-of-the-art facility is in the final stages of construction and will be operational by the end of July 2020, signalling the first step towards meeting the Kingdom’s national ambition of diverting 60% of CDW from landfills by 2035 in alignment with efforts to accelerate the transition to a circular economy. The facility is the first to be developed under the memorandum of understanding (MoU) signed in July 2019 between SIRC, the National Centre for Waste Management, and Amanat Al Riyadh for embracing integrated waste management and recycling activities in the capital. As part of the MoU, Amanat Al Riyadh will organise and direct all CDW collectors and contractors to SIRC’s Al Khair site, the statement said. The CDW will be sorted and processed in a sustainable way to produce recycled aggregates for construction projects and various road development applications, it explained. The new facility will start receiving waste from mid-June and will be fully operational by July-end, recycling 20 million tons of CDW. meconstructionnews.com
Khalifa Industrial Zone Abu Dhabi (Kizad) has announced that it has broken ground on small-to-medium light-industrial warehousing and industrial units within the Kizad Logistics Park (KLP). The move is said to reflect its efforts to meet the growing and diverse demands of the industry. The units will be introduced to the market starting by the end of the year; ‘to cater to increasing demands for ready-to-move facilities’. The launch of the new units is the latest in a series of recent developments at the industrial zone. Earlier in the month, Kizad broke ground on a dedicated Truck Plaza to meet the needs
of truck drivers and the zone’s growing industrial community. “Industrial activity and warehousing demand has been quite resilient, and we are confident that launching these ultra-modern units will propel tremendous growth in Abu Dhabi’s manufacturing
base. Customers are looking for flexible and asset-light options, and we address these needs through the launching of a new modular, pre-built units,” said Abdullah Al Hameli, acting head of Industrial Zones Cluster at Abu Dhabi Ports, the parent company behind Kizad.
MAZOON ELECTRICITY AND BE’AH INK LAB DEAL WASTE MANAGEMENT An agreement has been signed between Mazoon Electricity Company and Oman Environmental Services Holding Company (Be’ah) for the safe collection and disposal of lead acid batteries (LAB), in line with environmental sustainability practices. As per the terms of the deal, Be’ah will be responsible for collecting and transporting LAB from the Mazoon Electricity plant to a certified processing and recycling facility. The move
supports Mazoon Electricity in ensuring its work processes are in accordance with the stipulated environmental laws of the sultanate, says the statement from Mazoon. The Oman environmental services company will also provide Mazoon Electricity with approved LAB waste collection pallets that help hinder acids from leaking. Mazoon Electricity states that it is devoted to work processes and products, which has enabled it to help protect and reduce environmental impact
and secure the wellness, health and operational safety of its employees and community. The firm also says that it pursues business activities that promote environmental protection and conservation. The company says it recognises that acts such as the safe disposal of LAB contributes to preserving biodiversity and creating a healthy global environment. It also plans to support Be’ah’s long-term objective to create infrastructure which is sustainable.
JULY-AUGUST 2020 07
NETWORK
PAT FALLON STEPS DOWN AS COO OF BYRNE RENTAL
Pat Fallon, the chief operation officer of Byrne Equipment Rental is stepping down on June 10 after 26 years with the UAE-based rental company. Fallon, who became COO of Byrne in 2008, joined the company in a business development role, rising to general management positions before heading its operations. According to Byrne, he has expanded the company’s offering and managed its geographical expansion first into Qatar, Saudi Arabia and Bahrain, and most recently into Oman and Kuwait, giving it a
presence throughout the GCC. “I will reflect on my time at Byrne with tremendous pride on what we achieved, along with my sincere thanks and respect to its
team of people across the region who I was privileged to work with on the journey to deliver its enviable growth and success. I hope to see that journey continue in the same vein and I wish everyone at the Byrne Group the very best going forward,” said Falon. Hamad Al Sulaiman, CEO of the group, said: “Pat, as a friend and a pillar of Byrne, will be missed by all of us, and his previous responsibilities will be spread to other members of senior management in a way that will reflect amicable continuity of the excellent job he was doing.”
TRANSPORTER BOOST AS AJMAN BRIDGE OPENS ROAD NETWORK Ajman’s Etihad Road Bridge project is now open as per the Ministry of Infrastructure Development (MOID). The first phase of the project is valued at $14.1mn and is part of the ministry’s efforts to fulfill the needs of people and achieve the happiness of road users, a statement from MOID said. Engineer Abdulrahman Al Mahmoud, deputy director of the Southern Region at the Ministry said the project will help reduce traffic jams by 75%. The project is located
at the intersection of the Sheikh Zayed Mosque. Phase One of the project will increase the length of Etihad Road from the intersection of Sheikh Zayed Mosque and Al Jamaa Road up to the Al Zawra Roundabout by approximately 2.5km, resulting in three traffic lanes in each direction, explained Al Mahmoud. The launch of a series of projects by the MOID reflects the keenness of the UAE’s leadership to achieve prosperity and provide decent lives for Emirati citizens, by
constructing vital roads around the country that will solve traffic problems and prevent traffic jams, said Al Mahmoud. Al Mahmoud pointed out that the ministry was using quality construction materials and creating green roads systems to achieve sustainable development and protect the environment. He added that this is part of the MOID’s strategy to reduce emissions by 30%, leveling operations by 45%, electricity consumption by 50%, wasteful building materials by 70% and construction times by 10%.
H&G ADDS NEW MAINTENANCE TRACKING APP ON-DEMAND SERVICES
Owners and tenants at MAG5 Boulevard in Dubai South can now order home maintenance services from Hitches and Glitches via a new Uber-style tracking app, called MAG FM. The MAG-branded smart technology grants users the ability to browse a wide range of home maintenance packages or ‘customise their own package’ specific to their needs. Hitches & Glitches covers a comprehensive range of maintenance requests and repairs, from electrical and plumbing works to water tank cleaning, air conditioning and swimming pool maintenance, smart home product repairs and updates, gardening, cleaning, and general handyman jobs. MAG’s partnership agreement with the leading UAE home maintenance company also means app users can pay for any repairs or services carried out in their home via Google and Apple Pay for any parts or service carried out in their home. “MAG 5 Boulevard is an affordable, contemporary development with a real community feel and an accent on the modern lifestyle. Therefore, it seemed only natural for us to launch a reliable, convenient, and efficient, technologyled home maintenance solution for the residents there, before expanding the maintenance service to our other developments,”said Talal Al Gaddah, senior executive vice chairman, MAG Lifestyle Development. The service is initially being launched at MAG5 Boulevard but is planned to be then rolled-out across Dubai.
INSIDE THIS ISSUE: A LOOK AT WHY AFM’S NEW HINO 500 REFLECTS A CHANGING UAE MARKET, THE GCC POST-COVID-19, AND MUCH MORE!
08 JULY-AUGUST 2020
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NETWORK
JAFZA REVEALS NEW INCENTIVES FOR FIRMS DELIVERIES
Dubai’s Jebel Ali Free Zone ( JAFZA) has announced a range of incentives to support its customers and new companies affected by the Covid-19 situation to resume activities at the free zone. A statement from the authority said that among the new measures, JAFZA now offers on-demand warehouses on short-term lease with multi-functional storage options, competitive rates and no VAT or customs duties. Warehouses are available from 300sqm to 15,000sqm in size, with water and electricity at no charge. The facilities are also backed up by easier rental terms, such as monthly rentals and deferred rental payments. In-house logistics solutions are also available for cost reduction, with these service including clearing and document processing, 24/7 lease issuance and fast-track EHS approval. Mohammed Al Muallem, CEO, JAFZA, said: “Challenging times call for competitive solutions. At DP World, UAE Region and JAFZA, we’re working on customised solutions for a postpandemic trading world in which our customers pay less for more value-added service support across the board. New business and existing companies will find our investor-friendly, back-to-business ecosystem built around the emerging needs of the markers in a growth climate beyond the pandemic. Being a part of the UAE economy, we assure our customers that we will ensure the continuity of their business in the most uncertain of times by connecting them to new opportunities.” The new incentives come on the back of the 70% reduction in registration, licensing and administrative fees announced since the pandemic lockdown began in mid-March. meconstructionnews.com
OPEC’S LANDMARK LOGISTICS PLAN FOR OMAN LOGISTICS The OPEC Fund for International Development has signed a strategic partnership with Oman to drive development in line with the country’s ambitions to become a major regional logistics hub. The first joint project, the Alsharqiya Expressway Tunnels Project, is already underway to improve connectivity between the north and eastern regions of the country, the OPEC Fund said in a statement. The $130 million project is co-financed by an OPEC Fund public sector loan and the Omani government.
The fund said that the project aligns with the Sultanate’s plans to strengthen the transportation sector to reinforce its credentials as a regional logistics hub. “The Alsharqiya Expressway Tunnels Project is one of a series of investments with this goal in mind, and the OPEC Fund stands ready to provide further support,” the statement added. As part of the project, two ‘twin-tube’ tunnels have been constructed with a combined length of four kilometres. The tunnels safely bypass a critical floodplain, a major town and an area prone to landslides. The ultimate
objective is to provide better access to jobs, markets and public services. OPEC Fund Director-General Dr Abdulhamid Alkhalifa said: “We are delighted to launch a major development partnership with Oman. It is befitting to mark the beginning of our cooperation with such a landmark project that includes the first-ever tunnels in the country and provides safer travel for over one million people. He added: “We look forward to building our partnership and working on many more development projects together.”
NEW RENAULT IS A ‘SYMBOL’ FOR A NEW AGE CARS
The latest model of Renault’s subcompact Symbol car has been launched in the region. Announcing its debut in the UAE, Arabian
Automobiles, the exclusive dealer for Renault in Dubai, Sharjah, and the Northern Emirates, said it was “excited to present a reflection of automotive convenience and comfort.”
