Leading With Purpose

Luck is defined as preparedness + opportunity. UD Trucks had been prepared to face the consequences brought on by the pandemic from the day it began operations. Plant & Equipment reports on 2020’s steady growth.

Customer satisfaction and relationships stand at the core of UD Trucks’ brand values - characteristics which paid off during the pandemic last year.

While most businesses saw setbacks, UD Trucks continued its journey of growth across the Middle East. Of course, the numbers were not as per their expectations and efforts, but the company improved market share in the majority of its regional markets, as well as increased sales by six percent (versus 2019), in a market that experienced an overall decrease.

The positive performance was built on the company’s continued, comprehensive and consistent strategy for growth, which is based on customer focus and satisfaction, a strong partnership with its regional partners and employees’ engagement. And unlike most businesses, this didn’t begin after the pandemic last year, but has been a part of the brand’s DNA.

The trucking industry was hit hard during the start of the pandemic. “It was a crisis on multiple levels,” says Mourad Hedna, President of UD Trucks MEENA. “It was a crisis of health and safety, demand and supply and a global lack in business confidence.”

Mourad Hedna, President of UD Trucks MEENA.

UD Trucks’ immediate focus was their employees’ health and safety followed by properly supporting and communicating with their customers, partners and dealers. Maintaining a sustainable cost and cash flow also remained top of mind for the business as well as the supply and availability of parts. Their Dubai warehouse was closed only for 16 hours for sterilization and continued to operate in two shifts daily.

Warranty terms were extended for customers whose contracts expired within the lockdown period to alleviate any concerns they may have regarding vehicle maintenance and repair needs during these challenging times. Complimentary online training was also provided for all partner and customer teams.

Region report

Business in the Kingdom of Saudi Arabia started very well as a continuation of the partnership with Zahid Tractors announced in December 2019. UD Trucks succeeded in almost doubling its sales in the country. It is now working on a local assembly plant where heavy and medium duty UD Trucks will be manufactured and assembled in the country.

The overall GCC market went down 20 to 30 percent segment to segment and country to country last year. Oman fared quite badly for the company with a 50 percent reduction in business while the UAE business reduced by 20 percent. On the other hand, in Qatar and Bahrain, UD Trucks was the top performer in heavy and medium duty trucks, with Qatar growing by an impressive 14 percent. In all countries, UD Trucks has continued to have repeat customers.

Retail business showed a lot of customer uncertainty till August 2020. The numbers picked up after that. Wholesale performed quite similarly as factories closed in Sweden, Japan and Thailand. Once the factories reopened four to five weeks later, business improved. Aftermarket sales saw a significant drop in April and May whereas the following months saw a three percent increase in the sale of parts as compared to 2019. Service sales saw a 23 percent increase with telematics and a 30 percent increase with service agreements.

Simultaneously, UD Trucks continued to invest significant resources in East Africa as it rolled out ambitious new plans for its Kenya operations. CMC Motors Ltd, the local distributor, developed and expanded the brand both locally and regionally. The importer offers customers the new range of the Quester and Croner models, which deliver unique solutions for every application.

Looking ahead

A continuous 360-degree growth strategy considering global trends is what has put UD Trucks head and shoulders ahead of its peers. The company is now set to launch “Better Life” strategy. This is aimed at a more rewarding existence for its people and the planet by delivering sustainable logistics solutions. The company will aim to have the lowest impact on the environment, be a leader in customer satisfaction, and provide customers with best-in-class trucks and services.