Truck&Fleet ME May 2021 by CPI Trade Media

VEHICLES/ TECH / TRANSPORTATION/LOGISTICS

O86/MAY 2O21

MIDDLE EAST

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

E H T O T BACK

! E R U T U F

in n o i t p o d a l l l ce e u f n o t s e t la What is the and r e l m i a D s the region a ? c i r t n e c l l e C as Volvo unite

A R E W E N TH EY THE FUTURE IS BRIGHT WH

AL M ILERS IN F E H T R FO

Date

Venue

27 May

Radisson RED

RADISSON RED / DUBAI / UAE

The future of fleet in the GCC and the route to a sustainable industry 27 May 2021

About the

T&F Conference

More than ever, fleet operations must control their costs and remain competitive in a highly dynamic market. Those that will succeed will be those that can be agile and open to new ideas.

Are you ready for the new normal? The second edition of our flagship conferences will continue to help fleets in the UAE run leaner, safer, more efficiently, while making the most of the new normal.

Ultimately, only fleets armed with up-to-date market information and a deep understanding of the cutting-edge technology and services available to them will have everything they need to be successful.

After a successful inaugural event and a turbulent 12 months, the demands on fleets to be key players during the pandemic and the rebuilding to follow have never been greater. But this is also an exciting time where opportunities such as e-commerce, last mile delivery services and digitalisation can take an operation to another level.

Networking

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Opportunity

This event presents you with an opportunity to connect with industry decision makers and influencers. There are several ways to sponsor, from interactive live polls to session background branding, and from lead generation campaigns to presentations.

Event Partners

Complimentary

GOLD SPONSOR

Content

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Stephen White | +44 7541244377 stephen.white@cpitrademedia.com

Raz Islam | +971 4 375 5471 raz.islam@cpitrademedia.com

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PRESENTED BY

Thank you to all our amazing partners and sponsors for your support.

CONTENTS

CONTENTS FEATURE

28 / HYDROGEN TO GO FULL POWER? Insight into how a legal framework is needed to spur hydrogen adoption in the region.

ALSO THIS ISSUE … NETWORK

06 / NEWS FROM THE MONTH

Al Faris opts for the Arocs SLT as Gulf Ready Mix goes for UD Truck’s Quester. LAUNCHES

10 / THE SUPER HUMMER This month’s launches includes the “tool for any situation” Hummer EV. INTERVIEW

12 / GREEN BY 2040 T&FME finds out about Renault Trucks’ strategy to end conventional truck production. INTERVIEW

16 / TG IN THE GCC T&FME talks to MAN Truck and Bus Middle East’s Joerg Mommertz about the new launch. SPECIAL REPORT

2O / THE LAST MILERS Why delivery vans are set to dominate the e-commerce and delivery sector. FEATURE

26 / A NEW NISMO Nissan on why it chose to use Dubai for the global launch of the Nissan Patrol NISMO last month. MARKET ANALYSIS

32 / SUV REIGNS SUPREME Glasgow Consulting Group’s Vishal Pandey on how data is revealing how the UAE market stacks up against the rest of the world.

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MAY 2021 01

WELCOME

GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 EDITORIAL EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377

TRUCK AND FLEET CONFERENCE: A CHANCE FOR CHANGE In the midst of the whirlwind 12 months we have all faced professionally and personally over the last year, transporters, delivery drivers, logistics carriers and hauliers have dealt with their fair share of pressure. The industry has been busy – and often rightly lauded for its efforts – but that doesn’t mean it has been hugely profitable. The problems of increasing costs and diminishing returns were there before the Covid-19 pandemic tore a hole into our business strategies and now we have to navigate an uncertain time while we wait for our lives to bounce back to normality. This month’s Truck & Fleet Middle East conference, which is taking place at the Radission Red Hotel in Dubai on 27 May is an opportunity to take a moment to reflect, but also a chance to plot out the way we can travel through the disruption we are facing and find a clear way through. You may also see your next truck featuring in the accompanying exhibition. I have always advocated that events like these are an opportunity for stakeholders to air their issues and thrash out solutions. I’m hoping that we will be albeit to use the few short hours of the conference (the online coverage and discussion at truckandfleetme.com notwithstanding) as a

starting point for greater collaboration and communication between fleet owners and operators, as well as the OEM and distributor representatives that will also be in the room. Whilst we will be doing the usual overviews of the market and digging into the technology trends to enhance fleet operations, I would like to think this is a great time to look at the struggle to get fleet financing and how to juggle your resources to keep your vehicles on the road. These are issues that can seem like dead ends to a business (it’s the classic conumdrum: you either have the money, resources and people or you don’t) but Covid-19 proves it is in everybody’s interest that there are successful and profitable fleets in the market. I want us to get past the buzzwords and come up with some meaningful solutions on how to ensure your fleet can continue to win new business in its wheelhouse but also be prepared for the opportunities in retail, hospitality and deliveries that may not have been there before. If you haven’t done so already, I urge you to register online to participate. Feel free to drop me an email if you prefer, but whatever you do not miss this chance. Especially if, like me, you think we can do better and be better than we already are.

DEPUTY EDITOR PAUL GODFREY paul.godfrey@cpitrademedia.com ADVERTISING SALES MANAGER BRIAN FERNANDES brian.fernandes@cpitrademedia.com +971 4 375 5479 SALES EXECUTIVE MINARA SALAKHI minara.s@cpirtrademedia.com +971 4 375 5470 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com 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 MAY 2021

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ONLINE

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

CAN WE TRULY COLLABORATE?

Azizi Developments awards multimillion dollar shoring contract for Riviera

I just read your column in Big Project e-Magazine April 2021 issue, and I liked the topic speaking about ‘Collaboration’ and totally agree with you. I just want to add a humble comment saying that

CONSULTANT

‘Collaboration’ is a way of

Dubai CommerCity launches offices and logistics units in first phase of development

life and a good effective one takes place based on two key elements ‘Trust & Respect’ both ways between

PROJECT PROFILE A Future from the Nile

collaborators, lack of these two elements will result in no collaboration and/or lack of a two ways action. As for the ‘Supply Chain’

CONSTRUCTION

Nakheel opens new mosque at Jumeirah Park

indeed it took a massive hit due to the Covid-19, sadly most of the concerned stakeholders in the industry didn’t show any cooperation & support in this area, and accepted no exceptions, that really was hurtful to

CONSTRUCTION

many industry players being

Acciona announces completion of Jebel Ali SWRO desalination plant

small, medium and large entities. Governments or Industry intervention in this matter advisable as you have stated. Thank you for your good article and words passed on this to the industry through your Big

CONSTRUCTION

Heriot-Watt University in Dubai opens new campus in Dubai Knowledge Park

04 MAY 2021

ANALYSIS Refurbish to recover

Project media platform. Name withheld by request

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NETWORK

AL FARIS PICKS NEW AROCS SLT / TALABAT FOCUSES ON DIVERSITY GULF READY MIX DEAL CALLED A BREAKTHROUGH / HYVA AFI SUCCESS IN KSA

NETWORK Al Faris Arocs SLT deal a milestone for MB Trucks LATEST GENERATION SLT FROM MERCEDES-BENZ TRUCKS CHOSEN BY HEAVY TRANSPORTER TRUCKS Mercedes-Benz Trucks is celebrating a milestone in the region after two new units of the latest generation of Arocs SLT, the first in the Middle East and North Africa, have been handed over to leading heavy transportation and heavy equipment rental company Al Faris Group. The heavy-duty tractor unit supplied by Emirates Motor Company (EMC) is a MercedesBenz Arocs 4058 AS 6x6 SLT and packs Mercedes-Benz Trucks’ most powerful engine: the six-cylinder in-line OM 473 engine with 15.6 l

displacement with an output of 578 hp (425 kW), offering torque of 2,800 Nm in Euro 5 emission norm. To take to the road with transport loads of up to 250 tonnes, the truck is equipped with the automated Mercedes PowerShift 3 gearshift system and G 280 transmission with 16 gears and a fluid coupling. “We have performed numerous heavy transport operations for abnormally sized objects for more than 25 years and it has always been our priority to provide safe, innovative, and reliable solutions for Heavy Lifting, Heavy

Transport and Energy Projects,” said Hillary Pinto, managing director, Al Faris Group said during the handover ceremony. “When it comes to heavy transportation, the Arocs SLT meets the demands and our high standards. The addition of these 2 new trucks will add value to the company and we look forward to our long-term partnership with Emirates Motor Company.” The Arocs 4058 AS 6x6 SLT is equipped with the turbo retarder clutch, which increases the dynamic performance and enhanced stability of the vehicle. This feature

combines a hydraulic start-up clutch and a retarder in a single component. It is compact in design, light in weight and serves as a highly effective permanent brake. The turbo retarder clutch allows sensitive and wear-free moving off as well as manoeuvring at the very lowest speeds. A significant reduction in the time required to discharge the fluid in the turbo retarder clutch delivers faster subsequent shifting and faster acceleration. The fast build-up of torque prevents the vehicle from unintentionally rolling back when pulling away on uphill slopes.

RTA DRONES HAVE CONDUCTED 300-PLUS INSPECTIONS, RECORDING 580 FLYING MINUTES AND RESULTING IN REPORTING 48 OFFENCES.

06 MAY 2021

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NETWORK

AL MASAOOD: GULF READY MIX DEAL A ‘BREAKTHROUGH’ IN ABU DHABI

TALABAT TARGETS 300 FEMALE DRIVERS FLEET

Leading food delivery and q-commerce app talabat has pledged to hire 300 female drivers to its delivery fleet in the UAE by end of 2021 in efforts to improve gender equality and provide women with wider employment opportunities across all functions in the organisation. As of today, talabat welcomed 14 female delivery riders across Abu Dhabi, Dubai and Sharjah to the fleet. Women currently account for 67% of marketing roles, 43% of the sales force and 40% of management positions at talabat UAE,reflecting the great strides towards empowering women in the workplace and promoting overall gender balance. talabat’s pledge comes as the UAE continues to spearhead equality in the region in the fields of economics, government, education and health, plus also establishing a ‘Gender Balance Council’ to offer women equal opportunities in the public sector while enhancing work environments across the nation. These efforts have led the UAE to rank as 1st in the Arab region, and 26th globally for gender equality on the UN Development Program’s Gender Inequality index. Jérémy Doutté, VP UAE, talabat, believes that it is important to challenge stereotypical gender-norms, and the addition of female drivers to talabat’s fleet is an example of the diversity that it is proactively encouraging. “We have received an outpour of positive feedback when we announced our first female delivery driver. The community’s support has been truly encouraging and we believe that this is another step forward in closing gender gaps and increasing female representation at all levels.” meconstructionnews.com