Subcompact cars are regarded as fuel efficient and suitable for urban use. The Symbol has an impressive 510-litre luggage compartment for its class, and features front C-shape LED daytime running lights and rear-end lighting signature. The exterior comes with a glossy black and chrome grille, fog lamp embellishers, side mouldings and strips, a b-pillar with shiny black striping, and a new boot door with chrome. It also utilises Renault’s new Media Nav 2.0 multimedia system, an integrated rear-view camera and parking sensors, driver’s side one-touch electric window. JULY-AUGUST 2020 09
LAUNCHES
NISSAN INTELLIGENT MOBILITY-POWERED NISSAN SUNNY COMES TO REGION / ALFA INTRODUCES NEW GIULIA AND STELVIO QUADRIFOGLIO
LAUNCHES POWER BOOST
UP TO 12%
Sunny sides up THE ALL-NEW SMART NISSAN SUNNY 2020 COMES TO THE MIDDLE EAST Following its regional showcase at the Dubai International Motor Show 2019, the all-new Nissan Sunny 2020 is now available in showrooms across the region. The fully upgraded model comes with an exterior featuring Nissan’s V-motion grille and a spacious refresh in the interior. The all-new Sunny 2020 is the latest addition to the growing line-up of Nissan’s renewed sedan models - and features a bold new look, advanced powertrains and technology features. The new generation car builds on this solid foundation and reinforces Nissan’s presence in the increasingly popular B-Sedan segment that is loaded with technology and safety features not usually found in the segment. The new design features
10 JULY-AUGUST 2020
lower, wider and longer exterior dimensions while retaining Sunny’s roomy interior space. It is the latest in the makeover of Nissan’s complete sedan lineup following the flagship Maxima and new Altima. “The Nissan Sunny continues to be a favourite for the region – selling over 474,500 units in the GCC alone since its introduction to the region in 1994,” said Thierry Sabbagh, managing director, Nissan Middle East. “The all-new Sunny 2020 retains the essence of this sedan, while adding a sleek design lift and tech upgrades to provide an enhanced driving experience. The new look is striking and refined in equal measure, and we can’t wait for customers in the region to try out the all-new Sunny experience.”
Introducing an energetic and provocative exterior, Nissan Sunny 2020 uses key styling elements of Nissan’s distinctive “Emotional Geometry” design language which include the new Sunny’s V-motion grille, boomerang-shaped headlamps and tail lamps, kickup C-pillars and floating roof. A recent survey conducted by Nissan shows that the sedans segment retains a strong appeal – especially for younger buyers, globally. Among drivers who don’t own a sedan, 75% would consider buying one now or in the future. For millennials, the number rises to eight in 10. In the UAE, 80% would consider a sedan as their next car purchase. “Safety and technology remain a top priority at Nissan, and the all-new Sunny features Nissan
Intelligent Mobility technology that helps provide front, side and rear safety monitoring and intervention technologies to enhance awareness on the road. This model also makes for an easier and more confident driving experience with seamless smartphone sync options and driver assist technology. This is bolstered by mechanical innovations including an advanced engine design, upgraded Xtronic transmission and an electric power steering system – all of which comes at a highly affordable price, making it ideal for entrylevel buyers,” Sabbagh added. The all-new model comes in three trim-levels, models - S (MT or Xtronic), SV (Xtronic) and the sporty SL (Xtronic). The Nissan Sunny 2020 arrives in the UAE at a starting price for
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LAUNCHES
ALFA REFUSES TO SLOW DOWN
THE ALFA ROMEO GIULIA AND STELVIO QUADRIFOGLIO SPEED INTO SHOWROOMS
IMPOSING DESIGN “The wheels are pushed out, there’s an imposing grille presence, everything about it says lower, wider, longer,” said Giovanny Arroba, program design director, Nissan Global Design Center, Nissan Motor Company.
A SMART ENTRY-LEVEL SEDAN The all-new Sunny features Nissan Intelligent Mobility technology that helps provide front, side and rear safety monitoring and intervention tech.
1.6 S CVT of AED 57,900. With the all-new Sunny, Nissan has reimagined the entry-level sedan with a design that respresents a leap for both the brand and other cars in its class. The Sunny now features lower, wider and longer exterior dimensions while retaining its typically roomy interior space. It is the latest in the makeover of Nissan’s complete sedan
lineup following the flagship Maxima and new Altima. Under Nissan’s “Emotional Geometry” design language, Sunny adapts key elements – such as the V-motion grille, boomerang-shaped headlamps and tail lamps, kick-up C-pillars and floating roof. The result is an entrylevel car that the designers describe as an energetic, provocative and engaging modern compact sedan.
“Today, at a time when circumstances have required a break in the usual fast pace, the Alfa Romeo Giulia and Stelvio Quadrifoglio, with their 510-hp 2.9 V6 Bi-Turbo engine, are not slowing down, augmenting their supercar-level performance for MY2020 with exclusive, brand-new features and a wide range of technology, connectivity and safety upgrades,” says Alfa Romeo on its newest beasts to hit the market. The legendary Italian company is celebrating its 110th anniversary this year and decided to announce its news at a virtual press conference. A necessary but modern convenience. Words not always associated with its oft-lauded cars. The new 2020 Giulia and Stelvio Quadrifoglio feature class-leading performance with the powerful 2.9 V6 Bi-Turbo powerplant in 100% aluminum, “capable of unleashing no less than 510 hp and 600 Nm maximum torque at 2,500 rpm.” Delivery to the wheels is the responsibility of the Alfa Active Torque Vectoring system, assisted in the Stelvio Quadrifoglio by the innovative Q4 all-wheel-drive system. The 8-speed automatic transmission has been calibrated to optimise fluidity and comfort so the vehicles can easily be driven on all terrains. Only in RACE mode do the cars express their full potential with lightning-fast gear changes in only 150 milliseconds, says the firm. Each Quadrifoglio is fitted with a range of systems designed to enhance the pleasure
of driving, and offer the motorist the most authentic, engaging experience behind the wheel. These include Alfa Active Suspension, Alfa DNA Pro selector with RACE mode, and the Alfa Active Aero splitter in the Giulia. The systems are all coordinated and adapted in real time by the Alfa Chassis Domain Control unit, constantly ensuring the ideal conditions for vehicle and driver to make the most of the exceptional performance of the Giulia and Stelvio Quadrifoglio. In the year 20 model and higher, customers can opt to fit the Giulia and Stelvio Quadrifoglio with a new Akrapovič exhaust, another dual mode system, in titanium with carbon fiber tail sections, featuring an even more sophisticated sound. Much-needed improvements have been made for the driver including a new design of the centre console which offers more storage space. The steering wheel and leather-trimmed gear stick are also new, as are the safety belts, now available in red or green. Coming soon, a new upholstery option for the electric sports seats, with perforated leather throughout. SPECIFICATIONS Engine
2.9 V6 Bi-Turbo
Power
510hp
Torque
600Nm
Transmission
8-spd (A)
Drive
AWD
SPECIFICATIONS Engine
1.6l / 4-cyl
Power
118hp
Torque
149 Nm
Fuel Economy (Manual)
17.1 km/L
Fuel Economy (Auto)
19.3 km/L
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FURIOUS BI-TURBO 510-HP POWER JULY-AUGUST 2020 11
FEATURE
BEST OF ALL WORLDS
Al-Futtaim Motors’ general manager of commercial vehicles, Hino and Toyota Material Handling, Ramez Hamdan, on the launch of the new Hino 500 FD1024
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he last few months have proven how vital the trucking and transport industry is to the region. This is particularly true in the UAE where truck operators have formed a lifeline in a country that relies on the transport of essential products and services by road. As the country emerges from its lockdown, its recovery and growth will only be achieved by businesses being able to depend on a logistics chain powered by a fleet of reliable and safe trucks. Enter 12
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the new medium-duty Hino 500 FD1024, the latest edition in a long-line of celebrated vehicles to roll-out of the much-vaunted Koga Plant – the state-of-the art ‘mother plant’ of the Toyota-owned commercial vehicles manufacturer’s global production effort. The UAE market was once dominated by heavy vehicles, particularly during the peak years of construction more than a decade ago, Al-Futtaim Motor’s (AFM) general manager of commercial vehicles, Hino and Toyota Material Handling, Ramez Hamdan, tells T&FME that the new truck arrives at a
We are witnessing higher demand in logistics, FMCG and energy”
time where the market is rapidly changing. “The construction segment is significantly down compared with previous years,” begins Hamdan. “While we are seeing fewer heavy vehicles being sold, we are witnessing higher demand for vehicles needed by sectors such as logistics, FMCG and energy. This is leading to an increase in MCV (medium commercial vehicles) and LCV (light commercial vehicles) solutions.” Experts are predicting that the UAE will be among the countries that bounces back relatively quickly as the COVID-19 pandemic meconstructionnews.com
FEATURE
ROBUSTNESS AND RELIABILITY The Hino 500 FD1024 features improved power and fuel economy. It has been built to be robust, reliable and safe.
comes under control. with the growth of e-commerce expected to accelerate as business and consumer habits evolve. Hamdan says that trend should drive further demand for MCV trucks like the HINO 500 FD1024. “Early into the COVID-19 situation, we witnessed a major increase in the e-commerce sector. That requires creating more and deeper logistics chains, and has led to an increase in MCV and LCV fleet for many companies in the UAE. These vehicles are ideal for distribution and can easily operate on highways and into cities.” meconstructionnews.com
We are aiming to provide peak efficiency all the time, everywhere”
To switch between those two very different environments, the new truck features a high-performance Euro 4 engine and has a proven higher service interval of 20,000 km – using Hino Engine Oil – which Hamdan says makes the Hino 500 more eco-friendly than ever. Long gone are the bare-bones designs of the past too. Reflecting the needs of the sectors it has been built to serve, fleets will be purchasing a truck with an exterior and interior designed with driver comfort and visibility in mind. It also features side-door impact beams, improved mirrors to for a bigger field of vision, front and rear under-run protection, ABS (anti-lock braking system) and the Emergency Guard Impact Safety (EGIS) cabin. The Hino 500 FD1024 has a GVW of 10.4 Ton and a payload capacity of 7.0 Ton. This helps the truck to be the complete allrounder Hino was aiming for, and cope with a wide range of applications such as tipper trucks, curtain siders, reefer trucks as well as general cargo and cement mixers. Hamdan says that this versatility means that AFM can approach a broad cross-section of the market. He produces a long list of potential fleets that could benefit from the new truck. “Our target sectors are logistics, FMCG, contracting, waste management and transport companies which are operating with applications like cargo bodies, chillers, cranes, refuse compactors and recovery platforms,” he says. “One of the first customers to own the new Hino 500 FD1024 was Ajman Police. They needed an aerial platform for rescue operation on high levels floor and light pole maintenance.” AFM is determined to help customer’s meet their requirements. Any new owner, he says, will be plugged into AFM’s well-honed customer journey from initial sale conversations, delivery to aftersales support and body building. “We are the largest distributor of automobiles and automotive products in the UAE with fully computerised showrooms and a highly professional sales advisor team across all the emirates. We provide the right model solution, with proper PDI (pre-delivery inspections) and sanitisation, as well as support of delivery to the customer’s site for new units. “We also operate fully equipped service workshops and parts facilities in every emirate. It is an aggressive customer satisfaction programme, designed to enhance service levels right across the company, from showroom to workshop. We always continue to foster customer relationships,” he affirms.
