UD Trucks reports stellar performance in 2022, averaging 30 per cent growth across MEENA region

Staff Report,

23 Jan 2023

Sales rose 35% in Qatar and 32% in Saudi Arabia as Japanese truck heavyweight continued market success for the second year in a row

UD Trucks has reported a successful year in the Middle East, East and North Africa (MEENA) region in 2022, registering high growth figures of an average of 30 per cent.

The Japanese truck manufacturer said the positive performance for the second year in a row strengthens its “position as a market leader in a largely European-dominated regional truck market”, adding that it continues to place its “’Better life’ Strategy for people and the planet at the core of its objective to become the Japanese Sustainability Leader by 2025”.

Mourad Hedna, president of UD Trucks MEENA, said: “2022 has been an excellent year for UD Trucks in the region, a confirmation year that its trucks, services and values are well appreciated by our customers. UD is clearly recognised as a brand providing its customers with efficient, reliable and cost-effective products and services.”

Among the positive stories for UD Trucks in 2022 was the 35 per cent rise in the sales of its heavy-duty trucks in Qatar. The company said this was thanks to its “reputation for producing robust and modern trucks” and it also contributed to UD Trucks’ steady performance in other key segments, including the waste management and construction sectors in the UAE.

In Saudi Arabia, which is UD Trucks’ largest market by volume in the region, the brand saw a 32 per cent rise in sales along with an expansion into all market segments, from construction and logistics to waste management. UD Trucks is involved in a large number of large, prestigious projects in the Kingdom with its partners, such as with the NEOM project, said the company.

The Volvo Group truck maker added that its ‘Better Life’ sustainability strategy for the planet has further contributed to its growth and enabled it to enter other key regional segments.

One of these was a project in Kuwait in which irrigation vehicles were used to clean up waste oil contamination from the soil as part of the Gulf country’s second soil remediation project.

In Iraq, UD Trucks provided water tankers, vacuum trucks and jet cleaners to the Babil municipality, while in Abu Dhabi, UD Trucks took a lead in waste management projects after winning a large portion of the business, helping to position the brand as a leader in this field.

The brand also introduced its Euro5-compliant Quester model with ESCOT in the region in 2022, as well as the Croner PKE19 with automatic transmission.

In the African market, UD Trucks saw significant deliveries of vehicles primarily intended for general cargo use, despite the hard economic conditions and currency shortage. The company’s statement said Ethiopia and Uganda were its biggest markets last year while further countries are set to be added to its operations in 2023 as part of its expansion plans on the continent.

According to UD Trucks, its focus has been on efficiency, uptime and customer service, and, together with its partners, it has “invested significant time and resources in developing a network of workshops across the region to meet customers’ needs”.

UD Telematics has also achieved a penetration of more than 40 per cent in targeted markets to become a key USP for the brand. The telematics service helps customers by providing information in real-time about vehicle location, speed, fuel consumption, driver behaviour and other relevant data to improve uptime and total cost of ownership. By optimising its fleet management processes, UD Trucks said it helps fleet managers to increase efficiency and reduce costs, resulting in improved customer satisfaction.

The company also registered a 35 per cent penetration of its comprehensive service agreements in 2022. According to UID Trucks, these agreements ensure “greater control over costs and easier administration, thus providing full peace of mind to fleet managers”.

In order to improve the services it offers to customers, UD Trucks also embarked on an extensive upskilling programme for its staff in the region last year. Some 2,135 hours of technical, soft skills and driver training were conducted for over 1,000 personnel over the 12 months of 2022, both in-person and online, said the company. These sessions were based on blended learning modules and physical training, and were designed to facilitate competence development, while reducing costs.

Under UD Trucks’ ‘Better Life’ strategy, and in line with the company’s commitment to focus on people, the company launched several initiatives in 2022, including supporting the Arabian Ocean Rowing team to raise awareness of plastic pollution and environmental sustainability, as well as supporting employees and partners participating in Dubai Marathon to promote physical and mental wellbeing.

Hedna added: "With a strong foundation in place, we are on track for another successful year in 2023. We will continue to work on our growth and customer satisfaction in all areas.”