On account of the rapidly growing activities such as construction, mining, and petrochemicals, the demand for commercial vehicles has significantly risen worldwide. There is a growing preference for commercial vehicles witnessed over transportation vehicles on the back of their high-level productivity and effective performance in operations such as picking and dropping. Apart from these applications, commercial vehicles are also being used in the process of waste management. With the increasing significance given to supplying raw materials and minerals has further boosted the demand for commercial vehicles in the MENA region.
This demand for commercial vehicles is further bolstered by expanding the mining industry in the MENA region. The production of commercial vehicles is expected to gain momentum owing to these factors. The commercial vehicles market is also driven by the sustainability trend and the emphasis given to electric vehicles. Commercial vehicle manufacturers are introducing electric variants of commercial vehicles to align with the electric vehicle trend.
Supply of Commercial Vehicles Surges as Waste Management Catches Pace
With profitable avenues sighted in the MENA commercial vehicles market on account of the growing waste management initiatives being undertaken, the supply landscape has expanded on a large scale. Companies are introducing new commercial vehicle variants to address the demand created by the region.
MAN Truck & Bus Jordan, for instance, recently supplied 101 MAN trucks at the Greater Amman Municipality (GAM) initiative. The introduction of these commercial vehicles is in the wake of the initiative to make the city of Amman greener and cleaner for visitors and residents. The new fleet of trucks is offered with a two-year repair and maintenance contract. GAM currently manages about 4000 tons of solid waste each day which has placed an unmatched pressure on the solid waste infrastructure. The disposal of recyclables, bulky waste, construction site waste, electronic scrap, sewage, and organic waste are further posing a challenge for the waste industry. The MAN Truck & Bus is exceptionally positioned to address these challenges with its fleet of customized vehicles designed for specific tasks.
Emerging Manufacturing Facilities Witnessed Across Middle East
With the increasing number of opportunities reflected by the MENA region, companies operating in the commercial vehicles market are expanding their manufacturing capabilities and other facilities in this region.
Mercedes-Benz, a leading automobile manufacturer recently announced the introduction of its outstanding training center in Dubai Production City—a member of the TECOM group. The facility is particularly created for all Authorized General Distributors and Dealers for Mercedes-Benz Cars Middle East and Daimler Commercial Vehicles MENA. It would bolster the existing Middle East training capabilities and aid in ensuring the maintenance of global service standards.
Nissan Motor Company Limited and Groupe Hasnaoui recently announced their joint venture with an investment valued at nearly $160 million in the Nissan vehicle manufacturing facility in Algeria. This expansion is focused on meeting the growing customer demand in the economy and across Africa. Having a capacity to develop 63,500 light commercial vehicles and passenger cars annually, the plant will produce several variants. Nissan aims to grow its market presence in the Middle East, Africa, and India with such initiatives.
Commercial Vehicles Manufacturers Heading towards Sustainable Growth
Electric variants of vehicles are gaining an imminent place in the market. Automobile manufacturers are shifting their focus towards electrically-powered commercial vehicles in an attempt to foster their sustainability goals. Owing to this, a number of electric commercial vehicles are being introduced to the market.
Electric variants other commercial vehicles such as buses are also being introduced. BYD, a leading automobile manufacturer in China recently signed an agreement with Egyptian Passengers Transportation Authority to provide buses for the public transit fleet in Arab. This bus is an environmentally-friendly bus that is expected to reduce operating costs. For Egypt, the use of electric buses would help cut down on carbon emissions and further foster their efforts towards sustainability.
Such innovations are opening new opportunities for the providers of commercial vehicles such as trucks to introduce electric variants in the MENA region.
More such developments and future opportunities are elaborated in the extensive MENA commercial vehicles market study. Readers can avail key insights pertaining to the market by accessing the sample of the study.