Automotive Manufacturers Spot Potential in Middle East, North Africa; Commercial Vehicles to Witness Robust Demand

Commercial vehicles are finding extensive utilization in logistics and transport application, across the globe. Along with the surging growth in the global commercial vehicles business, the Middle East and North Africa (MENA) region has also showcased an effective potential for the commercial vehicle manufacturers. The growth exhibited by the construction sector and the advancements in transport and logistics application sectors act as major contributing factors for the demand growth of commercial vehicles in MENA countries.

Car Manufacturers Mulling over the Potential in MENA with New Developments

The automotive sector has reflected burgeoning growth in the MENA region over the past couple of years. Automotive manufacturers are eyeing on the extensive opportunities offered by the region to further strengthen their global footprint and gain profitability on the back of the exceeding demand for commercial vehicles.

The German automotive giant, Mercedes-Benz, for instance, showcased similar attraction towards the MENA region. In 2018, the company took its existing fleet of commercial vehicles including the premium heavy-duty trucks to Middle East and Africa. The new Mercedes-Benz Actros and Arocs are designed to offer next-gen reliability and efficiency for distribution and long distance freight. These trucks are robust and completely reliable for off-road and construction applications, making them ideal for the ever-growing construction sector in the Middle East and Africa. Moreover, the trucks are specifically developed for the MENA region, built to withstand harsh operating conditions.

There are several strategic developments made across the region for boosting the production of commercial vehicles. The North African market has witnessed similar collaborations that are expected to further fuel the production of commercial vehicles. For instance, the South Korean automaker, Hyundai Motor Company entered into a joint venture partnership with Algeria’s Global Group for manufacturing commercial vehicles in North Africa, by setting up a complete knockdown (CKD) unit assembly plant.

Tata Motors, a leading provider of commercial vehicles in India is engaging in robust exports of commercial vehicles as it is witnessing substantial demand for commercial vehicles such as buses and trucks from the regions including the Middle East, SAARC, Africa, and South East Asia where it ships its commercial vehicles.

Emission Standards to Redefine Automotive Fleet in MENA Region

The region has witnessed tremendous developments in terms of adopting a more sustainable approach in the automotive domain. The countries in the Middle Eastern region are increasingly promoting environment-friendly, cost-efficient, and fuel-efficient, vehicles which are expected to bring major transformations in the automotive sector, thereby influencing the commercial vehicles domain. The governments are making efforts to incorporate green vehicle units, especially into the public transport fleet. The UAE’s Emirates Authority for Standardization and Metrology (ESMA) mandated a Euro 4 regulation, from 2018 to encourage utilization of sustainable vehicles in UAE.

Commercial vehicles manufacturers are introducing commercial vehicles in compliance with these regulations. For instance, a UAE distributor of Volvo Trucks, Al-Futtaim Auto & Machinery Company (Famco), went further of the Euro 4 regulations and launched the Volvo Trucks that are built in compliance with the Euro 5 emission standards, which supports the UAE Government’s Vision 2021, for providing safer environment and contribute to a sustainable future.

Substantial Demand Witnessed for Heavy-duty Commercial Vehicles in MENA

The heavy duty type of commercial vehicles is creating tremendous demand in the region, owing to its increasing application. Companies are reaping the profitability associated with heavy-duty commercial vehicles by expanding their commercial vehicle portfolio. For instance, a Japanese manufacturing trucks and buses, UD Trucks, with an aim to expand its heavy-duty truck segment, added a new commercial vehicles variant, the new heavy-duty Quester. Designed to address the variations demanded in the Middle East, these new heavy-duty commercial vehicles are built to withstand harsh driving conditions. Furthermore, the company aims to leverage the overwhelming demand for commercial vehicles such as heavy-duty trucks backed by the propelling infrastructure and stimulating construction sector, with these new offerings.

Electric Vehicles Trend to Influence the Commercial Vehicles Landscape

Demand for electric vehicles has been multiplying across the globe over time. This increasing demand has greatly influenced the commercial vehicles landscape, where commercial vehicles manufacturers are focused on achieving greater efficiency by innovating in electrified commercial vehicles. Companies are making for making effective progress in manufacturing electric commercial vehicles. For instance, giant automotive companies and commercial vehicle manufacturers are bullish over the opportunities sighted in MENA region for the commercial vehicles business.

Readers can further analyze the MENA commercial vehicles landscape by referring to the key findings and exclusive insights that uncover the opportunities traced in the MENA region in a comprehensive research study.

About Sandali 225 Articles
A former journalist, Sandali is a content marketer with over 5 years of writing experience, across various industries including Food Innovation, Healthcare, and IoT and Technology. Sandali has been weaving corporate stories for organizations through different forms of impactful marketing content. Her key aim is to strategically align well-crafted narratives with business objectives, translating into a powerful communications platform for the company.