LogisticsGulf.com conducted an exclusive, one-on-one interview with Mourad Hedna, President, UD Trucks Middle East, East and North Africa (MEENA) on the sidelines on the ceremonies in Jeddah.
LogisticsGulf.com was part of the media delegation especially invited by UD Trucks and the Zahid Group that recently travelled to Saudi Arabia to witness and report on a slew of events that included the official launch of the famed UD Trucks Euro 5 legacy series truck in the Kingdom.
The following are transcripts of that direct Q&A session.
LogisticsGulf.com LG: How has UD Trucks performed to date in the region in 2023 and how does it compare with your 2022 performance? What is your outlook for 2024 going forward?
Mourad Hedna (MH): UD Trucks enjoyed a strong year in the MEENA region in 2023, surpassing our achievements in 2022.
We witnessed a double-digit increase in retail sales in Saudi Arabia, reflecting the market’s growing demand for environmentally friendly fleets. Additionally, our expansion efforts in the GCC and East Africa regions, including securing second place in market share in Uganda and plans to set up local assembly in Kenya, further strengthened our position as a leader in the industry. Looking forward to 2024, we remain optimistic about our growth prospects.
With the on-going roll-out of the Euro 5 series and other initiatives to enhance customer support and expand our product offerings, we anticipate continued success in the region, driving towards our vision of delivering sustainable transportation solutions and fostering a better future for generations to come.
LG: What are your brand strengths and how are you leveraging these to gain a larger market share?
MH: UD Trucks’ brand strengths lie in our commitment to innovation, reliability, and customer satisfaction. We leverage these strengths to gain a larger market share by focusing on delivering superior products and services tailored to the specific needs of our customers.
Our reputation for durability and reliability, coupled with our comprehensive support offerings and strong local partnerships, sets us apart from our competitors. Our Quester and Croner models tailor their emphasis on three primary objectives: advancing efficiency and reducing total cost of ownership (TCO), boosting uptime, and prioritising environmental sustainability.
Additionally, a refined engine configuration, alongside cutting-edge UD Telematics technology for live vehicle tracking and geo-fencing, plays a pivotal role in fostering an eco-friendlier and streamlined transportation environment.
By prioritising customer needs and providing solutions that enhance operational efficiency and profitability, we aim to solidify our position as a preferred choice in the market and continue expanding our market share across the region.
LG: Today is a milestone day as it marks the unveiling of the landmark Euro 5 Series—Euro 5 Quester and Croner models. Explain the significance of this launch and inauguration?
MH: It quite is a significant day for us and our partner, Zahid Tractor, comprising the Euro 5 Quester and Croner models. This launch represents our commitment to sustainability and innovation, aligning with Saudi Arabia Vision 2030’s goals for a greener future.
The Euro 5 Series incorporates advanced technologies to minimise environmental impact and improve operational efficiency, setting new standards for excellence in the industry. By introducing these models, we aim to support businesses in their transition to more sustainable transportation solutions, driving towards a better and cleaner future for the region and beyond.
LG: What are UD Trucks’ USPs (unique sales propositions) / distinctive traits / advantages that set you apart from your competitors / peers for these specific models?
MH: The Euro 5 Quester and Croner models offer several unique selling propositions that set them apart from competitors. An example is the significant reduction in NOx emissions by 43% compared to Euro 4 standards, reflecting our commitment to environmental stewardship. Another aspect is the enhanced durability and reliability, ensuring maximum uptime and operational efficiency for our customers.
Also, the factory-fitted Allison automatic transmission brings effortless stop-start operations in all driving conditions, providing unmatched driving experience and ease of operation. Flexible and versatile design also allows for easy superstructure installation and adaptation to various waste management applications, meeting the diverse needs of our customers. Moreover, other USPs include our Driver Guard, technology training, best-in-class customer support and strong local partners.
LG: How significant is Saudi Arabia for UD Trucks and is the country a top export destination for the brand?
MH: Saudi Arabia holds immense significance for UD Trucks as a key market and strategic hub in the region. With the launch of the Euro 5 range and the establishment of local assembly facilities in the Kingdom, we are further strengthening our presence and commitment to the Saudi market. Additionally, Saudi Arabia serves as a top export destination for UD Trucks, reflecting the country’s growing demand for quality transportation solutions and our reputation as a trusted partner in the industry.
Moreover, the new Euro 5 range will be UD Trucks assembled in our partner Zahid Group’s Arabian Vehicles & Trucks Industry (AVI) facility in the King Abdullah Economic City (KAEC). These steps help ensure the brand’s readiness as we are engaged in prestigious projects in key areas of the Kingdom that include Neom and the Red Sea.
UD Trucks and Zahid Tractor are fully committed to support the fast-paced Saudi Growth towards the Kingdom’s grand and ambitious 2030 Vision.
LG: UD Trucks are now being assembled in the Kingdom of Saudi Arabia at Zahid Group’s Arabian Vehicles & Trucks Industry (AVI) facility in the King Abdullah Economic City (KAEC). Tell us more.
MH: Of course. This local assembly initiative underscores our commitment to supporting the country’s economic development and creating local job opportunities.
By assembling trucks locally, we can better cater to the specific needs of the Saudi market, reduce import costs, and enhance our competitiveness. Moreover, it demonstrates our long-term commitment to the Kingdom and strengthens our partnerships with local stakeholders.
LG: What in your estimation is the (purchase) appetite for these models in the Kingdon and beyond in the region?
MH: We anticipate a significant purchase appetite for the Euro 5 models in Saudi Arabia and beyond in the region. The introduction of these advanced and environmentally friendly trucks aligns with the market’s growing demand for sustainable transportation solutions, accelerated by the Kingdom’s Vision 2030.
With their unique features, including reduced emissions, enhanced durability, and superior performance, we believe the Euro 5 Quester and Croner models will be well-received by businesses looking to transition to greener fleets and improve their operational efficiency.
LG: What are your expansion plans for the region?
MH: UD Trucks is committed to expanding our presence and offerings in the region to better serve our customers and support their evolving needs.
Our expansion plans include continued investment in local manufacturing and assembly facilities to strengthen our presence in key markets such as Saudi Arabia. Additionally, we aim to introduce new products and technologies tailored to the specific requirements of the region, including alternative fuel solutions and advanced telematics systems. Furthermore, we plan to expand our service network and support offerings to enhance customer satisfaction and maximise uptime for our vehicles.
Our expansion is also beyond the Middle East, but also includes East Africa. We are now second in market share in Uganda and are setting up local assembly in Kenya this year. We have also appointed a new partner in Egypt, which we will be announcing this year towards the end of the second quarter.
Also, collaboration with industry partners and stakeholders will remain a priority as we seek to drive innovation and address emerging challenges in the transportation sector, ultimately contributing to a more sustainable and prosperous future for the region.