Peak transportation
Last year’s debut of the robust, flexible and light 300 series of trucks opened up the F&B and fuel delivery market for AFM. It is clear that the heavier 500 is igniting Hamdan’s ambition to now help re-shape the medium segment of the UAE commercial vehicles market. “With the new Hino 500 FD1024, we are aiming to provide customers with optimal performance and peak transportation efficiency all the time, everywhere!” he enthuses. “The roll-out includes changes to not just the aesthetic but also the drivetrain. There is a painstaking attention to detail with the truck that makes it easy to operate and can, in turn, boost the motivation and morale of drivers. This will undoubtedly contribute to the growth of a customer’s business.” Medium duty trucks have traditionally struggled to find a role in the UAE market with many operators preferring to run the heavy vehicles they have relied on for years. But with margins on balance sheets getting ever more tighter, trucks like the Hino 500 are becoming much more attractive as the market moves away from being dominated by the construction sector. “This a transportation solution that offers a powerful performance with a Euro4 engine that is turbo charged with its high horsepower of 245 PS (@2500 rpm) and high torque of 726 Nm (@1500 rpm) but it also has lower diesel consumption in addition to numerous safety features. It’s not only got a well-crafted exterior and interior designed for driver comfort and visibility, but also excels in hot and cold climates, at high altitudes, low altitudes – and almost everything in between – to thrive in almost in any environment imaginable.” Of course, it is the all-important engine which will be relied upon to guarantee this performance. Hino says the six-cylinder J08E delivers increased output, greater cooling, improved fuel efficiency and lower emissions. Through development it has created a refined package which it claims results in resulting in greater efficiencies. “The new engine has been elaborately engineered for outstanding environmental performance coupled with the ability to generate higher power and torque,” explains Hamdan. “It also features the new transmission LX06 (6+1 speed) in compliance with the high torque and is equipped with power shifting option.” JULY-AUGUST 2020
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FEATURE
Safer transport
INSIDE THE HINO 500 FD1024 The truck has been crafted with the driver in mind, including a simple, easy to see dashboard layout, high convenient storage and seat position features that make it easy to get in and out of the cab, says Ramez Hamdan • 8-way adjustable driver seat for improved comfortability. • The leg area in front of the centre seat is redesigned to improve the comfort for the centre seat passenger. • Power windows & central lock for further comfort.
• Enhanced diameter of the speedometer and tachometer with enlarged meter indications • Switch panel is at convenient position for driver. • All functional switches are placed together for easy access of the driver. • Factory fitted AC. • Cup holder and card holder at convenient position. • Ample storage space, multipurpose stand and large flat tray at the
KEEPING THE DRIVER SAFE A newly designed cab meets Hino’s Emergency Guard Impact Safety (EGIS) compliance and is packed with an array of features to protect the driver.
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instrument panel. • New style of inside door handles, integrated handle and lock knob provides ease in door operation. • Changed fluorescent lamp to LED; LED interior light is brighter than the fluorescent lamp, with longer life of 40,000hr and 58 lux (which was previously 46 lux) • The LED is built in the ceiling to achieve a flat surface, and Head clearance is improved from 109mm to 150mm.
Beyond the engine and driveline changes, it is the safety features that arguably elevate the Hino 500 FD1024 over previous models. Stepping into the cab, it offers excellent downward visibility for the driver, with 45o of visibility (20o in an upward direction and 25o in a downward direction). “So, for example, the driver can see the head of a small child (1m high) at a distance of 1.6m,” Hamdan tells T&FME. The cab also meets Hino’s stringent Emergency Guard Impact Safety (EGIS) compliance and is rigidly constructed with a wealth of safety devices such as a SRS airbag (driver), a seat-belt with pretensioner for driver protection, a collapsible steering column, steel plating to provide protection from door impacts, as well as anti-collision steel beams threaded into the structure. Hamdan also notes that the truck has front under run protection to protect smaller vehicles from being run over by the truck. “And the truck’s steering system allows driver to steer vehicle after accident in case of front collision,” he adds. “Tubeless tyres also further benefit the customer, and the New FD1024 comes with tubeless tyres (Size 235/75 R 17.5) to make driving easy and safe.” Hamdan is in no doubt that safety of drivers is a major concern for AFM in ensuring that delivers on the promises it makes to its customers. “For instance, we relentlessly pursue safe braking to protect customer’s cargo, their business and put smiles on the faces of their drivers,” Hamdan says. “This truck has state-of-the-art brake technology that includes brake chambers coupled with ABS to help prevent serious accidents. “This comes as standard to enhance safety and bring peace of mind. ABS contributes by enhancing stable and consistent braking without the wheels locking up when the brakes are applied; consistently maintaining stable controllability and helping the driver to avoid accidents.” As most truck owners know, the brake system is an important element as it helps drivers to stay in control on the road when they are carrying a load; allowing them to slow down, make turns safely and stop when necessary. The Hino 500 FD1024 uses an air-over-hydraulic brake system, which Hamdan notes combines the best benefits of hydraulic and pneumatic systems. “When the brake pedal is depressed, this controls the amount of air pressure. meconstructionnews.com
FEATURE
Hydraulic pressure is then used to apply the brakes,” he explains. Looking ahead
After the disruption of the first half of 2020, AFM is expecting deamand to recover by Q3 and Q4 2020. Looking ahead, Hamdan says the market will stablise and the business is optimistic that there will be further growth by the first quarter of next year. He stresses that the company understands that
it needs to continue to support customers in the months ahead to help them to also recover lost ground and grow. “During this period, we understand that our customers need the maximum support in terms of finance solutions, also in terms of after-sales support by providing mobile workshop to do the service at the customer’s site, and online training for their drivers are being offered. Finance solutions are available from AFM Hino through
45˚
The redesigned cab offers drivers 45 degrees of visibility
our partner banks at special rates and will support them through service contracts, insurance, body fabrication, and more.” Ultimately, Hamdan believes fleets will see a rapid return on their investment through the Hino 500 FD 1024. “Fleets can expect to see a return on their investment within the first month of starting operation, in terms of fuel efficiency, less maintenance and durability and the minimising of breakdowns,” he concludes.
CHANING FLEET HABITS The UAE market is seeing an increase in the sale of MCV trucks as fleet requirements evolve.
OUTSIDE THE HINO 500 FD 1024 A new aerodynamic and stylish design helps reduce air resistance, and ensures high stability, road grip and better fuel economy. The stylish appearance comes with new style of V Shaped Grille, a larger and bolder logo and more visible indication to other vehicles, says Ramez Hamdan Changed design of bumper: Multi-part construction has been adopted for the front bumper. Ease in replacement of individual parts, Cost effective maintenance of bumper. Enables easy access to the windshield, Anti-skid bumper step.
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Headlamps: Upgraded and new design of headlamps combined with flasher, for better visibility in different conditions, bigger flasher at side door. Outside Door Handles: Improved door handle. The outside door handles have been enlarged for an improved gripping feel. The handle button is slightly concave to allow better positioning of a thumb. Accessibility: 8-way adjustable driver’s seat has Improved comfortability and driver
has multiple adjustable options. With easy ingress for tall and short drivers, the driver’s seat side assist grip is extended by 420mm so that a short driver can hold the assist grip easily and securely, the step area is also increased for safer and easier ingress and egress. For short drivers ,the distance between the floor and hip point is decreased by 15mm, and for tall drivers the distance between the pedals and hip point is increased by 48mm. The seating position adjustment range is increased. The seat provides a comfortable driving
position for drivers ranging from 146cm to 193cm in height. Reliability and Maintenance: It is easy to check, service and maintain the vehicle to help prevent accidents and breakdowns with the aim of the keeping the truck on the road with Larger fuel tank compare to previous model for longer hauls. The inlet diameter of the washer fluid tank has been increased from 28mm to 40mm to allow easy refilling of fluid. The installation position of the washer fluid tank has also been changed to a convenient position.
JULY-AUGUST 2020
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INTERVIEW
FINDING CONSISTENCY
Lee Rabjohn, fleet manager, Audi Middle East, talks to T&FME about the importance of the fleet market in the region
E
ven for a man who once rode a 1,000-mile bike ride, Lee Rabjohn, the man who oversees Audi Middle East’s fleet operation, has racked up some impressive mileage on both sides of the dealer channel. The VW Group veteran once swapped a leading role at Audi UK to join one of the country’s largest dealer groups Marshall Motor Group (MMG) as the head of its Group Fleet Division. Passing over two decades of service in the automotive industry, he re-joined Audi last year to manage and develop its fleet sales across the 11 countries, 12 importers and 24 dealer facilities it has 16
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developed in the GCC and Levant region. He tells T&FME that the market in the Middle East presents an exciting opportunity for Audi, a brand that enjoys an elite position, alongside Mercedes and BMW, inside a triumvirate of famous premium marques from Germany. “I am genuinely looking forward to being part of this journey. We have already delivered growth in 2019 and with the exception of the current COVID-19 crisis, will be endeavouring to maintain the momentum and improve the market offer,” he says, adding that Audi is pivoting as the fleet market evolves in his new homebase . “Besides the conventional RAC (Rent-a-Car) and Corporate businesses
We have significantly expanded and rejuvenated our portfolio”
that operate here, there are opportunities for the introduction of new routes to market, the development of funding methods for fleets and also the genuine interest and want to explore and adopt new technologies such as electric and alternative fuelled vehicle and concepts such as Maas (Mobility-as-a-Service).” Like its peers, Audi has endured a turbulent period since the global economy took a hit over a decade ago. However, 2019 showed there are signs of promise with Audi enjoying global growth in deliveries of 1.8%. The fleet side looks even brighter, with Audi fleet and corporate sales outperforming the market in 2019 with a 17% meconstructionnews.com
INTERVIEW
YOUNGEST EVER RANGE Audi has significantly expanded and rejuvenated its range. Lee Rabjohn says it is its youngest model range.