TRUCKS UD Trucks and its Abu Dhabi importer Al Masaood Commercial Vehicles and Equipment have hailed the sale of eight units of the Quester CGE 420 to Gulf Ready Mix LLC (GRM) as a breakthrough in their attempts to break the dominance of European trucks in the local construction market. The 8×4 truck is equipped with concrete mixer with a capacity of 12 cbm and is described as the first in a new generation of UD Trucks specifically developed for the world of heavyduty transportation. The agreement is a significant milestone for Al Masaood and UD Trucks, as it formally marks their strong entry into the booming local construction segment, the firms said in a statement. It is also the first deal by Al Masaood that involves one of the “toughest superstructures in construction field”. “The deal reflects the local market’s robust trust in Al Masaood’s ability to deliver high-performing products and holistic solutions according to global standards,” said Mohamed El Zeftawi, general manager, Al Masaood Commercial Vehicles and Equipment Division. “It

confirms our commitment at Al Masaood, together with our partners at UD Trucks, to support customers in ‘Going the Extra Mile’ as we always promise. “We thank GRM for its confidence in us and for the opportunity to provide the company with eight Quester units to support its strategic growth plans in the UAE and the region.” Al Masaood Commercial Vehicles and Equipment’s team conducted detailed studies into GRM’s technical and commercial aspects as part of the deal. It also provided training on how to maintain the trucks in optimal condition and performance. GRM is also using a telematics system to monitor the fleet through easy monitoring and tracking of the vehicles. Al Masaood Commercial Vehicles and Equipment’s spare parts department will also be “on hand to guarantee and secure the availability of parts, whenever and wherever they are required”. “Closing the deal with Al Masaood CV&E and UD Trucks has been a positive experience for us. We have total confidence in the capabilities of the new trucks

and Al Masaood’ s continuing support,” said Eng. Ahmed El Hadidy, general manager, GRM. “Since its establishment in 1998, GRM has been deploying the latest production technology in line with the highest quality standards. This collaboration is vital to our goal to expand our presence in the region as one of the fastest-growing providers of ready-mix concrete.” Mourad Hedna, President of UD Trucks Middle East, East and North Africa noted that “Since the introduction of the New Quester reaching to 46 Ton GVW on 8×4 chassis back in 2016, we have been able to penetrate new segments that were previously only dominated by European manufacturers. “The Middle East conditions are tough and very demanding with various rugged terrains and high temperatures and payloads. Consequently, before the launch of these models, we tested them in real conditions for over a year in Qatar to ensure the new trucks meet the needs of our customers. Today we are honored to have our partner in Abu Dhabi, Al Masaood deliver 8 units of the Quester – CGE420 8×4 equipped with 12 CBM concrete mixers to GRM.”

MAY 2021 07

NETWORK

1K PER DAY TRUCK IRAQ BORDER DESIGN READY LOGISTICS

Khatib & Alami (K&A) says it has completed the design for a new land port in Safwan, on the Iraq-Kuwait border. Subject to authority approvals, the project will enhance the passage of commercial goods and people by increasing capacity to around 1,000 vehicles per day, with the seamless separation of traffic between commercial goods and travelers, a statement from the consultancy said. It added that the final designs and plans for the 727,500sqm site include industry-leading

technologies for customs transactions and goods clearance. These will improve the experience of travelers, increase the efficiency of customs revenue collection and reduce

overcrowding, while maintaining preventive health measures. Fadi Tannir, K&A’s project manager for the new land port, said: “This is a strategically important project for the Basra Governorate, which will stimulate economic growth and long-term prosperity in southern Iraq, while energising tourism activity between Iraq and other Gulf countries. “Our design will transform the Safwan border crossing, introducing much-needed infrastructure to enable the swift and efficient entry and exit of goods and people.”

HYVA DELIVERS 45 TRUCK CRANES TO SAUDI FLEET FLEET Hyva has reported a delivery of 45 truck cranes in Saudi Arabia, with the Riyadhbased customer opting for the Dutch manufacturer’s HB 50 and HB 60 cranes. The units were delivered by Alaa For Industries (AFI), Hyva’s partner in Saudi Arabia, and will be part of a fleet of commercial vehicles handling general cargo throughout the kingdom. Hyva said its HB series of articulated cranes are extremely versatile and easy to operate. With a maximum outreach of 11,90m and a maximum lifting capacity of 6.58t, the HB60 model is the ideal solution for

robust, versatile applications, said the manufacturer. Hyva also said the customer’s decision to buy its cranes was based on the reputation of both the product as well as on AFI being a strong Hyva partner, “a onestop-shop for quality hydraulic transport solutions with a full-fledged after sales support team to back the services throughout the region”. AFI has multiple satellite service offices throughout Saudi Arabia and other branches in Kuwait, Bahrain and Qatar to support the after-sales requirements of its customers throughout the region.

Mohammed Ali Al-Khayyat, general manager, AFI, said: “This is a very important order. It is significant in size, and, most importantly, it recognises the quality of the Hyva brand and the premium service reputation that our customers recognise between Hyva and AFI. We have an extensive network of satellite offices around the country which offer true value to our customer as well as convenient and fast service to customers to help keep their operations running smoothly.”

MAMMOET COMPLETES 500T OIL RIG TRANSPORTS FROM THE UAE TO OMAN HEAVY-LIFT

Mammoet has transported two pre-assembled onshore oil rigs and accessories, each weighing up to 471t, by sea and land from the UAE to Oman under a contract by the sultanate’s Khimji Ramdas Shipping (KRS). The global heavy lifting and transport specialist said it had been contracted by KRS to safely deliver the rigs from its fabrication facility in Dubai’s Jebel Ali to the site in Nimr, Oman. Manufactured in the UAE, the new-generation, fastmoving rigs are a new addition to the current fleet of Oman’s largest drilling company - Abraj Energy Services SAOC. “Shipping of oversized and heavy cargo requires specific expertise, as infrastructure limitations create bottlenecks that demand alternative transport approaches. At 37.7m long and 10.7m high and up to 471t, the sheer size and weight of the pieces meant Mammoet had to compose an optimal route for the cargo by performing the necessary route studies and obtaining required permits,” said a statement from Mammoet. Advanced preparations were needed, added the company, including road infrastructure modifications to temporarily replace over 100 streetlight poles and traffic signals, plus construction of temporary bridges protecting underground electrical cables and pipelines, to ensure transport safety.

INSIDE THIS ISSUE: RENAUT TRUCKS COMMITS TO GOING FULLY ELECTRIC, MAN ON ITS NEW TG RANGE REGIONAL LAUNCH, AND MUCH MORE!

08 MAY 2021

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NETWORK

KSA’S TRANSPORT SECTOR EYES GROWTH

AMAZON SHIPS 1MN MEALS ACROSS THE ARAB WORLD FLEET

Amazon is set to contribute to more than one million meals to support families in need across UAE, Saudi Arabia, Egypt and Jordan during the Holy month of Ramadan. Partnering with regional food banks and charities, Amazon is providing a combination of products, services, and monetary donations, including grocery supplies and packaging materials. The retail giant says this will result in approximately 1,074,080 meals reaching underserved and underprivileged families in the safety of their homes, following the necessary social distancing and safety guidelines in each country. Hundreds of Amazon employees will work alongside community partners to pack food hampers at Amazon’s Fulfillment Centres across the Arab World, with Amazon leveraging its scale to support the community. “In light of the month of Ramadan, Amazon is delighted to continue supporting food charities across the region,” said Ronaldo Mouchawar, Vice President of Amazon Middle East and North Africa (MENA). With our ability to innovate quickly and experience in logistics and delivery, we are helping to get more than one million meals into the hands of those who need them the most throughout the month of giving.” Among its regional partners is the UAE Food Bank, head of Food Safety Department at Dubai Municipality and Member of the UAE Food Bank Committee Iman Albastaki said: “The UAE Food Bank’s mission is to help the people in need while reducing food waste. Ramadan has always been the month of giving and helping others, and it is our pleasure to be partnering with Amazon this Ramadan.” meconstructionnews.com

TRANSPORT Saudi Arabia’s Investment minister Khalid Al-Falih has stated that the country’s infrastructure and transportation sectors are seeking to attract around $420bn in foreign investments over the next 10 years. The minister made the remarks at the US-Saudi Arabia Business Leaders 2021 Virtual Forum. The two-day event was organised by the US Chamber of Commerce in Washington, according to a report by the Saudi Gazette. Al-Falih encouraged US businesses to invest in Saudi

Arabia as the Kingdom offered a variety of attractive opportunities across different sectors. He explained, “Saudi Arabia is opening up multiple new industries as an integral part of the Vision 2030 transformation, including clean energy, mining, mobility and logistics, tourism and quality of life, ICT, healthcare and life sciences & biotech.” The minister also praised the role played by the G20 countries in mitigating the impact of the coronavirus pandemic on the global economy. “Swift actions

taken by the Kingdom, the US, and others in the G20 have contributed to an enabling global economic and investment environment,” Al-Falih noted. In addition, he highlighted the resilience of the Saudi economy in the face of COVID-19 related challenges and said that the Kingdom has taken effective measures that increased foreign investments by 40%. He concluded by saying that the Kingdom is looking to establish and develop partnerships with green energy companies in the United States.

ISUZU COMPLETES $2BN UD TRUCKS ACQUISITION OEMS

Isuzu Motors has completed the purchase of UD Trucks from the Volvo Group for an enterprise value of $2.1 billion. The transaction completes a deal which was first announced in 2019.

The latest models of the Japanese brand are heavily influenced by Volvo Group technology and the two firms have launched a now operational commercial vehicles strategic alliance with the “aim to capture opportunities in the

ongoing industry transformation.” The new organisation will operate a Joint Alliance Office, with facilities both in Japan and Sweden. Both firms stated that the operation will remain operational for a minimum of 20 years and “is intended to address possibilities and challenges of the logistics industry of the future, maximising value and benefits for customers as well as for society.” Martin Lundstedt, president and CEO of the Volvo Group recently commented: “I have high expectations on this strategic alliance. I am confident that the strategic alliance will create the conditions to continue to develop UD Trucks to a new level within Isuzu Motors.” MAY 2021 09

LAUNCHES

THE HUMMER SUPER TRUCK TAKING THE EV SUV TO NEW FRONTIERS / HYUNDAI MOTOR COMPANY OFFICIAILLY REVEALS ITS NEW MPV LINE-UP

LAUNCHES ELECTRIC PACE

100KM/H IN 3.5SECS

Taking a tactical route GMC’S ELECTRIC SUPERTRUCK LINEUP EXPANDS WITH THE ADDITION OF THE 2024 HUMMER EV SUV — AND IT IS LOADED WITH SMART, PURPOSEFUL TECH “GMC’s HUMMER EV SUV offers an exceptional balance of onroad performance and off-road capability, enhanced by a unique structure that allows for our signature open-air experience,” says Al Oppenheiser, HUMMER EV chief engineer. “New features debuting on the SUV reinforce its role as a tactical tool in almost any situation.” The new technologies include a new available Power Station generator1 that enables customers to utilise up to 3 kW of power from the vehicle, turning the HUMMER EV SUV into a power source on the trail or a backup generator. It enables 19.2kW AC charging, generator functionality

10 MAY 2021

(120v/25A/3kW) and ability to charge other EVs (240v/25A/6kW) Kelly MacDonald, chief marketing officer, General Motors Africa and Middle East adds: “The excitement we have seen in our region upon the HUMMER EV reveal exceeded our expectations. Today, with the reveal of the HUMMER EV SUV, we further assert our commitment to bringing world-class trucks and SUVs while also pushing forward our future mobility agenda, and this milestone embodies this promise in the best way possible. We are very excited and cannot wait to see it on the roads in the Middle East – a market that has a strong emotional connection

to both GMC and HUMMER.” HUMMER EV’s interdependent body/battery structure enables the Infinity Roof on the EV pickup as well as the SUV, and expected best-in-class off-road proportions help make the new SUV even more manoeuvrable — while making the most of the HUMMER EV’s signature features such as CrabWalk2, Extract Mode and more. It also features an interdependent body/battery structure that supports a unique, double-stacked battery pack. An available three-motor Ultium Drive system delivers up to 830 horsepower and 11,500 lb-ft of torque / 15,591 NM — enough

power for super-fast 0-100km/h sprints in approximately 3.5 seconds with Watts-to-Freedom (based on GM estimates). GMC calls it an off-road beast and it comes with nearly 9-inch less wheelbase than HUMMER EV Pickup, “giving it expected bestin-class off-road proportions, with greater departure and breakover angles and a tighter turning circle of only 35.4 feet (10.8 meters) with 4-Wheel Steer.” The HUMMER EV SUV is driven by General Motors’ Ultium Platform and launches with the exclusive US Edition 1 package, offered in Moonshot Green Matte4 with or without the Extreme OffRoad Pack, for greater customer

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LAUNCHES

FEELING STARIA EYED

HMC LAUNCHES ITS NEW 9-SEATER STARIA MULTIPURPOSE VEHICLE (MPV)

BACK WITH AVENGENCE The HUMMER EV’s user experience team worked with Perception, a creative agency best-known for their technology design work within the Marvel Universe, to create a cinematic in-cabin experience that engages the senses.

