RELATED STORIES: Opportunities abound in Iraq, says FIAFI chief | GE secures US $200 million power contracts in Iraq | Will conflict shape Iraq’s architectural identity?
We ventured into Baghdad to meet up with Saib Jassim, the GM of Scania’s Iraq agent, Mada Al Rafidain Auto Trading Company.
Iraq has an ageing vehicle parc with an anticipated demand for replacing existing trucks and buses on the road. How do you forecast the market? Who will the clients be?
“The sectors needing trucks will be the construction sector. But also transportation and distribution. Up in the north the 4×2 truck tractors are in high demand as well as long-haulage semis.
The bus market is very promising. The latest statement by the Iraqi minister of transportation is that the direct need for the ministries will need more than 20,000 trucks and buses in the next five years. I would say that approximately half of that number will be supplied by SCAI.”
Are the trucks assembled in Iraq being sold to other countries in the region?
“No, they are solely for the Iraq market.”
What are the advantages of assembling trucks in Iraq?
“The Iraqi government is moving towards centralising the purchase of trucks and buses for ministries. From the side of SCAI, a 100% owned government company, a major objective is to create job opportunities and developing industry in Iraq.”
What are the main challenges for upholding the brand name in Scania?
“Upholding the brand name is about delivering quality of service and stable operations. Now we need to tell the people that Scania is back again.
We have set up workshops in Baghdad and Erbil that are being launched now. We will also have dealership showrooms on these locations. The next step is for us to now expand from 15 employees to around 50 to establish programs with 24 hour roadside assistance and mobile servicing units. The plan is then to open our next workshop in Basra.”
“The reaction we have so far is very positive. Of course, it is the business in the end that will have to prove this.”
What do you see as the biggest challenge for Scania on the Iraq market?
“It can’t be denied that selling [original and genuine] Scania spare parts is difficult. Our future concept is to sell a repair package where guarantee is given on service and the parts. We plan to launch this in mid-May.”
How are these standards assured?
A division of Scania’s after-sales support continuously carries out vendor operating audits. The purpose of the audits is to find ways to work together in finding ways to do things better. If our customer makes money, we make money.
How do you explain how Scania has such a good reputation on the Iraqi market?
“The Iraqi people love Scania because it is one of the two brands with Mercedes that have been here the longest and been committed to the market.
Scania is the first brand to re-establish vehicle assembly after the war. It will be the first with CKD [complete, knock-down kits] and a body building factory. This will be a big advantage on the market.”
Do you see a future scenario where there is a competition between locally assembled Scania trucks and Scania trucks manufactured in Sweden?
“The government has cenralised the selling of trucks through SCAI. Most new trucks are bought from government organisations and would therefore not become an issue. But also from private contractors, the quality will be the same but the prices will be considerably lower.”
Give us examples of how the technical specs are adapted for the Iraq market?
“In Erbil they will start with semi trailers that are 6×4. They need more engine traction because of the mountainous area 340 to 420 HP motors are in demand.”
Who are the body builders for the vehicles?
“There are a number of suppliers from Jordan and Lebanon, Al Shirawi in Dubai as well as bodies being built by SCAI in Iskandariyah. The truck assembling at SCAI are also planning to expand their building activities to include busses, bus chassis as well as tank, tipper and semi trailer bodies.”