A DIVERSE OFFERING The German giant now has a diverse range of cars from its entry level Audi A3 Sedan through to the luxury end with of the scale with the A8.
increase in volume Year-on-Year. Rabjohn suggests that much of this progress has been helped by a refresh of Audi’s offering to fleets and a growing customer base. “Audi is looking on course for future growth in 2020,” he remarks. “As part of our broad-based model initiative, we have significantly expanded and rejuvenated our portfolio, and can proudly confirm that we will have our youngest model range ever with some familiar models getting an update for the region.” Dealer support in the GCC and the Near East is coordinated from its regional headquarters within Dubai Airport Free Zone and the office is home meconstructionnews.com
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Current total Audi dealer facilities across 11 countries in the GCC and Levant region
for its efforts in dealer development, sales support programs, training, as well as customer engagement through a variety of platforms and programmes. Rabjohn explains that working closely with dealers is fundamental to Audi’s progress in the region. “The fleet and corporate strategy is built through working and supporting our respective dealers in each country linked with a market offer that extends from SMEs through to governmental and large Corporations.,” he explains. “With such a diverse range of cars from our entry level Audi A3 Sedan through to the luxury of the A8, and the driving capabilities
of all our SUV’s we have a car to meet most customers’ requirements. Throughout the GCC region, we supply many types of businesses including SME’s, government departments, corporate organisations, RAC, hotels, and also a number of VIP’s. We are also proud to work with the Dubai Police.” “As a premium car brand, we naturally want to be represented in all the appropriate fleet and corporate sectors as our customers and drivers of our products are our advocates. Through the support of the supplying dealers in each market we are able to provide excellent service throughout the buying process and throughout the life of the car with the aftersales service.” While Audi has a number of customer relationships in every country, Rabjohn notes there is scope and a desire to work with many more. “Through our future products, market offers and network development and support we will be increasing these relationships and are excited to bring our cars to more people. His colleague and managing director of Audi Middle East Carsten Bender asked teams to implement a ‘Consistently Customer’ strategy for 2020 which places customers at the centre of the business. With the market coming to terms with the impact of the COVID-19 pandemic, it’s an approach that seems both timely and necessary. “As a team we subscribe to the strategy. This is the way we are responding to the current challenges and actively shaping changes in the future,” Rabjohn explains. Through it, he says, Audi must value every customer, in every country. “The exciting part about operating in this region is the diverse nature of the culture and the different business and sectors that operate here. As a premium brand we are keen to work with all types of businesses, understand their needs and find a solution for them. Working with each of the dealers in each country we are able to find a solution to each sector or countries requirements.” He continues: “Within this people are fundamental to our success in fleet. The team in each country is supported by Audi Middle East with training and development tools to ensure the teams remain customer centric and responsive to the customer needs. Activity is also key here and as a brand we have a number of initiatives to focus and support this so that in turn we build new relationships, increase brand and product awareness and provide suitable solutions for our customers.” JULY-AUGUST 2020
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INTERVIEW
THE OPPORTUNITY OF/EXPO 2021 DUBAI “Whilst the postponement of EXPO 2020 Dubai is disappointing, the decision is very much the right one in light of the COVID-19 crisis and Audi Middle East support the decision. “The Expo is an exciting prospect for all concerned and will be a fantastic spectacle to highlight and welcome people from all over the world to appreciate Dubai and the wider UAE. “With so many people, companies and governments involved in the Expo, there are also a number of exciting opportunities for automotive manufacturers as well as a great opportunity to highlight new technologies, innovation and sustainability and future mobility. “Audi are already working with a number of companies, organisations and governmental departments to assist them in delivering a great experience to visitors. Further afield there will be an increased demand for rental cars by RAC companies as well as hotel shuttle cars. “We are already working on some exciting projects for this and it will be great to see Audi supporting companies as they deliver their contributions to EXPO 2021 Dubai. More on this to follow in due course.”
Opportunities are taken where possible to bring customers together to highlight new products whilst using the opportunity to gain insight from them on the issues they face and discuss solutions, he adds. “For example, we held a very successful launch event for the Audi A6 in Abu Dhabi late last year, a very important fleet car for many customers in all countries in the Middle East. Going forward the concept of such launches and events will change to reflect the outcome from COVID-19, however, we will have some exciting and innovative ideas to do this.” The A6 launch marked a significant milestone for the company’s fleet offering 18
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REGULATED RESTART Audi is gradually restarting production in Europe as various nations on the continent begin to ease their lockdown measures.
INTELLIGENT FACTORIES The German car-maker started a programme at the end of the last decade to introduce modular assembly with more robots being used on the production line.
although, arguably, it was the 2018 global launch of the Audi e-tron – also held in Abu Dhabi – that marked a start of a new and greener era for a brand keen to move on from the so-called ‘Dieselgate’ scandal that rocked parent company Volkswagen over five years ago. “With its combination of electric drive and sophisticated design, the e-tron creates a new sense of mobility and will be making its way to the Middle East, with some regions already anticipating their first cars as we speak,” explains Rabjohn. “The future is ‘electric’ and Audi is staying consistently true to this strategy by presenting a number of models in the coming years to join the e-tron.
17%
Yearon-Year increase in fleet and corporate sales in 2019
“We are looking forward to the first deliveries of this car in 2020. With the rapidly growing EV infrastructure that we are seeing in the UAE and other markets, the adoption of EV’s will follow suit as any range anxiety is replaced with a desire to drive the latest and cleanest cars. Technology is evolving at a rapid rate. Electric mobility is the first true evidence in many countries of one of the many ways the automotive segment is adapting to being greener.” Rabjohn adds that Audi can help fleets meet tighter regulation, client expectations, and be safer and greener. “Every company and individual has a responsibility to respect our environment meconstructionnews.com
INTERVIEW
and the impact we have on it. Changes in regulations and the adaption and delivery of new technology is also important and we have working relationships with key governmental departments to ensure we adhere to and deliver upon any regulatory changes. “Communication is also key regarding changes in regulations and through our network of dealers plus our own Press and PR team we ensure that customers and the wider populations are kept up to date on the impacts and solutions.” The industry veteran has set about quickly gettting up to speed with the regional market; identifying key differences with his previous stomping ground in Europe.
As a premium brand we are keen to work with all types of businesses”
“The fleet and corporate market is influenced largely by government departments and tenders as well as the RAC market. This lends itself to great opportunities with SMEs and major corporate customers,” he says. “The importance of the oil price, geo-political issues, tourism and the current COVID-19 crisis have a major impact on the market, and we have to be mindful and empathetic in the impact of these factors.” Despite these differences, Rabjohn feels many of the basics are the same wherever you are. “The key to the fleet and corporate segment in any market is relationships
and relationship management. The diverse cultures here make this even more exciting and interesting and look forward to developing these with our dealers in each country. The principles of fleet management are fairly consistent with total cost of ownership, governmental regulation. The company car is also a great staff retention and motivator for employees. “However, as the whole automotive market sector evolves in the coming months and years with new ways of funding and the diverse fleets of the future we look forward to working with customers in collaboration on these and bringing to the fore the best advice and solutions.”
THE CURRENT AUDI MODEL RANGE IN THE MIDDLE EAST “The Audi range is complimented with the Audi Sport models of RSQ3 Sportback, RS4 Avant,
ENGAGING THE MARKET Having also worked in the dealer channel, Rabjohn says the priority is to collaborate closely with fleets of all sizes in the region.
RS5, RS6 Avant, and RS7. A number of these exciting models will be available in the latter part of 2020,” says Rabjohn.
Sedan A3 A4 A5 Coupe and Sportback A6 A7 A8
SUV Q3 and Q3 Sportback Q5 Q7 Q8 INCREASING AWARENESS Rabjohn says the company has launched a number of initiatives to build new relationships, increase brand and product awareness.
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EV SUV E-tron
JULY-AUGUST 2020
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FEATURE
THE
WAY
AHEAD Analyst Subash Joshi of Frost and Sullivan says that the industry must embrace services to thrive in a post-COVID-19 world
A
lthough the last few months have shown how reliant countries are on the fleet and transport industries, they thrive best when the economy is booming. The impact of the COVID-19 pandemic may have sent the global economy into a spin but there is hope that the GCC and the wider Middle East can be among those who come out in better shape. In fact, the signs are already there according to Subash Joshi, VP – Mobility and regional head (ME), Frost and Sullivan. In a wide-ranging overview 20
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of the market on behalf of Automechanika, however, he says that operators and those that supply should be preparing for a new normal where services are key. “We have done a comparison of GCC with the Eurozone, 11 countries in Asia, BRIC and NAFTA country. So, if you look at the Eurozone and NAFTA that are declining but if we compare Asean, GCC and BRIC countries, the GCC is among the fastest growing,” he notes. “In the entire Middle East region, the GCC is the fastest growing. It used to account for about 5.9 percent of the world GDP share back in 1990 and by 2030
In the entire Middle East region, the GCC is the fastest growing”
we’re expecting it to be 2.1% of the market share. Definitely, there is a short-term blip but in long-to-medium period, the GCC will bounce back and we are expecting it to become a $2.8 trillion economy by a 2030.” Part of this bounceback will be powered by the economic diversification that is underway in the GCC. “(Look at) Saudi – they are creating a multi-sector economy by year 2030 and it’s all to become more self-resilient and self-dependent. Oman is already way ahead of many countries in the GCC region and we will see a lot of development meconstructionnews.com
FEATURE
happening in the sector,” adding that other governments remain determined to stick to their plans to develop their economies. “The Covid-19 period has impacted it in a short term and implementation has been delayed. However, we are talking about 2020-2030 and implementation will get back to normal in a year or a year and half time once we move towards the new normal,” he says. “A lot of people were from the region will agree with me that it’s not about setting the vision anymore. It’s about implementing that vision.” From house buying to running a business, location is everything and Joshi suggests that meconstructionnews.com
the GCC, at least, will continue to benefit from its unique geographical importance, particularly to a China, emerging from its own crisis. “The GCC has a strategic location when it comes to the world map and it’s experiencing increasing trade due to the Silk (Belt and) Road and the 21st century Maritime Silk Road. In fact, China by amount is the most important exporter with the UAE,” he remarks. “Chinese banks are also entering UAE along with Chinese companies that contact us like transport, logistics and tourism. And even in the automotive industries, we have seen that brands like Changan in Saudi Arabia. They are among the top 10 brands and one of their models was listed in the top seven selling models in Saudi Arabia in the last quarter of 2019. We have already seen that influence coming and that change in behaviour of the local consumer has come in.” Another major trend that will shape the region is the development of what he calls: a heterogeneous society. He explains: “When I say it’s heterogeneous, I mean in terms of it being very polarised. It’s broken down by a number of things divided by income - 10% of the population in the GCC accounts for almost 68% of the total regional income. It is divided by age and 50% of the GCC’s population is under the age of 30 and by 2025 we are expecting it to increase to 54%. “In Saudi almost two-thirds of the population is under the age of 35. It’s divided by gender and ethnicity. We have more than 200 nationalities living in the UAE and more than 50 nationalities living in other GCC countries. What does it mean for companies? Companies need to understand and evaluate and develop personalised services and products for this heterogeneous society.” The time for a single overall strategy for the GCC is consequently a non-starter for firms looking to work across the region. “What works in Saudi Arabia doesn’t work anymore in the UAE. What works in Oman doesn’t work anymore in Kuwait. The regional strategy can be the same but then country-specific changes or adoption of this heterogeneous society has to come in product and services and that’s a key message from me.” Frost and Sullivan celebrates its 60th anniversary since it was founded in New York city next year. Today, it operates out of 40 offices across six continents. From the start of the pandemic the consultancy and researcher has been exploring the macroeconomic
Implementation will get back to normal once we move towards the new normal”
impact of covid-19 globally as well as how it may continue to affect the regional economy going forwards. It now sees one clear route out of the harm caused by the pandemic. “When we started the covid-19 impact analysis, we were doing three scenarios. However, now we have come down to only one,” he says, adding that the world is facing the worst recession since the global depression started in 1918 due to governments underestimating the impact of Spanish Flu. Understandable given that many countries were still recovering from the First World War but a mistake that sparked a decade of difficulty. “Whenever we talk about recession, we talk about the depth, length and the
THE GROWTH IN USED Used vehicles and leasing is grow ing in popularity with 8 out 10 prosp ective buyers now turning to used vehic les.