ADAPTING TO YOUR DRIVING Standard features on US Edition 1 model include 4-Wheel Steer with CrabWalk2, which allows diagonal-drive functionality, as well as Adaptive Air Suspension with Extract Mode and 22-inch wheels with 35-inch-OD Goodyear all-terrain tyres. e4WD with torque vectoring is available as standard on US Edition 1.

choice in tailoring the vehicle for maximum driving range or maximum off-road capability. Without the constraints of a conventional propulsion system and traditional drive axles, tremendous power and control is available to each of wheel. In fact, the Ultium drive system can channel power to a single wheel, keeping the vehicle moving in some

of the toughest driving conditions and terrain — including 13 inches of suspension travel, climbing 60% grades (forward and reverse), scaling 18-inch verticals and fording water more than 2 feet deep. With enhanced vehicle hardware, it can jump charge another electric vehicle at 240v/25A/6kW and power a variety of equipment.

Hyundai Motor Company (HMC) officially launched its new STARIA multi-purpose vehicle (MPV) lineup via a digital world premiere last month, establishing a model for its future Purpose Built Vehicles (PBVs). STARIA’s debut furthers Hyundai Motor’s transformation as a Smart Mobility Solution Provider, saus the South Korean giant and embodies its ‘inside-out’ design methodology that “emphasises interior spaciousness and usability”. STARIA is Hyundai’s response to shifting consumer needs by offering them purposeful, innovative features and redefining in-car travel experiences in line with the company’s vision of ‘Progress for Humanity.’ STARIA is available in 2- to 11-seat configurations and in two variants: STARIA and STARIA Premium, the latter elevating mobility to the next level with upgraded features and variant-exclusive finishes for a more luxurious look and feel. Storage space is available on top of the overhead console, bottom of the cluster, and top and bottom of the center fascia. Both driver and passengers also have access to a center console equipped with cup holders, USB ports and additional storage space. STARIA Premium offers a variety of additional interior features that will transform the passenger’s mobility experience. The 7-seat Premium model is equipped with Premium Relaxation Seats in the second row that recline electronically

and also have sliding capabilities for easy reach or to maximize cargo space. The one-touch relaxation mode makes the seats recline automatically to a posture that comfortably disperses the passenger’s weight and improves overall body balance. Even when the seats are reclined by this mode, there is enough room for an adult passenger to sit comfortably in the third row, thanks to STARIA’s spacious interior layout. The 9-seat Premium model’s individual seats in the second row can swivel 180 degrees to face passengers in the third row. This makes STARIA Premium ideal for corporate vehicles or mobile offices as passengers can turn their seats around and conduct meetings face to face. Families will also find these swiveling seats convenient as rear-facing passengers will have easy access to those seated in the third row. Additionally, STARIA’s generous legroom is among the best in its segment and can be converted into expansive additional cargo space when all seats are pushed together. SPECIFICATIONS Diesel Engine 2.2l VGT engine Power

177PS

Torque

44kgf-m

Petrol Engine 3.5l Smartstream G6DIII Power

272PS

Torque

33.8kgf-m

CARGO CARRIER 5,000L CAP

SPECIFICATIONS Power

830hp

Torque

15,591NM

Driveline

e4WD drive system

Charging

800-volt DC (up to 300 kW)

0-100km/h

3.5 seconds

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MAY 2021 11

FEATURE

RENAULT GOES ALL IN

Bruno Blin on turning the Renault Trucks’ range fully electric

t has been a chastening year for the automotive industry as a whole but if consumers were heading online in greater numbers before the COVID-19 pandemic, then they are now charging headfirst onto internet to do their buying. This is both a challenge and opportunity for fleets. Across the globe, retail and F&B outlets are reporting double-digit or even triple-double-digit changes to where their revenue is coming from. Do not assume this is a western or Asian phenomenom either. Last month, a report by statistica.com, showed that while 48% of shoppers have not changed their online shopping habits, 12 MAY 2021

32% said that they were now shopping for a wider range of goods and 21% said they were shopping online more frequently. A further 6% said they shopped exclusively online. The future, then, is looking more and more like a digital one. The best vehicles to meet this demand will be ones that are able to deliver in and out of the urban environment at ease and in step with evermore demanding emission rules. With his company committing to producing electric trucks for construction, distribution and long haul, Renault Trucks’ Bruno Blin says the events of the last 12 months will define how the French heavyweight is approaching an exciting, if uncertain, future for the industry.

The majority we put on the market by 2040 will be EVs”

“Let’s move back one year ago. Remember more or less everything was collapsing. 2020. The year will stay in our memory as a tough one, but also a year which has allowed Renault Trucks and its employees to make miracles to protect our colleagues, our customers and our company 2020 was also the year where we have been able to continue and even accelerate our transformation towards more sustainable transport solutions.” Much of 2020 was spent dealing with the chaos caused to customers by the pandemic with Renault moving quickly to help financially with adapted finance solutions; and practically with an impressive set of initiatives including daily meal distribution for drivers, helping meconstructionnews.com

FEATURE

“Such a great shift cannot be done by a single player. We enjoyed our partnership with Renault cars and we work to reinforce it. We will also use our alliance with Isuzu. Electric vehicles are a key cornerstone of our strategy and we target 10% of our total volume in 2025 and 35% in 2030. And again, our ambition is to be 100% fossil free by 2050.” PURSUING When asked whether fleets will begin ELECTRIC MOBILITY to see costs fall as vehicles become more Renault Trucks now boasts a we will popular, Blin concludes: “I think comprehensive all-electric range the volumes grow and, of course, having the market, 3.1 see to 26 theon volume growingfrom we will the costs tonnes. Comprising the Renault going down and certainly the TCO of Trucksvehicles D Z.E.,will D Wide Z.E. and electric go down step-by-step the Renault Trucks Master Z.E., it that in the next few years. This is the trend meets the requirements of urban we foresee. After we have to remember transport, delivery, distribution that we are selling something special.and We waste collection. Preparations areis are sitting an electric trucks truck that underway a Z.E. tractor We fossil-free. It’s to an market additional advantage. to meet the needs of regional and are selling a truck with a very low or no inter-regional transport from 2023. noise which you can use to deliver during all-electric offerhigh designed theAn night. It has a very level offor comfort urban construction will also be The that is not exactly the same proposal. available toisorder by this value proposal different but date. from a TCO From 2023, an all-electric point of view, for sure, we will see Renault we offer willofbeover available willTrucks see a decrease the time.for ” each segment, namely distribution, construction and long distance. To support these developments and be able to offer a complete and competitive Renault Trucks range on the market, the company is setting up an organisation dedicated to electric mobility. Renault Trucks is thereby confirming its commitment to fossil-free transport. Renault Trucks has set up a new entity responsible for electric mobility projects, in order to boost both operational efficiency and customer satisfaction. This team has acquired a high level of expertise and is working to develop partnerships involving all the stakeholders (hauliers, distributors, public authorities, energy suppliers, etc.) to propose smart and competitive electric range with added value for hauliers.It is including services in the vehicle offer in order to simplify the lives of its customers who are looking for the solution best suited to their activity. In addition to the vehicle, the Renault Trucks brand offers a transport solution including batteries, installing charging facilities, and more.

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nursing staff and supporting a staff initiative to 3D print protective wear for key workers. “We have seen the importance of transport and especially truck transport during the pandemic and our truck drivers. They were seen as heroes during this period and I hope that this image built during this period will stay.” Seemingly referring to the tireless efforts of the industry and also his own company, he adds: “During adversity speed and agility can really make the difference.” Overall, the year has seen 41,000 trucks invoiced and a 24% decline in deliveries. Blin says this is in line with the global market but he sees a “very positive indicator” in an increase of new orders by 12% in 2020. It has also largely protected its 8.5% market share in the all-important heavy duty segment in Europe. He adds: “This shows the resilience of our market and the resilience of our own position.” Looking further afield, the MENA region continues to a source of pride for Blin. “We have had a good year on the international market despite the crisis

We have seen the importance of truck transport during the pandemic”

and despite the geopolitical tensions. We increased our deliveries by 16% with more than 4,000 trucks delivered. For example in Algeria, we have seen a recovery with 1,100 trucks invoiced which represents an increase of 80% compared to the previous year. Thanks to our factory in Meftah, we confirmed our market leadership with 48 percent market shares. Unfortunately for us and for our customers, 2021 remains very uncertain in Algeria because of the ongoing change on import regulation. “We also noticed a good performance in sub-Saharan Africa, especially in Guinea and

A NEW NORMAL AND THE DECLINE OF THE OLD ENGINES Bruno Blin is preparing Renault Trucks for a future beyond convetional engines. He believes that the majority of all vehicles will be using alternative drives.

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Senegal where we propose a dedicated used trucks offer which are fully refurbished and transformed vehicles. We also saw a strong increase of our deliveries in Turkey, of more than 1,000 vehicles in 2020, which is a 66% increase in a very fast, growing market.” As T&FME has previously reported, Renault Trucks’ factory in Bourg-enBresse has been converted to handle the refurbishment of used trucks for markets such as the Middle East and Blin reveals that it is now running at full speed with 500 trucks transformed in 2020. The T

The TCO of EVs will go down step-by-step in the next few years”

X-Road 64 launched in the region last year, and Blin openly declares: “We clearly want to compete with Chinese players in Africa.” He adds that the company has also launched a new project with Indra to develop a network for recycling and reusing truck spare parts. “We are pioneers for the industry in the circular economy,” declares Blin before turning on his heels to stress that the company is still focus on accelerating “the preparation of the future. One of our priority is to develop products and solution that reduce the CO2 footprint.” Blin has committed the company to ensure its running fleet will be carbonneutral by 2050. This isn’t as far off into the future as it may at first seem. “As all our trucks last around 10 years, it means that from 2040, we need to ship 100% of our trucks as fossil-free.” Renault Trucks began series production of its second generation of electric vehicles at its Blainville-sur-Orne plant in March

AIMING TO BE CARBON NEUTRAL Blin has committed the company to ensure its running fleet will be carbon-neutral by 2050. By 2040, the company will be only shipping fossil-free trucks.

