This month, I’ve spent a good deal of time ‘behind the scenes’ of the region’s PMV industry. Few would doubt the importance of the work conducted by front-of-house staff, but we shouldn’t forget the activities of the sector’s support workers. Salespeople might operate on the front line in the battle for market share, but it’s the workshop warriors who are responsible for the long-term success of brands.
Travelling to Abu Dhabi to see Emirates Motor Company’s (EMC) commercial vehicles facility represented somewhat of an eye-opener for me. I knew, of course, that the provision of aftersales support for a manufacturer like Mercedes-Benz would involve significant resources and manpower, but I hadn’t really grasped just how significant until I visited in person.
EMC’s commercial vehicles activities are certainly impressive, both in terms of their scale and complexity. However, there are plenty of other Middle Eastern channel partners working diligently to deliver comprehensive aftersales support to their respective brands’ end users. A diverse range of strategies are being employed to support end users across the region.
“Put simply, there are three different approaches to aftersales support,” said Lars Möller, general manager for aftersales at Al-Shirawi Enterprises (ASE), Scania’s authorised distributor for Dubai and the Northern Emirates.
“Historically, the industry has tended towards the ‘repair-after-failure’ model. Let’s say that a gearbox fails, putting a truck out of action. Typically, this approach results in major disruption.
“At ASE, we are pushing preventative and proactive strategies for maintenance. The preventative approach involves using processes such as oil analysis to detect potential problems at an early stage, and taking action to prevent further damage. The proactive approach, meanwhile, involves ensuring that best practice is followed so that such issues never arise,” he added.
Möller’s argument is not solely theoretical. ASE’s aftersales boss has tangible evidence on his side; evidence that will be of great interest to fleet owners, not only in the Middle East but across the world.
“I’ve been talking to two oil analysis companies, one from the United States and one from South Africa,” he explained.
“Both firms have issued reports on the advantages of preventative maintenance and how much money you can save through this approach. I took a few of their reports and combined some of their findings. I ran my conclusions past them, and they agreed: there is a cost relation between repair after failure, repair before failure, and the proactive approach.
“It is actually quite staggering. If it costs you $100 to repair a failure, it will cost you around $10 to repair before failure, and it will cost you $1 to prevent the problem from happening in the first place,” revealed Möller.
The fact that a distributor is championing a proactive approach to maintenance might come as a surprise to some. On the face of it, one might assume that if manufacturers and channel partners were to allow the status quo to continue, they would maximise their profits.
This type of short-termism, however, has no place in the Middle East’s commercial vehicles sector, according to Walaa A Diab, national manager for Hyundai heavy commercial vehicles in the UAE. In his opinion, a brand’s longevity is never cemented by the making of a quick buck. Instead, the success of brands depends on long-term relationships.
“Manufacturers and distributors build trust upon the quality of the products they supply, but they must maintain this trust through aftersales support,” explained Diab.
“You cannot afford to lose the market because of ineffective aftersales. By keeping customers satisfied over the course of a vehicle’s lifespan, you will encourage them to place an order with you again when the time comes. Repeat business is dependent on aftersales service,” he told PMV.
The notion of aftersales support as the bedrock of repeat business is one that’s common across the Middle East’s commercial vehicles sector. Although relatively new to the market, Indian truck and bus manufacturer Tata Motors has not made the mistake of concentrating exclusively on sales. The firm fully appreciates that a sustainable, regional presence will rely on its ability to keep its customers on the road.
“You make your first sale by showing off the features of the product,” explained Ashish Sharma, Tata Motors’ area manager for aftersales in the UAE and Saudi Arabia.
“We know that we can sell one or more vehicles by offering a good price. However, repeat sales happen primarily because of the support provided for the product. For Tata, aftersales is as important as the product itself.
“This is especially true within the field of commercial vehicles. Automobiles require maintenance in order to operate effectively. If a company has good aftersales support, it will not only retain customers, but also increase sales,” he told PMV.
Whilst Möller certainly shares Sharma’s opinion, he and his colleagues are attempting to go one step further. Möller wants to transform aftersales support to the point where it represents the main driving force behind a fleet owner’s decision to visit an ASE showroom.
“Everybody says that the sales department sells the first truck and aftersales sells the rest,” he explained.
“I want to take things further. Aftersales should sell the first truck. It’s about shifting people’s perceptions. My long-term goal is that Scania trucks should be sold, not despite of the aftersales support offered by ASE, but because – or thanks – to it,” Möller added.
Whether you’re talking about Scania, Hyundai, Tata, or any other brand of commercial vehicles, effective aftersales support must always be built on the foundation of product quality. Moreover, the relationship between channel partners and their principals is a crucial factor in a brand’s regional success.
“As Hyundai’s authorised UAE distributor, it is vital for Juma Al Majid Establishment (JAME) to enjoy a close relationship with the manufacturer,” commented Diab.
“Both parties must work together to create and maintain dedicated teams for spare parts and maintenance. Hyundai is a very competitive brand when it comes to price, but the manufacturer still requires strong partners to carry its success into the future. The customer must trust your team enough to keep selecting your products,” he said.
“This relationship forms the base of the aftersales support that the brand is able to provide,” added Sharma.
“If Tata didn’t enjoy good relationships with its dealers, it could not hope to strengthen the level of support offered to end users. If we were fighting with one another, we would fail our customers. Of course, we sometimes have differing opinions, but every discussion that takes place is customer centric,” he explained.
In terms of future priorities, Möller, Diab, and Sharma have clear visions for their respective aftersales teams. ASE and Scania, for example, will continue to promote preventative and proactive maintenance strategies in the UAE market.
“ASE is able to offer a number of Scania products that both minimise the risk of vehicle failure and help to increase the profits of fleet owners,” said Möller.
“When you leave a truck idling, for instance, two things happen. Firstly, the vehicle consumes fuel unnecessarily; around two litres per hour, give or take. Secondly, the level of engine wear that occurs is doubled compared to that which takes place during normal operations.
“However, drivers need to remain cool – especially during the Middle East’s summer months. As such, we offer a battery-powered cooler that can be fitted to the roof of a cab. This allows drivers to keep themselves cool without leaving engines idling. In fuel savings alone, this product can pay for itself after just eight to nine months of typical usage,” he added.
One of Hyundai’s main priorities, according to Diab, will be to focus on skills development.
“We aim to provide the best possible training across the board, both for our own team and for our customers’ employees,” he told PMV.
“Hyundai and JAME also plan to continue to support customers with our extensive spare parts facilities, workshops, and mobile clinics,” added Diab.
Tata, meanwhile, will continue to busy itself with network expansion. As Sharma told PMV, the manufacturer will continue to support both its distributors and customers with the development and inauguration of additional facilities.
Interviewing Möller, Diab, and Sharma was certainly an interesting experience, but it was also a reassuring one. The region’s commercial vehicles sector is in a healthy spot at present, both in terms of sales and attitude.
Manufacturers and their channel partners are investing significantly in the long-term prosperity of their businesses – and in those of their customers. Aftersales in the Middle East is no longer just an afterthought.