THE GROWTH OF USED VEHICLE LEASING Used vehicle leasing has seen growth in individual segments where, even small shops are trying to deliver product at home, says Joshi “These shops require the LCV or delivery vans. A lot of leasing company have re-purposed their vehicles to deliver food at the doorsteps and that’s the segment where these small shops cannot afford new vehicles. So, we have already seen a growth in used vehicle leasing in the LCV side and this will continue to increase
in the near-future” “A survey conducted by one of our partners interviewed about 1,200 customers and prospective buyers in the GCC. Out of those 1,200 or eight out of ten were looking to buy a used vehicle and four out of eight were looking to get a used vehicle on leasing rather than getting a loan or buying it by paying cash up front. “Those changes are already happening in the UAE as well as in Saudi Arabia.”
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timeframe of the recovery - or the speed of recovery - which the recession is going to take. In the current scenario, if I look at the global GDP, we are expecting somewhere about 3% to 8% depth and recovery begins in three to five quarters,” he remarks. “We are expecting recovery to happen by Q4 2020 in terms of global GDP. However, we are expecting a spike in 2021 coming from a perspective that we already have $5 trillion globally in stimulus packages. “A second wave of stimulus packages, which is likely to come in few months which will be focusing on capital spending and a last package might come towards the end of 2020 - and that is what is going to support a faster recovery. The market should stabilised to the pre-covid situation after 2021 and in 2022. “If you look at it from the regional standpoint again, I have good news and bad news. The bad news here is that the US and Eurozone are definitely in a recession. But when we talk about the South Asia side of it, it just might escape the recession and the growth might be more stable in comparison with the US and the Eurozone. We are all aware about the China situation. South Korea has recovered well, and we have already seen growth happening in some of the East Asian countries. “We are expecting the same trend to be followed in the Middle East. When we talk about GCC - these are all analysis based on that we will have the reopening of the economy to the 70 to 80% level by (at least) July and we are not expecting a second wave (of COVID). Otherwise, the recovery will become W curved rather than a V Curve. We are expecting somewhere about 1-3%percent decline in terms of overall GDP and the recovery will take at least on year to come to the normal level. When I say normal, I mean to come to the stable level where we were pre-COVID era.” Joshi believes that incoming data is revealing that some economies are recovering faster than the others in the GCC with COVID-19 and low oil prices applying the brakes on an immediate bounce-back. Although the situation could have been a lot worse. “When we were running our doomsday scenario where the prices can go down to less than $5 or to even negative. Thankfully, that hasn’t happened, and we are forecasting it to be stabilised between 35 and 40 dollars. That will help in the recovery of the economy going forward.” Joshi finds more reasons to be optimistic in the mobility industry’s 22
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SUBASH JOSHI ON THE COVID-19 IMPACT ON CAR SALES “When we came out of the 2008-10 recession (although Saudi Arabia was stable at that point of time), we saw a sharp increase in new vehicle sales which reached about 1.8 million units in 2015, “The oil price dropped, the reduction in subsidies and the reduction in per capita income is finding power and drastically impacted new vehicle sales and the market bottomed up in 2018. In 2019, we saw some recovery and Q3/Q4 were good for the automotive industry. Even January 2020 was better than January 2019. In March sales declined by almost 50-60% approval. “Now we are considering the that opening of 80% of the market will happen by the month of July; travel will be allowed. So
overall, we are we are talking about a U-shaped recovery, where the recovery will start definitely by Q1 of 2021. The next two quarters are difficult, but we’ll see the market coming back to normal by the end of year 2022. “In 2014-2015 in the UAE, there were about 0.8 used cars sold for every new car. In 2019, the UAE was almost equal to UK where for every new car there were 3.5 used cars sold. We are expecting that to stabilise by 2024/25 to about 2.8. However, that is changing the dynamics of the new vehicles that are sold in the markets. There will be more used cars than new. “There will be used car leasing, there will be shared mobility, which will directly impact the new vehicle sales in future.”
historic ability to ride out the challenges set before it, even if it is in for a rough ride. “If you look at the automotive industry, it is very resilient. We have seen it in 20012002. We have seen it 2008-2009. In fact, in 2008 and 2009 OEMs bounced back within a two year time period. However this time it is going to take much longer,” he says. “Covid-19 is definitely one of the reasons for that but if you look at the other reasons... In 2017, we already had the mass expansion of shared mobility services. In 2018-19, we had a trade war and Brexit uncertainty. The normal prediction - or the normal forecast - was by year 2021 we will reach hundred million units, but now we are expecting almost 12-17
A lot of leasing companies are also repurposing their vehicles for food delivery”
million decline in the vehicle sales globally. In terms of percentage that’s about 21-28%. “Going back to 2017 numbers, which is about 93-99 million units will easily take us five years now, which is a much-prolonged recovery in comparison with the previous recessions.” What does this all mean for the fleet industry? Joshi believes that services within mobility like on-demand transport and car sharing will be pushed to the forefront as buying and working habits are re-shaped by the indelible mark left by the Coronavirus. “When we look at mobility as an industry, we have already seen in the last three to four years, the offering has become more about customer-centric solutions rather than car-centric,” he affirms. “Start-ups and new companies they have been working to provide more convenient and integrated modes of transport. As we all are aware, our cities in the GCC like Muscat and Doha are in the top five most Private Car-dependent cities globally. Personal cars typically account for 85% of the total commutes. However, at the same time, countries like KSA, Kuwait were investing in developing the public transport system. “The public transport system will account for 12 to 15% of the total commutes which was about 5-7% in 2019. But this current situation is definitely going to change it in the shortterm and medium-term because commuters will not be convinced of using the public transport during the covid-19 situation.” Joshi continues: “We have already seen that they are moving towards more sorts of shared services. We have seen higher usage of services like E-Kar and Udrive before the lockdown period, and we are expecting that to continue. Customers are moving towards more used vehicle purchases; taking vehicles on leasing. Who can afford to use those services? So, 12-15% reliance on public transport is definitely not going to happen by 2025 and that is good news for the automotive industry.” With UDrive and EKar providing more than 2,500 car-sharing vehicles and Careem, Uber, et al, bringing eHailing vehicles up to 7,000 in the GCC, Joshi believes that integrated and multimodal mobility investment is on track to double by the middle of the decade. In fact, many of the new bus and transport services are ready to be rolled-out. “In the last year, we have seen the launch of UDrive and EKar in Saudi Arabia and the response in the month of November and December was good for such services. We meconstructionnews.com
FEATURE
have demand-responsive transit, which was piloted in 2018 and now it is functioning well in Dubai. Saudi is also preparing towards those services but one of the key pointers here, the testing which is been done,” he notes. “The services being offered definitely have been impacted in terms of slowing down these trials or slowing down the services which have been offered. However, it is a short-term impact. In the medium to long term, we are expecting that MaaS is going to increase in the region.” Consumer and buying habits are changing meaning that we are now, not only less likely to take to the road, but also expect many of our goods and produce to come straight to our homes and offices. Indeed, one of the
What works in Saudi Arabia doesn’t work anymore in the UAE”
major success stories of recent years has been the emergence of fleets that provide food deliveries from online ordering. Joshi says that he expects the market to grown even further. “We have already seen double digit growth in this segment and a lot of fleet buyers are repurposing their vehicle for it,” he says. “A lot of leasing companies are also repurposing their vehicles for food delivery and grocery delivery have seen better utilisation. Services, like mobile services, add-on services, the mechanic on demand and on call.... all these services are getting piloted by many companies in the UAE Saudi Arabia and Oman. We expect these services to become mainstream down the line. The customer preferences are
IT IS NOW NOT ALL ABOUT THE CAR Mobility is moving away from ownership and towards convenience and integrated forms of transport.
REACHING OUT The last year has seen the launch of UDrive and EKar in Saudi Arabia and data suggests the demand will grow.