14 MAY 2021

A VIRTUAL RELAUNCH FOR RENAULT 2021 is set to see developments in the Renault Trucks long-haul (T) and construction (C and K) ranges, in terms of comfort, safety and productivity. For the first time in the HGV sector, the French manufacturer will present its trucks in the Euro Truck Simulator 2 video game and offer a virtual driving experience. Renault Trucks is offering its fans a new, innovative and interactive experience. On 6 April 2021, the manufacturer revealed the 2021 evolution of the Renault Trucks T via Euro Truck Simulator 2, the truck driving simulation video game. The exterior design, driving position and cab layout will all be upgraded and everything can be tested virtually in the game. In 2021, Renault Trucks is upgrading its long-distance (T) and construction (C and K) ranges. This is the most extensive development since the total overhaul of the manufacturer’s ranges in 2013. For the well-being of drivers, Renault Trucks has made major improvements in terms of both driving comfort and on-board comfort. The high level of safety for drivers and road users has also been central to the development of the Renault Trucks T, C and K ranges. For customers, vehicle productivity has also been improved, with ever lower fuel consumption and CO2 emissions and increased vehicle availability, due notably to the related Predict predictive maintenance contracts.

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2020 and is now able to boast a range of all-electric commercial vehicles from 3.1 tonnes to 26 tonnes – consisting of the Renault Trucks D ZE, D Wide ZE, and the Renault Trucks Master ZE. As such, Renault Truck is able to meet the requirements of urban transport, delivery, distribution, and waste collection. By 2023, an all-electric option for each market segment will be available to any fleet wanting to invest. Blin envisions that the share of conventional engine sales will continue to decrease progressively but a challenge remains in gap exists in the heavy-duty segment on how to bridge the gap to a carbon-free future. “We can say that the absolute majority that we will put on the market around 2040 will be electric. But we think that we will see two different technologies when it comes to energy storage: batteries and fuel cells. We don’t know exactly what the mix between those two technologies will be but we believe that both technologies will play a major role in the future.” “The transformation has already started and Renault Trucks is clearly in the lead,” he proclaims. “Regarding the medium duty, we are in serial production already serving more and more customers for important segments like distribution, waste collection and recycling. We are continuing to roll out the electrification of our range for all relevant segments to be able to step-by-step cover the entire market.” Like others, it wants to explore H2 fuel cells or biofuels, but unlike some of its competitors, Renault Trucks will not be seeking a CNG or LNG alternative for its trucks. Look far enough ahead, the end-game is electrification, not natural gas, for all vehicles, argues Blin. “We really believe that electrification will be the ultimate solution. The storage of energy will be between two technical solution but for the long haul it will be through fuel cell hydrogen.” In terms of its pathway to electrification, Renault Trucks will be a beneficiary of the creation of Volvo Energy, a new entity created to optimise batteries and develop charging solutions within the Group. He is also enthusiastic on the progress that meconstructionnews.com

THE ULTIMATE SOLUTION Blin calls EVs “the ultimate solution” and believes Renault Trucks will be a beneficiary of the creation of Volvo Energy, a new entity created to optimise batteries and develop charging solutions.

Such a shift can’t be done by a single player”

will be made by Cellcentric, the joint-venture between Volvo Group and Daimler. Also citing its work with Samsung to jointly develop battery packs and Renault Car, he says strategic alliances will be essential in the next steps to electrifying transportation. “Such a great shift cannot be done by a single player. We enjoyed our partnership with Renault cars and we work to reinforce it. We will also use our alliance with Isuzu.

Electric vehicles are a key cornerstone of our strategy and we target 10% of our total volume in 2025 and 35% in 2030. And again, our ambition is to be 100% fossil free by 2050.” When asked whether fleets will begin to see costs fall as vehicles become more popular, Blin concludes: “I think we will the volumes grow and, of course, having the volume growing we will see the costs going down and certainly the TCO of electric vehicles will go down step-by-step in the next few years. This is the trend that we foresee. After we have to remember that we are selling something special. We are sitting an electric trucks truck that is fossil-free. It’s an additional advantage. We are selling a truck with a very low or no noise which you can use to deliver during the night. It has a very high level of comfort that is not exactly the same proposal. The value proposal is different but from a TCO point of view, for sure, we will see we will see a decrease of over the time.” MAY 2021 15

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ONE BIG STEP FOR MAN

Joerg Mommertz talks to T&FME about bringing the new MAN TG range to the Middle East and Africa

16 MAY 2021

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t must be 2021 when the media briefing announcing the launch of a new truck range by MAN Truck & Bus is conducted virtually. To paraphrase Bob Dylan, the time’s, they really are a changing, and so is the German manufacturer. Known for its mighty, muscular teutonic and behemothic haulers, the company is well on the way to embracing the softer skills required for the digital era that is overwhelming the transport and hauling industry. Now installed into the TRATON Group, alongside VW and Scania, MAN is part of a collective that has ruggedly committed to take its accumulative engineering nous into the realms of cloud data and services – and by association, its importers and their customers too. But, to backtrack a little. The New TG Range from MAN Truck & Bus is now available to order in the Middle East. And it is one heck of a hauler. The launch comes 12 months after the global debut for the range and it arrives with many of the features that saw its TGX model snatch back the title of International Truck of the Year from the MercedesBenz’ own superlative Actros for 2021. According to MAN, the development of the new trucks was based on customer feedback, to “provide them vehicles that meet their operational requirements – for today and for the future.” MAN has spent much of the past decade focussing on the safety and efficiency of its flagship range but it has wrapped up the new vehicles with a winning combination of sustainable transport solutions and service. It is hard to argue with MAN’s own launch notes that boasts that it has always delivered robust, reliable and efficient vehicles. You are still getting the high build quality forged by its engineering team at its factories but you can now also benefit from improved customisation - which remains a hallmark of sister company Scania. This means regional customers can also access the full range of options of the new range’s much praised cabin – digital display included - and Euro emission engine ratings from 2 up to 6; suiting most fuel standards in the GCC, Middle East and Africa. In the past, MAN has shown a preference for a blocky and squared look to the grille and exterior, but that traditional pretence of dogged robustness has been adopted by less premium brands to re-assure their customers. meconstructionnews.com

A TRUCK FOR A NEW ERA OF TRUCKING This is a new range and a new era in trucking, says Mommertz: “We had a good launch last year with the TG range in Europe and now it is the turn of the Middle East and Africa, and the Latin America.”

How best to signal that your money is still being well-spent on high technology and refinement? Well, in this case, the designers of the New TG Range must have thrown away their set-squares and dived headlong into the world of the trapezium to give each surface of the tractor head an angular edge. They wanted a new look that is both visually appealing and functionally efficient. They got it. Whether a truck can ever be designed to look like it offers the “highest levels of reliability and efficiency for diverse applications and operating conditions” is the privilege of the purchaser but there is no denying that on the inside, at least, MAN has scored with its focus on the sort of driving comfort that Ford used to

These trucks are built to withstand rugged use”

great effect to win over the industry with its own IToY, the F-Max two years ago. The TG also lays out a fully functional driver’s workplace with its clearly arranged and fully digital display. Running beneath all of this, is the high degree of connectivity provided by its electronic architecture, which is a first of its kind in the commercial vehicle sector. MAN is clearly confident that the truck will be a success in the market, and is prepared to offer fleets a 3-year warranty on the complete driveline on truck tractor models. “We also have service contracts that can help customers in terms of preventive maintenance, predictable costs, optimised vehicle uptime and roadside/on-site assistance. Overall, we are offering the best ownership experience to customers,” notes Joerg Mommertz, Senior Vice President, Head of Sales Area Middle East, Africa and Latin America (MEA&LA), MAN Truck & Bus SE. Mommertz describes the launch of the new range as a “milestone moment” for the company. “It reflects MAN’s focus on helping our customers in their business. These trucks are built to be highly reliable; able to withstand rugged use over their typical operating life, while delivering best-inclass performance. As a result, customers get the optimum uptime and attractive Total Cost of Ownership (TCO).” He says that the TG is a demonstration of MAN wanting to be viewed as a global transport solution provider but is balancing that out with an almost back to basics approach in the field. “This is a new range and a new era in trucking. We had a good launch last year with the TG range in Europe and now it is the turn of the Middle East and Africa, and the Latin America. These are the most diverse and demanding markets we have in the Group and therefore I am very happy that we have the best product in the portfolio and the perfect fit for the market. “We are providing sustainable transport solutions because it is not only about hardware. There is still the commitment to provide robust reliable and efficient vehicles. We have a strong history and legacy. It is an asset but it is also an obligation towards our customers and we are staying to fulfill customers expectations and to fulfill our promises MAY 2021 17

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with the hardware, with the truck, but also with all the services that fleets wanted.” Expanding on the final point, he says the trucks have been developed based on customer feedback and trying to simplify their own businesses. “The new TG range is built on four pillars that are all about the customer benefits: greater efficiency and economy every day; being a strong partner for all customers everyday; guarantee our customers optimised up time; and also offering excellent driver comfort.” MAN is currently the only manufacturer that offers engine emissision norms from Euro 2 to Euro 6 and based upon the model and market requirements. For Mommertz, who has three continents to juggle, this means that MAN is hitting all the customer requirements on his watch. He claims that the engine range remains robust, reliable and more efficient than before and will deliver consistently high performance over long duty cycles. He adds that the focus has been on reducing service costs. “You are familiar with the market conditions in the Middle East and Africa? History has shown that MAN has always offered reliable high performing trucks under all conditions but substantial improvements made on the product and in the areas of maintenance and service can reduce service life costs. This range also offers a significant payload advantage

This is a new range and a new era in trucking”

for weight-sensitive applications and we are very proud to say the TGL and TGM are Best in Class regarding payload.” Continuing on the theme of how MAN’s 4-pillar strategy works in the region, he asks: “What does it mean to build a competent and personal partnership? Our network, our dealers/importers are in the markets to be a strong partner for the customer but also be our strong partner in the respective markets to guarantee the customer gets what he needs in his daily business. Our import departments have done a commendable job to achieve customer satisfaction. In South Africa, we achieved the number one in customer satisfaction in 2020 and it shows it is the right approach to put the customer first.

“The new Range also follows a product logic that is oriented towards application profile. We can specify everything that the customer needs. It allows us to put together a new TGM or TGX which fits the exact fleet operation using flexible configuration options. The customer’s always getting what he needs to do his business in an optimal way. “Optimum also means optimised up-time; upmost availability over the entire service life.” He says that with the TG launch MAN Truck & Bus Middle East will rely on its tried and tested approaches to optimising uptime is also expecting to close coordination between its sales and after sales organisation guarantee up time, from the initial configuration through to the truck being out on the road. Work has also been put into the control systems managing individual parts, such as the truck’s steering modules and a string of other components to smooth the driving experience. The data from the system can also be used to speed up the identification of problems and find faster solutions. “The powertrain and other key aggregates retain their characteristics from the previous generation but there is a new simplified and powerful electronic architecture supporting the truck’s functionalities even better and makes the new range particularly fit for the future,” explains Mommertz, before emphasising that the core purpose of the new TG is to optimise the truck and consequently

AN ENGINE FOR ALL TASTES AND REGULATIONS MAN claims it is currently the only manufacturer that offers engine emissision norms from Euro 2 to Euro 6 and based upon the model and market requirements.

