Commercial Trucks OpEd

How the GCC commercial vehicles sector coped with the pandemic fallout

The pandemic has restrained growth across the board in the various facets of supply chain sector as many governments restricted the movement of goods across countries due to Covid-19. So how has the industry responded to the challenges posed by the pandemic? Ramez Hamdan, Managing Director–Industrial Equipment (FAMCO, HINO, Toyota Material Handling), Al-Futtaim Automotive, shares his insights.

It is a truism that commercial vehicle makers have also felt the impact due to trade restrictions and consumption decline, forcing manufacturers to slow down, or even halt production altogether due to lack of parts and components.

As the world continues to grapple with the worst crisis in living memory, the silver lining for commercial vehicle distributors came as a result of the meteoric rise of e-commerce – a trend which has been significantly more poignant in the GCC compared to other, more mature markets, where e-commerce penetration was already high.

In fact, during the lockdown period in the UAE last year, Al-Futtaim Commercial Vehicles (AFCV) recorded our highest sales for HINO trucks in a single month, largely due to the popularity of our HINO 300 Series light truck, which is ideal for e-commerce bulk pick up and deliveries.

During the strict lockdown period we were also able to obtain the necessary approvals from the respective UAE authorities and dedicated more resources to highdemand sectors such as FMCG, waste management, logistics, e-commerce and water distribution to ensure these critical sectors continued to operate smoothly.

Adherence to safety

We followed world-class standards for health and safety for our staff and customers, enabling us to provide total support to our customers without delay or disruption.

As a whole, the commercial vehicles sector is a key contributor to the AED220bn UAE logistics industry which ranks third globally behind China and India.

According to the UAE Federal Competitiveness and Statistics Authority, the commercial vehicles sector is forecasted to contribute 8% to the UAE economy during this year.

The role of e-commerce in this growth in the UAE is significant considering that online shoppers in the Emirates spend an average of US$ 122 per transaction, compared to US$ 76 in mature markets and US$ 22 in emerging markets.

In a nutshell, the higher the appetite and demand for online parcels and deliveries, the higher the demand for logistics services, from fulfillment, to storage all the way to last mile delivery.

Ramez Hamdan

E-commerce rising

The e-commerce sector in the GCC is set to reach US$ 50bn by 2025, on the back of strong growth driven by the Covid-19 pandemic. This projected surge in demand for e-commerce services in the region has underpinned a growing demand for the creation of more warehousing facilities, which is another area of AFCV specialization, with our wide range of Toyota Material Handling equipment’s.

With ever growing investments by the region’s two major platforms, Amazon and noon, e-commerce will continue to flourish, and with it, logistics services providers need to keep up with soaring demand for storage and delivery. This domino effect means that demand for commercial vehicles and storage

equipment in the region will continue to rise.

Relevance is the key, whether facing the chaotic effects of a global pandemic or the unpredictability of technological innovations that are currently in the lab and will soon be on the roads.

Ultimately, the commercial vehicles sector and by extension supply chains and relevant industries and sectors, have an imperative need to continually adapt and overcome the challenges presented by the ever-changing business environment. The commercial vehicles sector must be well prepared to offer solutions and support to requirements as those arise.

At AFCV, we try to stay ahead of developments and doubled efforts to satisfy the sales and after sales activities following demand patterns and trends as required by our customers and business partners operating in essential industries.

AFCV Bee’ah.

Al-Futtaim HINO delivers 32 trucks to Bee’ah in Q1-2021

Delivery strengthens company’s position in the Waste Management sector

Al-Futtaim HINO, franchisee of light, medium and heavy-duty HINO trucks in the UAE, has completed the delivery of 32 HINO trucks to Bee’ah, the Middle East’s sustainability pioneer and fastest-growing environmental management company.

This brings the total number of HINO trucks operating in Bee’ah’s fleet to 133.

The new deal further strengthens the Al-Futtaim company’s position in the Waste Management sector in the UAE following a deal last year with West Coast Saubermacher to supply 220 light, medium and heavy-duty HINO trucks.

Bee’ah will deploy the HINO light-duty Model HINO 300 Series 714NWB, 916XLWB and medium-duty HINO 500 series FD1024, FG1625, GH1927 trucks across its operations in Sharjah and Ajman.

“HINO trucks product adaptability, specification and durability give us a clear dominance in the Waste Management sector. This is primarily due to the continued trust customers place in our products and our unique after-sales service–‘HINO Total Support,” remarked Ramez Hamdan, Managing Director–Industrial Equipment (FAMCO, HINO, Toyota Material Handling), Al-Futtaim Automotive.

In addition to providing service and parts, the Al-Futtaim group company is also supporting Bee’ah with its ‘HINO Total Support’ concept where experts from Al-Futtaim’s Commercial Vehicle Division provide eco-driving training to truck drivers to help them optimize total cost of truck ownership, a press communiqué stated.

This training helps fleet operators improve fuel efficiency, minimize the cost of wear and tear, reduce service and maintenance costs as well as insurance premiums and decrease the risk of major road accidents.

HINO has partnered with Al Shirawi Equipment and Precision Machinery for the customization of the body fabrication of the trucks to suit the specialized waste collection needs of Bee’ah.