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changing. They are okay to use services at their home, at their workplace rather than investing their time at a service centre, for example.” “Similarly, on the after-sales parts front… online sales started about five years back in the GCC and it has picked up brilliantly in other segments but in automotive parts, it was limited to a very few parts and accessories. During the lockdown, between March to April we have already seen a huge spike in the DIY Community.” Joshi adds that owners are extending the intervals between servicing and maintenance: “The demand for vehicle servicing and spare parts has been weakening and we are expecting about 16-19% decline.” Unsurprisingly, new car sales are also being hit hard and could be in the throes of a major change spurred on by the restrictions introduced to stop the spread of the Coronavirus: “The average leasing contract term has gone up and web traffic on used car platforms. Taking the example of Dubizzle cars - it was 38% higher in January-March 2020 - and the used car transactions through online platforms has also had an 8.5% increase.” GForces, a company that works with manufacturers and dealers sell online, has seen its a year-on-year sales almost quadruple in Q1 with growth continuing even after restrictions were lifted in May. Joshi says that 25% of the transactions through its platform take place outside of dealer working hours. “In Q12020 online sales were equal to the whole 2019 sales and 50% of the online transactions are a deposit as part of a loan process,” he says before pausing. “This is the key point I would like to highlight because in the UAE, we had a problem where online sales were not supported by banks. But now there is a specific bank that is supporting end-to-end online sales where customer doesn’t have to step out of his house for to make the loan application. He can access everything; approved and the vehicle can be delivered to them at their home. These online purchases are without the customer even entering the showroom. I know 95% of the used cars sold by one dealer in the month of April were sold via an online platform only. “We are not saying that it will be moved a hundred percent online. But there can be online to offline then back on online or it can be online to offline only. The comparison will happen online, for that touch feeling or that test drive is required to be done offline and the customer can come back at the comfort from his home.” JULY-AUGUST 2020
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WORKSHOP
ZF SNAPS UP ITS RIVAL WABCO / SEDIS BOUGHT BY MCB / VOLVO PENTA GETS NEW HEAD / MAGNA TYRE’S NEW RANGE
WORKSHOP
ZF says WABCO acquisition can help shape future ZF PROMISES THAT THE INTEGRATION OF WABCO WILL OFFER CUSTOMERS “A UNIQUE RANGE OF PRODUCTS AND SERVICES” ACQUISITIONS In one of the biggest commercial vehicles mergers in a decade, ZF Friedrichshafen AG (ZF) has completed the acquisition of commercial vehicle technology supplier WABCO. Under the terms of the deal, shares of the NYSE-listed commercial vehicles tech company have ceased trading and its new owner says it can now focus on expanding its commercial vehicle service portfolio and on
operating customer business. “The combination of these two successful enterprises will bring a new dimension of innovation and capability for commercial vehicle systems technology. Thanks to our perfectly complementary portfolios and competencies, we are able to offer unprecedented solutions and services for manufacturers and fleets globally. In this way, we are actively shaping the future of the changing transportation industry,” said Wolf-Henning Scheider,
AN UNPRECEDENTED SITUATION ZF’s CEO Wolf-Henning Scheider said the WABCO purchase will make his company stronger as the industry faces new challenges.
CEO, ZF Friedrichshafen AG. “This acquisition marks a major milestone in the history of our company. With it, we are consistently continuing the transformation in the powertrain and in the field of digitalisation.” WABCO is expected to operate as an independent division named Commercial Vehicle Control Systems. ZF said its new acquisition will continue to strengthen its existing service portfolio and put its customers first. The division will be headed by newly appointed Fredrik Staedtler. Staedtler brings significant CV experience, gained over the past decades working in the industry, most recently as head of ZF’s Commercial Vehicle Technology division, said ZF in a statement. ZF CEO Scheider added: “We are closing this acquisition in an unprecedented social and economic situation. The thoroughly prepared acquisition will make us even stronger for the future once we have overcome the immediate effects of the pandemic with regard to the Covid-19 pandemic and its impact.”
MCB COMPLETES MEA CHAIN PARTS
Mineral Circles Bearings (MCB) has secured a new distribution partnership with leading European chain manufacturer and industry firm SEDIS. The company said the collaboration allows it to distribute and offer SEDIS’s full range of products covering transmission, leaf, adapted, conveyor chains including wheels, sprockets, and disks in the Middle East and Africa market. “This alliance is a great advantage for us considering the burgeoning demand in the Industrial sector. SEDIS cemented itself as a trusted partner in providing robust solutions globally,” said Mohamad Alwan, the head of MCB’s Industrial Division. Given the wider market reach to support, this collaboration is expected to help local and regional business to maximise their business potential at scale, he added.
INSIDE THIS MONTH’S WORKSHOP: A SPECIAL LOOK AT EINRIDE’S AUTONMOUS AND ELECTRICAL DEVELOPMENT, BUYERS SURVEY, AND MORE!
24 JULY-AUGUST 2020
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WORKSHOP
RTA COMPLETES NEW BUS DEPOT
VOLVO PENTA NAMES NEW PRESIDENT ENGINES
Volvo Penta has announced the appointment of Helene Mellquist as the new president of the company, taking over charge on 1 September, 2020. The Volvo Group’s engine and power company said in statement that Mellquist, who is currently president for the European division of Volvo Trucks, has also been made a member of the Volvo Group Management Team. The industry veteran began her career at the group in 1988 and has subsequently held many senior positions at the company, including the top job at Volvo Trucks International. She has also served as the CEO at TransAtlantic AB between 2012-2015. At Volvo Penta, Mellquist replaces Bjorn Ingemanson, who is retiring in September after a long career at the Volvo Group. Mellquist will join Volvo Penta on July 1st, and work alongside Björn before she takes up her new position on September 1st. “I feel extremely inspired to continue to develop this part of the Volvo Group together with the team at Volvo Penta. With the strong product portfolio Volvo Penta has in both the industrial and marine segments, I am taking on this task with great expectations and eagerness,” said Mellquist. Ingemanson added: “After more than 30 years at the Volvo Group and nearly nine years leading Volvo Penta, I am pleased to be handing over to a strong and dynamic leader like Helene. I am very proud of what the Volvo Penta team has achieved both on land and at sea, and I look forward to seeing what the company delivers over the next few years. This is an exciting time at Volvo Penta, and I am sure Helene will do a fantastic job.”
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TRANSPORT Mattar Mohammed Al Tayer, director-general and chairman of the board of executive director of Roads and Transport Authority (Dubai), has announced the completion of Al Quoz Bus Depot to support the daily movement of buses around the emirate. The new facility, which compliments other bus depots in Jebel Ali, Al Khawaneej, Al Ruwayyah, Al Aweer and Al Qusais, serves buses operating on 24 routes all over Dubai. “The construction of this depot complements RTA’s efforts to upgrade the infrastructure of mass transport to encourage people to use public transit means in their daily movement. It will also boost the integration of multimodal transport, reduce the operational cost of buses, and meet the needs of Expo 2020 bus service, which will accordingly
READY FOR ACTION The RTA continues to upgrade its mass transport infrastructure.
ease the mobility of visitors and organisers,” Al Tayer said during a visit where he inspected the operational readiness of the depot, where employees, engineers and drivers were deployed in various capacities. During the visit, Al Tayer heard a briefing about the components of the station, which
includes a residential quarter comprising of 102 rooms to accommodate 368 drivers, food court for 120 individuals, clinic, 18 bay workshop, rest area, plaza, gym, among others. The depot has a parking area to accommodate 273 buses in addition to offices for employees and technical staff.
MAGNA TYRES UPGRADES MA04+ RANGE TYRES
Off-the-road tyre specialist, Magna Tyres, has introduced its first ever ‘three-star’ rigid dump truck tyre in an upgrade of its MA04+ range, increasing payload by 8%. The Dutch-headquartered company announced that it has added the new 24.00R35 to its MA04+ lineup, making it available in the three-star version in addition to the existing twostar one. According to Magna Tyres, the potential of its latest development
is “tremendous”, and it will be the first step in the upgraded generation of Magna’s rigid dump truck tyres. The increase in payload equals an extra 9t in capacity per dump truck, which has the scope to provide a huge increase in productivity when considering the number of cycles made daily, Magna Tyres added. “After years of research and hours of technical analysis, Magna Tyres managed to launch its first ever three-star rigid dump truck tyre,”
said a statement from the tyre maker, adding that the new model is part of its upgraded MA04+ range, which has provided many dump trucks worldwide with superior performance since its introduction, enabling the movement of countless loads of raw materials. The proven tread pattern of the MA04+ has turned out to be the right basis for the further development of the range. “The next level Magna MA04+ ensures customers a stronger tyre, with more rubber in the contact patch, and better and additional steel liners, which will result in increased load capacity. It allows mining operators to increase the productivity and continuity of their earthmoving operations,” said Magna. The first production of the new tyre will be completed in July, Initially in the 24.00R35 size. Preparations have also been made to bring the other rigid dump truck sizes of the MA04+ range to market in its three-star rated version in the near future, Magna said. JULY-AUGUST 2020 25
FEATURE
LOOKING TO THE HORIZON
Our cities are less polluted during the COVID-19 outbreak, but freight emissions are rising. Einride talks about fighting a cleaner fight
D
aily carbon dioxide emissions dropped by 17% in April, accounting for about 17 million tonnes less of CO2 every day. In fact, the European Union has seen total CO2 emissions decline by 20% from 1990 to 2016 as well. Taken at face value, one could be forgiven for thinking our global emissions levels are on the right track at the moment given the international agreements to curb greenhouse gas effects and the ongoing global pandemic. But these figures belie the underlying causes for concern, specifically in the area of 26
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road freight transport. During the same period in Europe, transport emissions increased by 27%, and today, freight equipment accounted for nearly half of the six sectors identified by the Energy Transition Commission as the most difficult to decarbonise. Trucks alone are the fastest-growing source of CO2 emissions worldwide, expected to contribute to a 15% increase in total global emissions by 2050, and accounting for nearly 7% of that total today. Transitioning to electric, as seen with passenger cars, comes with hurdles, both in implementation and in terms of cost. So what’s the solution for road freight transport? Simply put: electric
Electrification is the only way for road freight to reach emission reduction goals�
first, autonomous second. The only way to reverse the trend is through the widespread adoption of electric freight solutions, propelled by the implementation of autonomous transport systems and coordinated by an intelligent freight mobility platform that will make scaled adoption of electric freight transport exponentially more sustainable and cost-competitive. Amplified by a global respiratory virus outbreak, the dangers of current emissions in urban areas around the globe are becoming clear. Air pollution is already a risk factor for many illnesses, and is a factor in hospitalisations and deaths for these meconstructionnews.com
FEATURE
conditions, not to mention the increased risk of severe symptoms from contracting COVID-19. Today, heavy-duty vehicles are the main source of health-threatening NOx emissions in urban areas. As a result, 24 cities housing more than 62 million people will ban diesel vehicles, and 13 of those will ban all internal combustion vehicles by 2030. Incremental improvements to the efficiency of diesel engines are not enough, and in a scenario where a great majority of trucks remain diesel-powered, reaching the EU’s carbon neutrality goals for 2030 or 2050 will be impossible according to the International Transport Forum. Quite simply, electric vehicles (EVs) eliminate these harmful emissions at the source, and autonomous electric transport (AET) can improve the sustainability of these solutions exponentially. Vehicles like the Pod - with no driver’s cab whatsoever - reduce vehicle weight, allow for more design flexibility, increase productivity by nearly 200% over a human-operated vehicle, and allow for even greater scheduling and routing optimisation, enhancing the sustainability of electric freight exponentially. This solution will have an even greater impact in other countries and regions outside of our own, given that the emission reduction potential will increase slightly in Sweden and Nordic countries from 20182030 due to their current low-footprint electricity. The same reduction potential is expected to significantly increase by 2030 in the EU, from 56% to 83%, and in the US from 34% to 73% given the current targets for carbon intensity in electricity production. By 2025, a network of 10,000 electric and autonomous trucks coordinated by our freight mobility platform would offset at least 904,000 tonnes of CO2 emissions per year. According to Dr Mehdi Akbarian Director, Efficient Mobility at autonomous and electric vehicle tech company Einride, “Electrification is the only way for road freight to reach emission reduction goals. Einride makes it possible with intelligent freight mobility and autonomous electric transport (AET) solutions.” Despite the clear benefits, there are still hurdles to the widespread adoption of electric and autonomous vehicles at the practical level. While electrification results in lower operational costs (given the lower costs of electricity compared to diesel), the higher acquisition cost of EVs, as well as their need to charge during a work day, will be a barrier to their scaled meconstructionnews.com
adoption without intelligent planning. There are also infrastructure concerns for implementing electric trucks, let alone AET. Sparse charging networks and a lack of fastcharging options for the longer-distance and higher-volume demands of road freight are not yet up to snuff, making for an operational barrier to those intent on electrification. This is where the freight mobility platform comes in: simplifying the implementation of EVs and AET so that this upfront investment can immediately have the greatest impact on emissions and cost reduction. The embodied emissions associated
17%
Daily carbon dioxide emissions dropped by 17% in April 2020
THE ONLY ROAD TO TAKE “Electrification is the only way for road freight to reach emission reduction goals,” says Dr Mehdi Akbarian.