18 MAY 2021

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the driver’s own workload: “The truck driver performance and motivation was placed at the forefront,” he remarks. “We have the most ergonomic driver workplace in the industry today. Sitting in the cabin you should feel like being an upper class passenger car. This is made for our drivers doing business everyday on all roads around the globe.” MAN says the instruments in the cab are intuitively operable driving and multimedia functions incorporated into the new, generously adjustable multifunction steering wheel and the distraction-free rotary pushbutton control function of the MAN SmartSelect system which impressed the jury of the International Truck of the Year. The jurors were just as positive about the living conditions in the new driver’s cab as with the high level of safety. “We have set standards in terms of user friendliness, optimum ergonomics and vehicle operation, which is more intuitive and reliable,” opines Mommertz. “There is also the aspect of optimum space, because storage concept and sleeping comfort counts for the driver. This is also contributing to the safety in traffic: the ultimate achievement is a driver who is wellrested, comfortable and alert at all times.” He breaks to joke: “We offer more than just a truck. I know everybody is claiming that but we stay for it. We offer effective after sales for service and parts. “We have a wide range of digital solutions, including telematics, which is a powerful enterprise-grade solution as well as financial solutions. We also have the Trucks-to-Go online ordering system where customers can view trucks ready in our stock in Munich and ready for fast delivery to all markets.” In other markets, MAN Truck & Bus has been able to offer its own MAN Driver App to control the infotainment systems. The beginning of the year also saw it open up MAN Now, the first service to offer over-the-air features. Through the MAN Now, platform, drivers can receive updates to adapt the functionality of their trucks to suit their own requirements. For instance, the route optimiser MAN OnlineTraffic can be updated via a mobile connection rather than a workshop. Particularly useful if you are on a long haul trip. Mommertz is hopeful that the fleets in the region will be given access to it. “Maybe in a further step we will be able to offer also over-the-air-services, but meconstructionnews.com

KEEPING THE DRIVER CONNECTED The New TG range sets a high bar for driver connectivity. Mommertz says the full range of services will be available across the MEA region, but the full suite is unlikely to get approval in many markets.

it depends on the local telecommunication providers, but we are ready to offer such services also across Middle East and Africa.” T&FME asks whether MAN is expecting fleets in the region to be reluctant to make the jump to a truck and cab in particular that is so heavily focused on high-tech. “So, of course in some countries, customers are still hesitating a bit. But a good example would be the automated gearbox, the tip-metal gearbox. In the beginning we have seen some customers hesitating, but once they got it, they don’t want the old one anymore. European digital solutions are going to be available at the beginning here but where there is a demand - and the infrastructure - we will offer it.

Substantial improvements can reduce service life costs”

“The electronic architecture helps us with connectivity today and also achieve the first steps towards autonomous driving.” Coming to a close, he says that the trucks are beginning to arrive in the market. A large order for 150 vehicles is ready to be approved for assembly at its CKD plant in Saudi Arabia and a first Dubai order (a first truck in the GCC arrived just the day before the interview) has been made. Mommertz is demonstrably pleased with his newest vehicle to sell. “Personally, when I look at the truck, I really love it. If I could order one of those flagships, I would even put it into my private garage. Unfortunately there’s not enough space!” MAY 2021 19

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“THE PEDAL IS ON THE FLOOR”

We are moving into the era of the electric delivery van, says Interact Analysis’ Alastair Hayfield, senior research director – UK

s we peer out of the gloom of the COVID-19 pandemic, have any lessons been learned? It would appear they have. Or maybe those lessons were on the table anyway. But the virus seems to have focussed our mind on climate change and clean-air issues – remember those blue skies and that birdsong during lockdowns as nature reclaimed its own? Coronavirus also changed our habits. Online shopping has become more the norm than the exception, and those habits are likely 20 MAY 2021

to stay. The net result – we are moving into the era of the electric delivery van. Electric cars have been around for some time, but the accelerator pedal is now on the floor in the EV sector as electric delivery vans come onstream in a market made fertile by the boom in eCommerce. A host of start-up companies such as Lion Electric, Arrival, Rivian, Hyliion, Proterra and Nikola have taken the stage. New players offering exciting new technologies. But how do they get on the market? And where does the finance come from? There is huge investment in the electric

There is huge investment in the electric van market right now”

van market right now. Special Purpose Acquisition Companies (SPACS) are bringing billions of dollars of capital into the market to support rapid growth. SPACS are publicly traded companies that come into being to raise funds to finance merger deals. In the electric utility and light-duty vehicle sector there have been six or seven such deals in the past 12 months alone. In November 2020, for example, UK EV manufacturer Arrival announced it will combine with CIIG Merger Corp, a SPAC set up by former Remington and Marvel CEO Peter Cuneo. The deal meconstructionnews.com

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GOOD FOR BUSINESS Going green is good for a business’ image, argues Hayfield: “Genuine altruism, the need for good PR, and pressure from customers who do not want their streets filled with fumes from delivery vans are all drivers of the electric van market.”

gives Arrival an enterprise value of $5.4 billion, with the combined company expected to raise a total of $660 million. Meanwhile, Lion Electric Co, a Quebecbased manufacturer of electric school buses, mass transit buses and medium and heavyduty trucks, will go public through a merger with Northern Genesis Acquisition Corp, a Special Purpose Acquisition Company. Other companies such as EV Tech and Proterra are following suit. There is the danger of a ‘bubble’ forming as so many companies rush to raise funds – particularly as there are concerns that SPACs don’t meconstructionnews.com

Danger of a ‘bubble’ forming as companies rush to raise funds”

have the same level of scrutiny as a more traditional IPO. However, there is substantial market potential in the light duty space and, if more fleets continue to electrify, the rush to go public may be justified. Putting SPACS aside, significant orders for electric vans have been made by the likes of Amazon, FedEx, and UPS. Amazon, ever the frontrunner in the online retail world where investment in new technology is concerned, have ordered 100,000 electric delivery vehicles from start-up Rivian. A $700m investment. Our research forecasts that the EV light commercial market in the United States,

Europe and China is going to expand at a rate of 37% per year between 2020 and 2030. And it is this sort of projection that is encouraging such massive investments. But what factors are pushing the EV delivery van market? Let’s start with the COVID effect. Research at the Martin Luther University of Halle-Wittenberg, in Germany, has concluded that high levels of air pollution may be one of the contributors to deaths from coronavirus, pointing to data that indicated that 78% of Covid-induced deaths occurred in the five regions registering the highest concentrations of NO2 in the air. NO2 can inflame the linings of the lungs and reduce immunity to lung infections. Hence the renewed emphasis on lowemission zones. Globally, the overwhelming majority of low emission zones are in Europe. London and Paris probably have the most ambitious plans and schemes – looking to ban all or significantly reduce the numbers of polluting vehicles in city centres. A recent analysis in Belgium concluded that emissions from vans in the EU have increased by more than 45% since 1990. The hugely increased volumes of online shopping caused by the pandemic and the proliferation of low-emission zones form a pincer movement from which the electric light commercial vehicle (e-LCV) is the only escape. According to research commissioned by Bloomberg, same day parcel delivery volumes in the United States will grow to 10 billion parcels by 2030 — a 23% annual growth rate since 2019. The pressure really is on. Going green is good for a business’image. Genuine altruism, the need for good PR, and pressure from customers who do not want their streets filled with fumes from delivery vans are all drivers of the electric van market. Amazon, for instance, has recognised that good customer relations is key. The company strives to ensure a seamless and swift customer experience from the point that an item is ordered to the point it is delivered… and returned, if necessary. The company has recognised that non-polluting delivery vans should form an integral part of that positive experience. Capital expenditure has been an obstacle for companies considering investing in electric van fleets. Upfront costs for e-LCV’s are significantly higher than those for diesel vans. However, with increased production of electric vans, CapEx is going down, and though still higher, it is offset by lower fuel MAY 2021 21

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the game too, some offering novel packages. General Motors has launched its new brand, BrightDrop which offers clients’ companies “a complete suite of products and services for first to last-mile deliveries”. This includes the BrightDrop EP1 electric pallet for use in the warehouse or with the van out on delivery. The last mile logistics landscape is changing before our eyes. Powertrains set to rise

FALLING COSTS OF VEHICLES The vehicles can be cheaper once economies of scale are achieved, eAxles, for instance, will become very competitive in cost with discrete motors and transmissions as well as offering space savings and design freedom.

costs (electricity instead of diesel) and there are other advantages, such as lower maintenance costs and lower road taxes. In its launch materials for the e-NV200 van, Nissan claims that it can save operators up to £2,500 in fuel costs, with running costs as low as 2p per mile. They also claim that maintenance costs can be reduced by £575, based on servicing parts, and wear and tear. Our own research shows that electric vans could achieve total cost of ownership (TCO) parity with their diesel counterparts as early as 2021 in France, 2019 in Germany and 2025 in the USA. At the end of 2019, 22 MAY 2021

Upfront costs for e-LCV’s are significantly higher”

MAN claimed to have already achieved TCO parity for its e-TGE Van, though this was achieved through a significant upfront price cut. The jury may still be out on TCO, but we can expect overall parity to be achieved over the short term, and in the meantime, the other drivers outlined above will continue to push e-LCV roll-out. With the emergence of the SPAC, particularly in the second half of 2020, funding streams have opened up for a plethora of start-up companies offering exciting new technologies in the e-LCV market. Established companies are in on

In 2020, the average value of the electric truck and bus powertrain components in a single vehicle was estimated at $13,803, with the battery being over half of this. The good news for suppliers is that this is projected to increase to $16,204 by 2023, says Interact Analysis’ principal analyst Jamie Fox. The three main reasons for the increase are: The underlying mix of vehicles will trend more towards larger vehicles over time with a smaller percentage of smaller, light-duty trucks and more medium and heavy-duty trucks, for example. In 2020 and 2021, there is a strong share of hybrids (often mild hybrids) but BEVs are forecast to grow faster. In 2023, Interact Analysis projects that Nikola will be able to bring fuel cell vehicles to the market in volume. Although the number of vehicles will be small, the high value of the fuel cell system means that even a small number of vehicles can affect the average powertrain value. The further increase in average value per powertrain in 2026 and 2027 is also partly because fuel cell vehicles will be reaching maturity in these years and adding significant volume to the market. Therefore, even as the price for a given product for a given vehicle is forecast to decrease rapidly due to tough price erosion, the changes in the underlying mix of powertrains and vehicle types will continue to offer strong business for vendors. A typical BEV powertrain for a bus or medium/heavy-duty truck can be as much as $100,000 at the moment. With stable average pricing and rapidly increasing units, strong revenue growth is forecast. In our previous insight, I looked at how the battery accounts for the largest portion of the revenue. While some components are able to maintain pricing due to the underlying vehicle mix, this is not the case for every component. Different definitions of eAxle exist in the industry. For this report, we defined an eAxle to be a single unit composing of motor and transmission and sometimes meconstructionnews.com

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other components. In an eAxle, the motor is located on or very near the axle, connected to it. All light-duty transverse architectures were counted as eAxles. Interact Analysis believes that the adoption of eAxles is more a question of when than if. As products are developed, new architectures are built specifically for EVs (rather than using conventional vehicle layouts from combustion engine vehicles) and economies of scale are achieved, eAxles will become very competitive in cost with discrete motors and transmissions as well as offering space savings and design freedom. However,

CAPEX has been an obstacle in electric van fleets”

many OEMs are still focused on central drive solutions on existing vehicle design architectures and some of them having no immediate plan to transition to eAxles, Interact Analysis forecasts that eAxles will not fully take over until the 2030s. eAxles are already common in buses (including the ZF portal axle) and light duty trucks. ZF and Meritor are among the leading suppliers. In heavyduty trucks, the market is just getting started but many companies throughout the supply chain are committed to an eAxle strategy over the coming years.

