News

Mercedes now selling Brazilian-made trucks to Arabs

25 de maio de 2016

The German automaker has chosen Brazil to supply medium-sized trucks to Arab countries as part of its global strategy. Sales to the region began in late 2015 and are expected to amount to at least 1,000 units a year.

São Paulo – Since late last year, nearly 200 medium-sized Mercedes-Benz trucks were shipped to the United Arab Emirates, Jordan, Saudi Arabia, Qatar, Oman, Egypt and Lebanon. Sales began after the Mercedes-Benz’ parent company Daimler AG, from Germany, decided that Brazil would be the new supplier of medium trucks to Arab countries.

“We are talking about trucks weighing 9 to 17 tons intended for general transportation or municipal services, as garbage trucks, dump trucks or cold storage trucks,” explains Mercedes-Benz Brazil’s senior manager for Exports Fábio de Mesquita Souza.

The truck models being shipped to Arab countries are Accelo 915, Atego 1418 and Atego 1725. According to Souza, the company expects to gross USD 15 million to USD 20 million this year with these sales.

According to the executive, the decision to make Brazil the supplier of trucks to the Arab world was made because Daimler believes vehicles made in the country are best suited to the Middle East.

“These trucks are more robust than those made in Europe. They were built for roads with less infrastructure,” Souza says. “Moreover, Brazilian-built trucks abide by the same CO2 emissions standards as those of Arab countries,” he remarks.

Souza explains that Daimler has an office in Dubai and representatives in each of the Arab countries it ships product to. Each representative owns one or more local dealership.

“The idea is for dealers to have the smallest inventory [of trucks] possible to meet the demand,” Souza points out. For the time being, sales are being made on the basis of orders. The biggest order shipped to the region comprised 40 units for a dealership in Egypt to resell to the government.

Souza is optimistic about future deals in Arab countries. “We believe we can sell at least 1,000 units per year, but the market is much larger than that. There are many more opportunities available,” he ponders.

Besides the countries Mercedes-Benz Brazil already sells to, the Brazilian unit will serve Iran, Bahrain, Kuwait and Iraq. “We are considering supplying trucks to Algeria too, as part of a separate project,” the manager reveals. According to him, the most promising Arab markets are Egypt, Algeria and Saudi Arabia.

Replacement parts will also be shipped from Brazil. “Dealerships rely on full aftersales support from Mercedes. We advise them on keeping a minimum stock of parts,” he asserts.

Currently, Argentina is the top export destination for Mercedes-Benz Brazil’s trucks. The German carmaker’s Brazilian arm also supplies other countries in Latin America, as well as some in Africa.

*Translated by Gabriel Pomerancblum