with battery production of electric trucks has also been a source of contention. While an electric truck starts its life with a higher embodied footprint, its lower operational emissions result in an overall CO2 offset compared to a diesel vehicle. Their life cycle comparison tells a promising story: even with the current electricity mix, an EV will offset its embodied footprint early in its life. This breakeven between EVs and diesel vehicles will materialise after nearly 30,000 km of driving in Sweden and 145,000 km on average for the rest of the world, resulting in CO2 emission savings over their remaining lifetime, typically of around 1,000,000 km. Perhaps the highest hurdle is making the unit economics of electric trucks work in favor of cost-competitiveness with conventional diesel vehicles. Battery-powered trucks must be charged regularly and with a driver in the vehicle, which without proper planning decreases truck utilisation. This makes operating electric trucks with a diesel vehicle mindset cost-neutral at best, and cost-prohibitive at worst. Einride’s platform rethinks electric vehicle implementation in freight, ensuring that manually-driven EVs are operated as efficiently as possible with high utilisation to avoid wasted capacity, accounting for every possible variable. The biggest boost electric trucks can receive to cost-effectiveness is by making them totally autonomous. Removing the driver from the equation improves the business case exponentially, making charging wait times for operators something that does not require oversight and improving the potential of scheduling without having to account for swapping drivers. Our solution can reduce operating cost by up to 20% per kilometer compared to diesel trucks with platform-coordinated electrification alone, while implementing autonomous and electric capability and an operator to Pod ratio of 1:10 would result in an additional 50% reduction in operating costs per day. Whether by personal choice or by organisational or governmental mandate, urban diesel freight will be a thing of the past before we know it. Implementing electric and autonomous transport solutions are not only the most sustainable way forward for road freight, but will also be the most cost-effective with intelligent planning. Einride’s own vision is to make AET the future of road freight through costcompetitive and sustainable solutions, both today and tomorrow. A comprehensive JULY-AUGUST 2020
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freight mobility platform turns the implementation of these solutions from difficult guesswork to intelligent planning and execution. The scaled adoption of this technology is required if we aim to eliminate - and even reverse - the impact that diesel freight has on the environment. “The best way forward for road freight to eliminate emissions and reach global targets while remaining cost-competitive with diesel freight is through the widescale implementation of autonomous electric transport (AET),” says Karin Schlingmann – VP Product, Freight Mobility Platform, Einride. “That means implementing networking software for electric and autonomous transport that considers the unique characteristics of these new freight systems. Just over 50 years ago, we landed on the moon. What is perhaps humankind’s greatest achievement was accomplished with more than a decade of research and development, warehouses full of calculations made with pen and paper, and less computing power than the average person has in their smartphone today. In the decades since, the rapid development of technology has resulted in an exponential improvement in capability, and as a result, the recent NASA-SpaceX mission was largely automated, a far cry from the comparably primitive space capsules of the late 1960s. In contrast, the transport networks we rely on today to move goods and supplies on the road are nearly as analog as ever. Rudimentary software systems and penand-paper solutions remain the norm, coordinating freight that is carried out by unsustainable diesel trucks. In fact, according to 2016 data, road freight transport vehicles in Europe covered the distance to and from the moon over 176,000 times in a year. As a result, the road freight industry is responsible for 7% of all global emissions and expected to increase that figure by an additional 15% if nothing changes. Solutions to this problem exist and are being rapidly developed today - specifically electric and autonomous freight but the question remains: if we’re shooting for the moon, why not make use of technology to get there as quickly and easily as possible? Electrifying and automating road freight may not be as complicated as space travel, but there are copious unique variables to consider and plan for that will make the solution exponentially more effective. The best way forward for road freight to eliminate emissions and reach global targets while 28
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ROUTE PLANNING Einrad believes that fleets of unmanned Pods will begin operating shipping routes autonomously in the near-future.
A VISION OF FUTURE FREIGHT Einrad says it can transform electric freight from a guesswork replacement for diesel trucks to an optimised network of emissions-free transport.
The transport solutions of the future are no longer simply pipe dreams”
remaining cost-competitive with diesel freight is through the wide-scale implementation of autonomous electric transport (AET). That means implementing networking software for electric and autonomous transport that considers the unique characteristics of these new freight systems. Operating electric vehicles (EVs) and ultimately AET requires a coordinated approach to vehicle planning, monitoring, and integration, with variables specific to a particular transport flow. Electric trucks have unique considerations that make them much different to operate than diesel vehicles,
and as such warrant a different approach. Changing this requires thinking beyond the capabilities of current freight networks to what is possible through technology today. Einride designed its own platform to not only to link all vehicles operating in the fleet digitally, but to provide optimised, dynamic route planning based on shipping demands, loading dock availability, and other considerations unique to electrified transport. The intention is to carefully manage the transition from diesel to electric and autonomous vehicles on a massive scale, and as soon as possible. Through machine learning, the more data the platform receives, the more effective it becomes at identifying bottlenecks and coordinating individual transport networks for the unique scheduling, routing and infrastructure demands of electric freight. In order to realise reductions in a freight network’s overall emissions and improve cost-effectiveness, the platform requires tracking and analysing historical routes, driven distances, shipping volumes, and other relevant data. With this information, it can update scheduling, routing, and other protocols to account for relevant variables in a given network. Subsequently, it will highlight areas where electrification would have the most impact, and outline exactly how to make use of existing EV charging infrastructure as well as plan for new additions. As an example of how this works in practice: one would expect that a 100km delivery between two points can be accomplished by an electric truck with 180km of estimated maximum range. However, that expectation fails to take into account the myriad of variables that can affect this range while still managing to maximise vehicle utilisation and minimie operational costs. With a full load on-board, topography variations, traffic congestion, weather conditions, and even whether the driver is using heat or air conditioning in the cabin, actual range can vary significantly. The platform takes all of these factors into account to provide not only detailed live network insights to both supervisors and drivers, but also optimises charging, shift planning, and loading and unloading schedules for maximum efficiency and utilisation. In short, our solution transforms electric freight from a guesswork replacement for diesel trucks to an optimised network of emissions-free transport. But perhaps its most important function is to set the meconstructionnews.com
FEATURE
TIME IS OF THE ESSENCE FOR EINRAD The team at Einrad want to assist the transition from diesel to electric and autonomous vehicles on a massive scale, and as soon as possible.
framework for a future of freight that is both autonomous and electrified. If widespread electrification is like getting to the moon, automation is like landing on Mars. Preparing for the future of road freight – one that is entirely electrified and autonomous with vehicles like the Pod requires thinking beyond the limits of analog computational capability. By using the platform to digitise and process a large set of relevant data on transport electrification and using machine learning to improve its implementation, we can set the foundation
for a smooth transition to autonomy and the additional unique infrastructure and considerations it will require. The digital transport orders and facility update recommendations the platform generates serve as a basis upon which to automate loading, unloading, and charging activities, necessities for the implementation of autonomous freight as no driver will be on board to supervise. Without it, it would be difficult for shippers and carriers to coordinate autonomous electric trucks with the precision that the platform enables, even
7%
Trucks currently contribute 7% of annual global CO2 emissions
if they own and operate them already. Beyond this, the platform is designed to scale functionality for the implementation of systems where one operator oversees and can control multiple vehicles at once. In the not-so-distant future, fleets of unmanned Pods will operate shipping routes autonomously, thereby increasing the freight capacity of an entire network while significantly reducing the operational cost and eliminating emissions. To reap the benefits of this system in the future, transport processes must be digitalised as early as possible, not just for autonomous systems but for electrification as well. In transforming road freight to be not only sustainable and cost-effective but also scalable, we face a collective challenge that will require more than pen and paper to solve. Utilising the technology we have available that is specifically suited to the task means implementing intelligent solutions that make the transition to autonomous electric transport significantly simpler and exponentially more effective. This way, we’re not just shooting for the moon, but pushing the boundaries of what is possible far beyond it.