Unlike the trends from batteries and some other components, the average eAxle price will decline quite significantly both in a specific case and averaged across all powertrains, regions and vehicle types. This is because over time many suppliers will be capable of producing the product, and greater efficiencies will be achieved once research and development is completed and economies of scale are achieved. Particularly strong competition is forecast in the first half of the decade. Overall, price erosion is forecast to be higher than for most of the other components.

“VACCINES GIVE US A REASONS TO BE OPTIMISTIC” As global economies continue to reel from the effect of the COVID-19 pandemic, the vaccine roll-out gives us reason for optimism. The talk now is of economies bouncing back after a poor 2019 and a catastrophic 2020. In its latest report on offhighway vehicles, Interact Analysis predicts a scenario where pentup demand will be a driver for significant growth in the sector, as economic wheels get back on track. Whilst growth sunk to a mere 2.6% in 2020, Interact Analysis’s research predicts 6.5% growth in 2021, and an overall CAGR of 3.6% up to 2029. Furthermore, electrification of certain classes of off-highway vehicles is expected to continue at a rapid pace. China could be the only major region to emerge unscathed. Not even the virus has stopped the unprecedented modernisation and extension of China’s infrastructure network. Whilst recent data describe tumbling growth in 2020 for many different machinery types across most of the globe as countries battled with the virus and production slowed or shut down, in China things stabilised quite quickly, as rigorous measures to combat the virus were enforced. Production got back to normal by May 2020, and demand for off-highway equipment resumed. Aerial

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work platforms saw a massive 74% hike in sales, telehandlers +40% and excavators +37%. While China has mitigated the overall impact of the pandemic on the global off-highway vehicle market, 2020 was undeniably a shocker for the industry, but it’s an industry poised to make a comeback, with material handling equipment leading the field by 2025, when sales are forecast to surpass those of agricultural machinery. 2019/20 saw a slowdown in sales of material handling equipment, but the surge in online shopping and eCommerce caused by the virus is likely to be a significant long-term driver for investment in machinery such as lift trucks, particularly as new warehouse automation projects come on stream. Interact Analysis has detected the likelihood of future healthy demand from SMEs and forecasts a return to doubledigit growth rates by 2022, with sales of around 2.4 million units by 2023. All this, of course, rides on the battle with the virus. Overall unit shipments for the construction segment decreased by 2.5% in 2020, due to the impact of COVID-19, giving a growth rate of -2%. But sales of construction vehicles in China sustained solid growth of 26.6%, otherwise the global figures would have been far worse. The size of the Chinese market in 2020

was close to 400,000 units and it was the largest regional market, accounting for 43% of the global sales in terms of unit shipments. The global construction vehicle market will reach its cyclical peak in 2021, having achieved a growth rate of 8%. Thereafter, up to 2029, the growth rate is forecast to be of the order of between 2 and 4 percentage points year on year. Excavators are the largest product group in the construction segment, accounting for over 50% of units shipped in major regional markets such as North America, Europe, and China. The research shows that over 36% of shipments of off-highway vehicles will be electrified by 2029. However, the overwhelming majority of these will be smaller machines. Our research shows that there are good reasons for using BEV technology in larger construction vehicles, such as lower TCO and environmental concerns; but there are also significant barriers, such as upfront costs, lack of charging infrastructure, and charging downtime. Electrification of compact construction vehicles offers many obvious benefits, minimising emissions and noise levels, allowing the equipment to be used in enclosed environments such as in mines, buildings and in other noise-sensitive areas. For many of the environments where material

handling typically works, such as airports and logistics centres, there is already a high demand for “greener” equipment. These places will continue to adopt electrification aggressively. Discussing the prospects for vehicle electrification in the sector, Alastair Hayfield, senior research director at Interact Analysis, says: “While we predict that over 36% of shipments of off-highway vehicles will be electrified equipment by 2029, the overwhelming majority of these will be smaller vehicles, where battery technology is more suitable. Electrification of compact construction vehicles offers many benefits, minimizing emissions and noise levels, allowing the equipment to be used in enclosed environments such as inside buildings and in other noisesensitive areas. For many of the environments where material handling typically works, such as airports and logistics centres, there is already a high demand for ‘greener’ equipment. These places will continue to adopt electrification very aggressively. Electric tractors may make inroads in some agricultural scenarios, but agriculture faces other challenges on the pollution front, such as enteric fermentation – the production of methane by farm livestock, next to which pollution from diesel-powered machinery pales into insignificance”.

MAY 2021 23

WORKSHOP

ALLISON GIVES EGEN ITS GLOBAL DEBUT / ION PUTS ULTRA-FAST CHARGERS ON YAS ISLAND / CURVED OLED NOW IN 2021 CADILLAC ESCALADE / RTA USING DRONES TO INSPECT TRUCKS

WORKSHOP

Allison Transmission launches hybrid eGen

EGEN FLEX FIRST PRODUCT LAUNCH UNDER THE NEW ALLISON EGEN BRAND OF ELECTRIC AND ELECTRIC HYBRID PROPULSION SOLUTIONS ELECTRIC VEHICLES

Allison Transmission, the largest global manufacturer of mediumand heavy-duty fully automatic transmissions and a supplier of commercial vehicle propulsion solutions, including electric hybrid and fully electric propulsion systems, has launched its new zero emission vehicle (ZEV)-capable electric hybrid system, the eGen Flex, the initial product offering under its new Allison eGen brand. eGen Flex provides bus fleets with full electric engine-off propulsion

and accessory power operation capability and the firm claims it is ideal for zero-emission zones and depot operation, including when approaching, during, and leaving passenger stops for a quieter and healthier environment. The eGen product family will include Allison’s portfolio of electric hybrid and full electric products, including the company’s portfolio of electric axles. The eGen Flex electric hybrid system includes a drive unit, inverter and rechargeable energy storage system. The drive unit

includes a disconnect clutch that enables engine-off capability. The inverter has an innovative package improvement that reduces its footprint and weight. The inverter is now water ethylene glycol (WEG) cooled, which eliminates oil lines, decreasing installation complexity, reducing maintenance expense, and increasing uptime. The energy storage system incorporates the latest Lithium Titanate (LTO) technology, which significantly increases energy density, allows for faster charging and enables pure electric (engine off) extended range capability. With the launch of eGen Flex Allison will offer two distinct models, eGen Flex and eGen Flex Max. eGen Flex will be similar in feature set and capability to the Allison H 40/50 EP electric hybrid propulsion system, but with the package enhancements summarized above. eGen Flex Max will offer fully electric propulsion for up to 10 miles, dependent upon duty cycle and accessory load requirements. eGen Flex and eGen Flex Max will be offered in CertPlus model configurations for sale in California Air Resources Board (CARB)-adopting states.

CURVED OLED DEBUTS IN 2021 ESCALADE TECHNOLOGY

The 2021 Cadillac Escalade owners are being met with what is being described as a breakthrough in visual quality thanks to its industry-first 38” of total curved 4K OLED display. The display integrates into the dashboard and wraps around the driver giving them an unobstructed view of the control panel, cluster display and infotainment screen. The From making the most of the available Head-Up Display and available Night Vision, to configuring each of the system’s three screens, here’s how 2021 Escalade owners can tap into the full potential of this luxurious SUV and transform their journey to one to remember. The OLED display has twice the pixel density of a 4K TV, enabling bold imagery, true blacks and the largest, color range available in the automotive arena.

INSIDE THIS MONTH’S WORKSHOP: HOW CAR BUYING IN THE REGION IS DIFFERENT, THE NEW NISMO AND THE FUTURE OF HYDROGEN!

24 MAY 2021

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WORKSHOP

RTA USING DRONES TO INSPECT HEAVY VEHICLES

ION DEPLOYS REGION’S FIRST ULTRAFAST EV CHARGERS ELECTRIC VEHICLES

UAE-based sustainable transportation company ION has announced that it has installed high-power, ultra-fast charging stations with a total capacity of up to 350KW, on Yas Island, Abu Dhabi. The company is a joint venture between Bee’ah and Crescent Enterprises and said the move was in response to the growing demand for electric vehicle infrastructure. Capable of charging electric vehicles (EV) through a connection to a user interface unit, the stations can supply combined charging system (CCS) EVs. Through compatibility with all manufacturers, the stations solve a common issue with EV charging infrastructure by catering to all types of e-vehicles including buses, a statement from the firm explained. Another benefit, the company said, is the fastest charging times in the UAE. ION states the stations can fully charge vehicles in less than 15 minutes on average and can thus reduce user waiting time drastically. The stations are said to be 25 times faster than a traditional home charger which only supplies up to 7KW. “This is yet another demonstration of ION’s commitment to supporting the e-mobility network in the UAE. ION is at the forefront of bringing transformative, green mobility solutions to the market, and we are delighted to claim we have installed the Gulf region’s first ultra-fast charging stations. This move will go a long way to promote the mass adoption of EVs which will improve air quality and reduce vehicular pollution in support the UAE’s sustainability ambitions,” said group CEO of Bee’ah and ION chairman Khaled Al Huraimel.

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TECHNOLOGY Dubai’s Roads and Transport Authority (RTA) has revealed that it has begun using drones to carry out field inspections of heavy trucks. Mohammed Nabhan, director of Licensing Activities Monitoring, Licensing Agency, RTA, explained that the inspection teams have conducted more than 300 inspections and identified 48 offences since 2020. “We had identified all the various cases of heavy vehicles that can be inspected using drones. This creative national initiative utilises artificial intelligence technologies onboard drones to carry out inspections of trucks,” said Nabhan. He added that the drone inspections had improved the operational efficiency of field inspections of heavy vehicles and eased the difficulties encountered by inspectors when inspecting

EYE IN THE SKY RTA inspection teams have conducted more than 300 inspections and identified 48 offences since 2020.

parts of heavy vehicles, which are normally difficult to access. “The use of drones in field inspections of heavy vehicles reduces the vulnerability of inspectors to incidents associated with the climbing onto the vehicle to inspect the upper areas and verify the technical faults and aspects related to shipping and loading instructions to detect any violations related to cargo

stipulations. The main offences listed in this regard are unlicensed protruding cargo, failure to cover the cargo as per the approved stipulations, use of the heavy vehicle in loading and transporting cargo not designated to that type of vehicles, failure to distribute the cargo properly, failure to secure the cargo, monitor trucks with technical faults, and report trucks avoiding inspection points.”

ZF LAUNCHES ELECTRIFIED DRIVETRAIN PILOT

SEARCHING FOR A NEW STANDARD ZF is aiming to set new standards for electrical drives, especially when it comes to integrated systems.

