DRIVEN FOR GROWTH
from trucks and vans to specialised transport used by the authorities. For example, Dubai Police are getting some new, cleaner cars to sit alongside its supercar pursuit vehicles. The department has added the BMW i3 electric car to its fleet of amazing vehicles.
UAE energy minister Suhail Al Mazrouei said the country plans to grow its electric car fleet to comprise 10 per cent of all government vehicles, to help lower total carbon emissions by 15 per cent over the next four years.
Government-driven
Fuel technologies such as hybrid and compressed natural gas (CNG) will also change the market. “We’ve seen impressive initiatives from regional governments to embrace alternative sources of fuel,” says Thomas Greipel, General Manager, Mercedes-Benz Vans Middle East and North Africa. “But given the affordable gasoline and diesel prices, transition to alternative fuels will take time as the alternative energy infrastructure develops in the region.”
He says his company aims to be at the forefront of the action: “As we truly enter the age of automation and the internet of things, innovation in logistics is becoming critical.” The company’s Vision Van involves driverless vans with delivery robots supported by drones, all aimed at revolutionising how products are delivered. “We are turning the van into a networked and fully electric logistics centre on wheels,” Greipel says.
Mourad Hedna is president of UD Trucks Middle East, which has also been embracing innovation in its vehicles to meet the growing demand and increased competition.
“The market is in a constant stream of innovation from multiple competing companies in the domain of machinery and truck manufacturing specifically. Our plan for 2017 was to develop a multipurpose truck that meets the wide variety of needs specific to the region, including off and on-road use, construction, distribution and longhaul transportation. And so, the launch of the new heavy-duty Quester range in 2016, was a major step forward for the company.”
UD Trucks also recently launched its Croner range in the Middle East and Africa, a medium-duty truck combining the company’s strong Japanese heritage and craftsmanship, Volvo Group’s global technology and sourcing, and local manufacturing and customer support.
Emissions excellence
Hedna agrees that new fuel technologies are already shaping the commercial vehicle sector’s future. Although the focus is now on the passenger car segment, he sees the trend slowly entering the commercial vehicle market.
“In the life cycle of a truck, the largest share of greenhouse emissions released comes from CO2 generated during the actual operation of the truck. In 2004, UD Trucks developed the world’s first ureabased selective catalytic reduction (SCR) system for trucks. A combination of ultra-high-pressure fuel injection and the Urea SCR System resulted in the development of the cutting-edge Final Low Emission New Diesel System, which provides a dramatic reduction in particulate material, NOx and emissions, a further reduction in CO2 emissions and improved fuel efficiency.”
The focus on driver comfort and performance is another trend to watch as we enter 2018. Some manufacturers now mechanically modify their vans to meet the heat, dust and local fuel quality of the region. This includes engines and powertrain features that are particularly designed for local fuel quality, as well as enhanced AC systems developed to perform in hot, humid weather.
Globally, there has been a gradual increase in the use of vans and other commercial vehicles for social and domestic purposes as consumers increasingly appreciate that they are well-built, designed to withstand robust treatment, extremely practical, and often safer.
As an interesting side note to this, the growth of e-commerce has led to even more demand for vans of all variants, as the sector requires delivery vehicles for last mile delivery to consumers. This is true of the GCC, where a move towards online shopping and home deliveries is expected to be an important contributor to the growth of vans in the region.
According to Marmore MENA Intelligence, the GCC e-commerce industry is expected to grow at a compound annual growth rate of 30 per cent, from $5 billion in 2015 to $20 billion at the end of 2020.
The increasing urbanisation of the region will also have a positive effect on the vans industry. A rising number of people are living in cities, and experts say by 2030 urban areas will be home to more than two thirds of the world’s population.