HOW LIDL AND EINRIDE ARE PARTNERING TO ELECTRIFY TRANSPORT Einride says it will supply electric trucks to Lidl this year as the next step in a long-term partnership to transform Lidl’s supply chain to be emissions-free. Lidl and Einride have been ambitious, since the start of their partnership in 2017, to electrify and automate deliveries to Lidl locations in Sweden. The transformation to a zeroemissions transport network will take place in stages and focus mainly on electrification in the short term, with automation coming in the next phase.
“At Lidl, we intend to be the industry leader for sustainable and completely fossil-free transport by 2025. To enable this, we will now begin the transition to fully electric transport together with Einride” said Carl Seder, Logistics Manager of Lidl Sweden. Initially, the project will focus on the Stockholm region, where regular transport between Lidl’s central warehouse and stores in the area with electric vehicles will commence this autumn. The scope will subsequently be expanded to include more of Lidl’s operations in
Sweden. Lidl’s 2025 goal will serve as the first major milestone in what will be a long-term partnership between the two companies. By then, a significant proportion of all Lidl transport will take place with Einride electric vehicles, as well as many shipments completed without a driver in the vehicle. “The transport solutions of the future are no longer simply pipe dreams. The technology exists today, and forwardthinking companies will lead the implementation. We are proud to work with Lidl and also reduce their
transport costs substantially,” said Jonas Hernlund, CCO of Einride. The platform that makes the transition possible is the Einride Freight Mobility Platform, an intelligent transport planning and execution engine, built to handle transport with all types of vehicles but focusing on electric vehicles – with or without a driver. The platform collects transport data and automatically optimises routes and schedules while providing detailed plans for how to introduce electric transport into the fleet.
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JULY-AUGUST 2020
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FEATURE
BUYING IN A PANDEMIC
Jorge Bialade, YallaMotor’s general manager, and team look at how new car sales has taken a hit
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subsidiary of the Middle East’s leading job site Bayt.com, YallaMotor was launched in 2012 and has grown to become the most visited automotive portal in the region. With the aim of simplifying vehicle research, buying, and selling, it serves over 27,000,000 sessions, more than 138,000,000 page views and more than 13,000,000 car buyers that spend more than 75,000,000 minutes browsing car content that generates more than 1,100,000 leads a year. Providing visitors to the site with the right set of tools to make a well-informed purchasing decision, it offers a dedicated Car Buyer’s Guide that lists prices, specs, and features for every model sold in the market, 30 JULY-AUGUST 2020
along with the latest international, regional and local car news and reviews from the region and beyond. Bundle that with handy shopping tools such as a unique special offers section, an in-depth car comparison tool, and a bustling used car section with over 26,000 always up to date cars, YallaMotor has become the region’s leading automotive portal. The company recently released the findings of a report that delved into buyer concerns as the Coronavirus (COVID-19) continues to disrupt life in the UAE. Its general manager Jorge Bialade, says that the insights come from the answers of more than 1,200 car buyers across the GCC. He says that their responses to the online retailer’s survey is helping YallaMotor to understand their perspectives towards purchasing a vehicle.
The majority of car buyers will take up to three months to make their decision”
“YallaMotor is always at the forefront of understanding car buyers’ behaviours,” he notes. “The current COVID-19 situation hit all of us by surprise and now, our number one priority is the health and safety of our employees and all the members of our community. We are in debt to the heroic efforts of first responders, doctors, nurses, researchers, public health experts and public servants globally and locally who lead with example. Their determination is an inspiration and as an organization, we have taken the necessary measures to adapt to the “new normal”.” According to Bialade, uncertainty is a word automotive industry has been hearing (possibly too much) lately. He argues that the report helps bring clarity to how the pandemic is reshaping the market. “We decided to shed some light on where meconstructionnews.com
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car buyers stand, what they are expecting and how their purchasing cycle has changed.” He adds: “Another statement we heard a lot was: let us wait until things get back to normal. Whatever we used to experience as the “norm” won’t be there anymore. The fact we might be able to go back to our offices, take a walk, participate in events, drive cars and walk into showrooms does not mean our purchasing behaviors won’t change. COVID-19 forced us to rethink the way we operate while slowly and almost without noticing it changed our behaviours. “Although we are unsure how long this uncertainty will last, we hope that these initial results will help guide the automotive sector towards their next plan of action. “Currently, during a time of uncertainty and transition towards new ways of doing things, we are not afraid to say we do not have the answers. However, these initial results could start throwing some light in regards to what will be the real definition of ‘going back to normality’.” Topping the list of questions is a probe into how the COVID-19 situation has affected their car purchasing. As expected, the majority of car buyers who were in the market to purchase a vehicle have decided to hold their decision until there is more clarity on how the situation will be in the near future. 64.5% mentioned, due to COVID-19, their decision to purchase a vehicle has been affected. From a qualitative point of view, this means car buyers will no longer be in the market for changing their car, or else, they are now thinking of more budget-friendly options. With convenience in mind, consumers will be interested in looking into more affordable options and also looking into second-hand vehicles if they were interested in purchasing a new one. More resilient car buyers, a specific group of 35%, have mentioned the current situation has not affected their decision to purchase a vehicle. Unsurprisingly, buyers in the market are now much more cautious towards splashing out on a new vehicles; taking far longer to make a purchase. When it comes to the time frame, compared to YallaMotor’s results from the Car Buying Behaviour report it released last year, 64.59% of car buyers stated they make the decision in less than a month. Now, we can see the majority of car buyers will take up to 3 months (39.19%) to make their decision while 40.35% within 3 to 6 months. meconstructionnews.com
Buyers were also asked this year whether they plan to purchase a new car or prefer to opt for certified pre-owned or used vehicle. YallaMotor also wanted to better understand this preference in regards to a new or used vehicle and the data clearly shows a massive appetite for purchasing a used car. Rounding up the numbers, almost seven out of 10 have the intention of buying a second-hand car, two out of 10 a new car and one out of 10 will consider a Certified Pre Owned vehicle. While it is a known fact that car buyers are relatively price-sensitive, the COVID-19 situation has made that far more evident. YallaMotor has found that 74% of the buyers that answered the survey said that reducing prices will positively impact their decision to purchase a vehicle. 11% would prefer to see attractive loan options. 10% would prefer complementary financial assistance throughout the ownership cycle, such as insurance and servicing. The remaining 5% will consider options with less commitment and monthly payments such as lease and co-ownership. This is certainly something new we have not seen before. Some manufacturers and dealers in the UAE, such as Peugeot, are now offering
60%
6 out of 10 car buyers would consider purchasing a car online
74%
Buyers that answered the survey said that reducing prices will positively impact their decision to purchase a vehicle
interested buyers the opportunity to test drive cars at home without the need to visit the local showroom. These initiatives appear to in line with YallaMotor’s own findings. While previously 50% of car buyers were willing to visit the showroom at least twice before purchasing a vehicle, things have changed. Now, 56% of car buyers are not willing to go to the showroom to check the vehicle. This brings a massive potential to online tools and alternative ways to engage with customers. For instance, only 18% mentioned they are not willing to test drive a car at home. The remaining 82% are open to doing so as long as vehicles have been sanitised, they have a sales consultant with them, and they can book it online. This also triggered another opportunity such as an online purchase. At this point in time, 6 out of 10 car buyers will consider purchasing a car online. Deeper information that might be available online through third-party websites plus a concierge service to the customers in order for them to test the vehicle will be essential for the users to purchase the vehicle online.
FINDING PERSPECTIVE YallaMotor general manager Jorge Bialade says the survey is helping the online retailer’s to adapt to a’new normal’.
HOW YALLAMOTOR WORKS WITH BUSINESSES For businesses, YallaMotor provides the most comprehensive and flexible choice of advertising solutions to engage with all car buyers in the Middle East whether you are an OEM, Distributor, Used Car Dealers, Certified Pre Owned Dealer, Digital Marketing Agency, PR Agency, Workshop and or Maintenance Company. Working with more than 500 companies across the World it also provides stakeholders with market insights, data, technology solutions and digital and social media marketing consultancy.
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Thermo King and BPW close to realising zero-emission refrigerated trailer dream
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hermo King and BPW say their collaboration to develop a new economical and ecological refrigerated trailer solution can transform the way refrigerated trailers are powered. The companies have revealed that they have spent the last year, working together to “create a sustainable power solution for refrigerated trailers that will not only be environmentally friendly but also bring transport companies substantial cost savings.” Both companies are convinced that they will soon deliver to market a reliable and efficient solution “making zero-emission trailer transport refrigeration a reality.” In a joint-statement, the partners said
that they will be communicating major developmental milestones over the coming months with a sneak-preview later this year. “For decades, Thermo King has considered it our responsibility to lead the refrigerated transport industry and always deliver solutions that our customers expect from us,” said Francesco Incalza, president of Thermo King Europe, Middle East and Africa. “We’re leaders in electrification, we have the largest range of zero and low-emissions solutions in all segments of the market. “Our customers value us for our commitment to the continuous advancement of the industry. The partnership with BPW perfectly reflects this approach and brings us closer to meeting our 2030 sustainability goals and combatting exhaust, CO2 and noise pollutions in our industry.”
Thore Bakker, General Manager Trailer Solutions & Mobility Services at BPW, adds “In times of climate change, new traffic regulations in urban areas, the transport industry is more than ever challenged to find new ways of doing business economically and ecologically. “Together with Thermo King, BPW is addressing the urgent problems of refrigerated transport, whose refrigeration units are still powered by a separate diesel engine today. By combining our competences as technology leaders for freight transport solutions we can make temperature control systems more environmentally friendly through new energy concepts in the trailer. This will also have a positive implication to the Total Cost of Ownership of the freight forwarder along the transportation supply chain.”
NEXT ISSUE: WHY SAUDI ARABIA IS OUTSTRIPPING THE GCC MARKET, A6 TEST DRIVE, NEW TRAILER TECHNOLOGY, AND MUCH MORE!
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