DRIVELINES

Globally driveline solutions specialist ZF has started its first pilot project for an electrified mobile excavator drivetrain using its newly launched two-speed powershift transmission system, electric motor and inverter. The company said the system can be scaled up to peak torque 850Nm and continuous power of 80kW. First prototypes have already been delivered to a pilot

customer recently and three variants of the electric central drive system - eCD50, eCD70 and eCD90 - are available to cover different vehicle sizes in the targeted applications. “Shortly after having started volume production of the electrified driveline system eTRAC eCD20 for compact equipment like compact loaders, ZF now can record the next milestone on the road to emissionfree construction sites,” said a

statement from the company. “With ZF being the world’s market leader in conventional driveline solutions for mobile excavators, the Group is now extending its product portfolio for this type of construction machinery application by electric drives.” ZF added that it aims to set new standards for electrical drives, especially when it comes to integrated system solutions. Its product portfolio for mobile excavators is rounded off by a newly developed electrified swing drive and the established MULTISTEER and MULTITRAC front and rear axles. The new system under the pilot project has a two-speed transmission mated to an electric motor PSM machine with a voltage of 650V (DC). It weighs a total of 255kg and develops 80kW pf power with a maximum of 100kW and includes features such as SAHR parking brake and optional axle disconnection. MAY 2021 25

FEATURE

BACK ON DESERT PATROL

Nissan on why it chose to use Dubai for the global launch of the Nissan Patrol NISMO last month

issan chose to reveal the 2021 Nissan Patrol NISMO to the world in the UAE last month. Marking the latest chapter for Nissan’s performance brand, it was premiered globally through a virtual event hosted at Expo 2020 Dubai. Looking at the vehicle you can understand why. Certainly the new raceinspired version combines striking exteriors with the refinement of a luxury car expected of the Patrol line but it is packed with the exhilarating performance of a sports car. The SUV will be available exclusively to customers in the region, and begins a year-long 26 MAY 2021

celebration to mark the 70th anniversary of the dawn of the Nissan Patrol in 1951. It also furthers the Nissan NEXT transformation journey in the region, following the recent regional launch of the all-new Nissan X-Terra. According to the Japanese giant, the latest manifestation of the bold and sporty Nissan Patrol NISMO underlines its own heritage as a motorsport brand, and the region’s longstanding love for high-performance vehicles. It says the vehicle has been tailored to meet the needs and expectations of customers looking to stand out from the crowd – “those who seek the premium luxury of the iconic Nissan Patrol, and simultaneously crave the exhilaration that comes from increased

NISMO takes the iconic Patrol experience to a whole new level”

power performance and superb handling.” While its exterior has been refined to allow for optimised aerodynamics and suspension, as well as achieving zero lift force, it also features enhanced handling capabilities and stylish race-inspired ergonomic upgrades, along with the latest Nissan Intelligent Mobility (NIM) features. Thierry Sabbagh, Managing Director, Nissan Middle East explained: “Since the launch of the NISMO brand in the region, we have listened to our customers to understand their evolving needs, and worked with our global teams to deliver a NISMO product that not only addresses customer demand, but also takes the iconic Patrol experience meconstructionnews.com

FEATURE

to a whole new level. With the 2021 Patrol NISMO, our customers can experience the thrill of handling a car with a racing spirit and turn heads as they glide through the streets.” The launch further underlines the strong demand for the NISMO brand in the Middle East since its launch in the region in 2016. As Nissan’s performance brand, NISMO is responsible for motorsports activities and specialty performance cars – and is committed to delivering thrilling driving experiences. With high-quality craftsmanship, the 2021 Nissan Patrol NISMO joins the 370Z NISMO and the GT-R NISMO to offer motorsportsinspired aerodynamics and styling, superior handling characteristics and unmatched agility. “The exciting enhancements to the 2021 Patrol NISMO make it the ultimate mark for performance, luxury and respect, and adds to our strong Patrol proposition and overall business strategy to ensure we remain a class apart in the region,” Sabbagh continued. Expo 2020 Dubai was the chosen setting for the virtual launch, as Nissan gears up to offer visitors a glimpse into the future of mobility during the sixmonth event starting 1 October 2021. As the event’s Official Automotive Partner, Nissan is set to leverage its global expertise and showcase next-generation cars based on the brand’s vision of driving innovation that enriches people’s lives. This is also in line with Expo 2020’s purpose of ‘Connecting Minds, Creating the Future’. “We are proud to launch this product exclusively for our customers in the Middle East, especially as we mark the 70th anniversary of the Patrol – and look forward to seeing our customers discover what this eye-catching SUV has to offer.” The 2021 Nissan Patrol NISMO takes on the build of the Patrol V8 LE Platinum City model, and is aligned with Nissan’s new design philosophy of being “bold, energising, human and alive”. Mitsunori Morita, Chief Designer for NISMO said: “Designing NISMO road cars is both a challenge and a beautiful opportunity to express our passion for design on a superlative level. We designed Nissan Patrol NISMO with a unique customer in mind, one with a true passion for performance. We consider every finest detail to provide the most exciting and authentic experience to fuel the adrenaline and inspire the imagination of the excitement-seekers.” The dynamic design plays a pivotal role in highlighting the character of the Patrol meconstructionnews.com

NISMO – exuding aggression and sportiness with an imposing presence. It features a new front fascia, with a honeycomb threedimensional mesh that emphasizes the SUV’s front V-Motion grille, along with new front lamps and horizontal chrome lines embellished with the NISMO emblem. The rear bumper is more symmetrical in design to accentuate the car width, with dark chrome inserts and new tail lamps. It also includes LED rear fog lights inspired by the Nissan Formula 1 car, which emits the same brightness as the car’s brake lights in adverse conditions. The signature NISMO red line wrap covers the circumference at the model’s base, the contour adding a boost

Our aim was to give a sense of confidence and pride of owning it”

to its definition, while the 22-inch, twotone 2 tone aluminum wheels sport the NISMO logo to add a distinctive aesthetic. The SUV’s tuned suspension features Bilstein shock absorbers, which provide a sportier and improved handling. While the exterior of the Patrol NISMO boasts confidence, the interiors are intended to exude pure luxury and NISMO’s racing pedigree in equal measure. The 2021 Patrol NISMO’s design is driven by function, says Nissan, to provide drivers with motorsports inspired aerodynamics and styling, enhanced handling capabilities and unmatched agility. Each vehicle is tuned by Nissan’s legendary Takumi craftsmen team, a team of four master engine builders allowed to hand-build the Nissan GT-R engines at Nissan’s Yokohama engine plant. Their skill in tuning the Patrol’s V8 engine results in a concentrated 428hp and a torque of 560NM. The 2021 Nissan Patrol NISMO also features improvement in cabin quietness as a result of a reduction of the frame vibration, while AC upgrades for the second row help provide a more comfortable ride. Morita concludes: “Our aim when designing the new Nissan Patrol NISMO was to give customers a sense of confidence and pride of owning it. It features a sophisticated aerodynamic form and the size and presence of a premium-class SUV – which when combined with its overwhelming power makes it stand out and establishes its higher grade as a symbol of true performance,” he continued.

A KEY BREAKTHROUGH A key design upgrade to the 2021 Nissan Patrol NISMO is the addition of a side duct to the front bumper to achieve zero lift force. Nissan describes it as a ‘breakthrough’ for the class.

MAY 2021 27

FEATURE

H2 READY TO GO?

As Daimler and Volvo launch Cellcentric, law firm CMS’ Amir Kordvani and Fatma Salah examine regional fuel cell progress

hilst this area of the world is typically known for more traditional energy sources, over the last few years there have been a number of projects in the Middle East that demonstrate how the region is researching and developing hydrogen technology and the deployment of a hydrogen economy, among other renewable energy sources. Several projects have been undertaken in the UAE, Egypt and Saudi Arabia, the most notable of which are outlined below. The United Arab Emirates is a pioneer in renewable energy (particularly solar) and is committed to developing a green energy economy. Air Liquide, a world leader in gases, technologies and services, recently 28 MAY 2021

undertook a study in collaboration with Al Futtaim Toyota and Khalifa University of Science, Technology and Research (Khalifa University), to distribute Toyota’s hydrogenpowered fuel cell electric vehicle (FCEV), Mirai, and consider strategies of how to develop the hydrogen industry in the UAE. The study demonstrated that there is substantial potential for hydrogen mobility to become a major economy for the UAE, in line with the UAE’s Vision 2021, as well as its clean energy goals. In 2017, Al Futtaim Motors in partnership with Air Liquide opened the first hydrogen station in the Middle East, at Al Badia, Dubai Festival City. Construction of a second station was set to begin in 2020 in Masdar City, between Abu Dhabi National Oil Company (“ADNOC”), Masdar Clean Energy, and

The study demonstrated that there is substantial potential for hydrogen mobility”

Al Futtaim Motors, though it is not known when this is due to become operational. In February 2019, the Dubai Electricity and Water Authority (“DEWA”) inaugurated the first solar-driven hydrogen electrolysis facility, the Mohammed bin Rashid Al Maktoum Solar Park, in the Middle East and North Africa (“MENA”) region in Dubai. According to reports, the hydrogen produced at the facility is intended to be stored and deployed for re-electrification, transportation and other uses. It is likely that the facility will be operational in 2022. Expo 2020 Dubai, which has been postponed to October 2021 due to Covid-19, intends to showcase hydrogen mobility by powering a number of FCEVs with the hydrogen generated at the facility. In addition, the Emirates National Oil meconstructionnews.com

FEATURE

Company (“ENOC”) is planning to unveil a “Service Station of the Future” for the Expo, which will use multiple sources of energy, including solar and hydrogen. The Abu Dhabi Police has also announced plans to convert its vehicle fleet to FCEVs by 2050. Saudi Arabia

Hydrogen projects are generally considered to be in line with Saudi Arabia’s clean energy targets and vision for 2030, however, there have only been two large-scale hydrogen projects to date. In July 2020, Air Products & Chemicals (Air Product”), whose principal business is selling gases and chemicals for industrial use, announced plans to build a green hydrogen plant in Saudi Arabia. The plant will be powered by 4 GW of wind and solar power, making it the world’s largest such project. The USD 5 billion plant will be jointly owned by Air Products, Saudi Arabia’s ACWA Power, and Neom, a new mega-city planned near Saudi Arabia’s borders with Egypt and Jordan. Due to be operational in 2025 and situated in the city of Neom, the completed facility will produce 650 tons of green hydrogen daily, enough to run around 20,000 hydrogen-fuelled buses. Egypt also has huge potential in terms of land and resources to produce hydrogen powered by solar energy for export. Egypt is considered a “sun belt” country with 2,000 to 3,200 kWh/m2 of direct solar radiation. The sun shines between 9 and 11 hours a day with few cloudy days. There are also land areas with high and steady wind speeds suitable for producing wind energy, which can also be used to produce green hydrogen. Egypt has adopted an ambitious energy diversification strategy. The strategy aims at ensuring the continuous security and stability of power supply, the diversification of energy resources and the optimum exploitation of the country’s resources. The strategy has set a target to achieve 20% renewable energy of the total national generation capacities by 2022. This share will increase to 37% in 2030 and to 42% in 2035.

been collaborating with Japan to explore the possibility of establishing a hydrogen supply chain in order to increase hydrogen utilisation in the sustainable economy. In March 2020, the DEWA Research and Development Centre (the “R&D Centre”), part of the Mohammed bin Rashid Al Maktoum Solar Park, was opened. The R&D Centre is focussed on four major operational areas: “electricity generation from solar and clean energy, integration of smart grids, energy efficiency, and water”. A solar-powered green hydrogen project is being built at the outdoor testing facility of the R&D Centre, which is expected to be launched at the Dubai Expo 2020 (postponed until 2021). In 2019, Saudi Aramco and Air Products signed a cooperation agreement to jointly build Saudi Arabia’s first hydrogen FCEV fuelling

There is no dedicated legislation for hydrogen projects in Saudi Arabia”

station. The agreement brought together Air Products’ technical knowledge and experience in working with hydrogen and Saudi Aramco’s industrial experience, facilities and research and development capabilities. The fuelling station became operational in late 2019. As part of the agreement, a pilot fleet of FCEVs will be built, for which high-purity compressed hydrogen will be dispensed at the new fuelling station. Several research and development initiatives and activities are currently being carried out at the King Abdullah University of Science and Technology (“KAUST”) into hydrogen and fuel-cell technologies. The aim of these studies being to the realise the results within Saudi Arabia’s transport sector. Hydrogen technology is still at the early stages of development in the Middle East. However, there are clear signs that the some

Research and education

Air Liquide, Khalifa University, and Toyota distributor Al-Futtaim Motors have, in 2020, released a joint study that outlines the contribution of hydrogen to the energy transition and demonstrates the favourable prospects for hydrogen mobility in the UAE. Since 2014, Khalifa University has meconstructionnews.com

A BRIGHT FUTURE FOR HYDROGEN Hydrogen is the most abundant element in the universe and could provide a huge leap for countries trying to reach ambitious climate control targets.

