How is TATA Daewoo’s business in commercial vehicles now?
Business in the region is going well with the launch of new models and expansion of the network.
Our 6×4 tractor models — with 340hp to 420hp Doosan engine options — are hugely successful.
Recently we launched a 480hp Cummins engine variant that is receiving a great response in Abu Dhabi. Its carrying capacity has increased to 100 tonnes gross combined weight and it has automatic ZF transmission — a trend that is catching up in the segment.
We also sell a 6×4 truck chassis popular in tanker applications. Apart from these there is the 4×2 tractor, 6×4 and 8×4 dump trucks and mixers, 4×2 and 6×4 cargo chassis, and 15-tonne GVW MCV.
What led to this new signing of Saudi and Qatar distributors?
We have been present in Saudi since 2001, but in 2008 our former distributor exited the business.
Since Saudi is an important market, we continued to supply Daewoo trucks direct from Korea.
In 2014 we successfully partnered with Trans Arabian Technical Services (TATS) in Dammam, a sister of Saudi Diesel Equipment — also the distributor of Doosan equipment — for the distribution of Tata Daewoo trucks.
In Qatar, we have been present since 2005. After a fallout with the previous distributor, like in Saudi, we supplied Daewoo trucks directly from Korea. Now we have Arabian Agencies, part of the Al Fardan Group, as our distributor.
Al Fardan group is a renowned business group with diversified business interests across hotels, currency exchange and real estate, but in the vehicles sector it’s brands like Land Rover, Jaguar, Ferrari, Maserati, Scania and Volvo Construction Equipment (CE).
What are your expectations or projections for these markets?
We are very confident about these markets, as the growth potential is very high for both Saudi Arabia and Qatar. We expect to attain 10% market share in heavy vehicles in both within the next three years.
Also we would like to increase the segments in which we operate. We are entering the medium truck segment in 2015-16, and then the light trucks segment in 2017.
What are other factors or trend are influencing these markets?
The ever changing competitive scenario is the key challenge for any auto manufacturer. We want to build the best trucks for our customers: trucks that are always more comfortable, more efficient, more powerful and less polluting.
Some of the reasons why we get excellent repeat purchase from customers is the low operating cost of these vehicles over the life cycle of the vehicle. This includes optimally priced spare parts, fair labour rates from our authorised channels and competitive mileage.
We have many customers who have a fleet of Daewoo vehicles and don’t want to change the brand, as they get great value for money in Daewoo trucks.