MAY 2021 29

FEATURE

of the oil-rich countries in the Middle East could potentially endorse more industrial and commercial uses of hydrogen as part of their transition to a greener economy. The UAE, for instance, is well on the path to a more diverse, secure and sustainable electricity sector and therefore CO2-free hydrogen is of particular interest to UAE policy-makers, from a climate policy point of view. Earlier this year, the UAE Environment Minister was quoted as saying “hydrogen produced by renewables in the very best locations [in the UAE] could become cost competitive in the next five years”. The UAE, like most other countries in the Middle East, has sufficiently attractive resources for solar installations required to produce enough hydrogen to cover local demand. However, the UAE has two additional advantages: the availability of investment capital and a cooperative business environment, which could help it engage with the production of hydrogen and its potential as an export. In Saudi Arabia, there are few largescale projects, other than the plant to be built in Neom, mentioned above, and a hydrogen distribution system in the industrial city of Yanbu, built by Air Liquide. If these projects succeed, it is likely to lead to a new era of hydrogen developments throughout the Middle East. With its large natural gas portfolio, Egypt has the opportunity to start producing blue hydrogen by converting a portion of its natural gas resources into hydrogen, using carbon-

countries, there has been little private sector involvement in M&A activity or project financing, though both are expected in the coming years as the hydrogen sector grows. Legal framework

ZERO EMISSION TECHNOLOGY Fuel cell trucks, like the Xcient Fuel Cell, are part of a hydrogen ecosystem. Renewable sources (eg hydropower or solar energy) supply the electricity completely without carbon dioxide emissions.

Expo 2020 Dubai intends to showcase hydrogen mobility”

CLEAR ROUTE NEEDED FOR ADOPTION The Middle East needs a clear strategy for hydrogen, says CMS: “At present, there is no specific regulatory framework for the licensing and implementation of hydrogen projects in the UAE, Saudi Arabia or Egypt”.

30 MAY 2021

capture technology. In addition, Egypt is bordered by 2,450 km of coast, as well has having 1,530 km of the Nile River, placing it in a prime location to produce green hydrogen at scale and for low costs using electrolysis. Although a shift to a hydrogen economy might be a risk for Egypt, as a major natural gas-exporting country, it is a strategic chance to benefit economically and serve future decarbonised energy demand. Given its ample renewable energy resources, as well as its proximity to key markets, such as the EU, Egypt has outstanding opportunities to tap into new energy export markets. Given the early stage of development in these

The Middle East needs a clear strategy for hydrogen. At present, there is no specific regulatory framework for the licensing and implementation of hydrogen projects in the UAE, Saudi Arabia or Egypt. Mobilising private finance in support of a low-carbon transition is a challenge and investment in hydrogen projects is no exception. The planned USD 5 billion clean hydrogen-based ammonia production facility in Neom, Saudi Arabia, could be a model for securing further project financing. Similarly, in Egypt, one of the main challenges facing hydrogen energy is the cost of production. Producing, storing and transporting hydrogen, as well as building the necessary infrastructure, is expensive and likely to involve substantial capital expenditure compared to other renewable energy resources. However, some banks have expressed a willingness to provide debt funding. Representatives from the European Bank for Reconstruction and Development (“EBRD”) announced to the Minister of Electricity, during their visit in February 2020, that they were willing to invest in green hydrogen in Egypt. Also, in February 2020, a delegation from General Electric (“GE”) met with the Minister of Electricity offering to launch renewable energy projects in Egypt using hydrogen, in a bid to capitalise on demand for the latest innovative technological trend in renewables. In the UAE, Abu Dhabi is currently investing heavily in various sources of lowcarbon energy. The key question is how the Emirate will be able to efficiently integrate multiple energy sources into its electricity grid in the future, including nuclear, wasteto-energy, solar and thermal generation. A longer-term vision for Abu Dhabi also needs to set out policies and frameworks that accommodate emerging technologies and business models, including battery storage, electric vehicles and hydrogen fuel. In July 2019, the Emirates Authority for Standardization and Metrology (“ESMA”) announced that it had completed the draft technical regulations for hydrogen-powered vehicles. The UAE is the first country in the MENA region to establish legislation for the future of the environmentally friendly meconstructionnews.com

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FINDING FLEET FINANCE Mobilising private finance in support of a low-carbon transition is a challenge and investment in hydrogen projects is no exception, says CMS.

vehicles industry. Currently, there is no enabling regulatory framework for hydrogen projects in the UAE. Hydrogen projects could be subject to a number of laws and The UAE Energy Strategy 2050 targets an energy mix that combines renewable, nuclear and clean energy sources to meet the UAE’s economic requirements and environmental goals. According to this strategy document, by 2050, 44% of the country’s energy must come from clean energy sources which include low carbon hydrogen. Currently, there is no dedicated legislation for hydrogen projects in Saudi Arabia. The Basic Law of Saudi Arabia (Royal Decree No. A/90 dated 27/8/1412 H (1 March 1992)) vests all the Kingdom of Saudi Arabia’s oil and gas wealth in the Government. The Ministry of Energy, Industry and Mineral Resources (“MEIM”) regulates, develops and implements policies relating to oil and gas and represents the Kingdom’s oil production and pricing policies internationally. MEIM supervises the activities of Saudi Aramco, a 100% government-owned enterprise that has exclusive access to oil and gas exploration, drilling and production in Saudi Arabia. Currently there is no unifying law which applies specifically to hydrogen projects in Egypt. Instead, the existing laws for the gas, transport and water sectors apply to hydrogen, which is classified as a gas under the Gas Market Law No. 196 of 2017 (the “Gas Market Law”). The gas market is mainly regulated in Egypt by virtue of the Gas Market Law. “Gas’” is defined broadly under this law to be “a mixture of hydrocarbon and non-hydrocarbon components, which exists in a gaseous state under standard conditions, including gas associated with oil or shale gas or extracted from biomass (biogas), as well as any other unconventional types of gas, whether it is liquefied or pressed or in a gaseous state, after meconstructionnews.com

Egypt has adopted an ambitious energy diversification strategy”

treatment and separating any commercial derivatives such as condensate, butane, commercial propane, ethane-propane mixture according to the national network standard specifications, and it is considered a product that can be sold and traded in the markets.” The Law provides for the establishment of a public body to be the regulator; this is the Gas Market Regulatory Authority. The Authority is responsible for regulating, licensing and overseeing all gas-related activities. The Law divided gas-related activities into (1) services activities, and (2) market activities. “Service activities” includes the operation of

gas grids and facilities through transmission, storage, distribution of gas as well as LNG and regasification activities; “market activities” covers gas shipping and supply. Regulation and national strategies specific to hydrogen and hydrogen technology will need to be put in place over time in Egypt in order to regulate the production, storage and transportation of hydrogen. Regulatory reform will be a key area of focus if Egypt wants to deploy a hydrogen economy. Until this reform happens, any hydrogen project will be governed by the existing gas, energy, water and environmental regulations.

SHARING THE LOAD Sharing the Green Deal vision of sustainable transport and a carbon neutral Europe by 2050, two leading companies in the commercial vehicle industry, Daimler Truck AG and the Volvo Group, have signed a preliminary nonbinding agreement to establish a new joint venture. The intention is to develop, produce and commercialize fuel cell systems for heavy-duty vehicle applications and other use cases. Daimler will consolidate all its current fuel cell activities in the joint venture. The Volvo Group will acquire 50% in the joint venture for the sum of approximately EUR 0.6 billion on a cash and debt free basis. “Transport and logistics keep the world moving, and the need for transport will continue to grow. Truly CO2-neutral transport

can be accomplished through electric drive trains with energy coming either from batteries or by converting hydrogen on board into electricity. For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades. This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads,” says Martin Daum, Chairman of the Board of Management Daimler Truck AG and Member of the Board of Management of Daimler AG. “Electrification of road transport is a key element in delivering the so called Green Deal, a carbon neutral Europe

and ultimately a carbon neutral world. Using hydrogen as a carrier of green electricity to power electric trucks in longhaul operations is one important part of the puzzle, and a complement to battery electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole. By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development, not least in order to establish the fuel infrastructure needed,” says Martin Lundstedt, Volvo Group President and CEO.

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PARTING SHOT

A CLASS APART

Glasgow Consulting Group’s data shows how different the UAE market is compared to the rest of the world

lasgow Consulting Group (GCG) has analysed the car market in UAE over the past 10 year’s data and this has revealed an interesting picture which is markedly different from the scenario across other parts of the world. Globally the car sales data shows higher percentage of Saloon/Sedan vehicles around 40% to 45% and SUVs around 20% to 30% depending on the country, however the UAE data showed the exact reverse data where SUVs dominate with 40% to 45% and Saloon/Sedan around 35%, the remaining accounted by Vans, MPVs, etc. GCG analysis by body type of cars and size of cars in UAE revealed that SUVs dominate and the sub-compact SUVs are growing fast particularly among younger drivers. The SUV group definition is becoming more and more blurred and quite often does not show the real picture- 4x2 v 4x4, off road capability, size, crossovers etc.

The UAE passenger car VIO (vehicles in operation) of cars with age not more than 10 years is approximately 3 million and SUVs account for 43% of this. A look at the top 10 models As still one of the most prosperous economic regions in the world, the Middle East attracts all automotive manufacturers. The major manufacturers develop models specifically for the Middle East which has the most potential of any region or is probably currently their biggest SUV market. The UAE is not too dissimilar to other ME countries in respect of SUVs versus saloon cars. While luxurious sports cars and executive saloons still target the most affluent individuals, SUVs are the car of choice for most car owners. It is a lucrative market from small SUVs to the large all-terrain SUVs and so advertising and marketing spend is higher than average and probably higher than for saloon cars. The UAE, and Middle East generally, remains a region where motor vehicles are a key purchase and essential, making the buying

choice a very informed decision and vehicles are more important than in other countries. ME countries generally have some challenging natural terrain and so an SUV is often seen as essential, although this aspect is gradually changing. At the same time, the UAE’s and Middle East’s climate and geography generally often means drivers are driving in hot and humid conditions which makes a large dependable vehicle with air-conditioning, cruise control and in-car entertainment etc highly desirable plus the perceived greater safety and high driving position In contrast to the US and Europe, SUV sales also take a larger market share as fuel prices are less of an issue, off roading is still allowed and needed in some countries, and families tend to be larger in number. SUVs are seen as safer vehicles particularly in a crash. Full specification SUVs are affordable to the locals and the expats tend to purchase mid -range specs. Cheaper credit is becoming a key player for the smaller SUVs.”

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32 MAY 2021

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PARTING SHOT

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