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Mercedes selling Brazilian-made trucks to Arabs

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Staff writer ▼ | May 27, 2016
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.
Mercedes Brazil
Auto industry   Good for foreign markets
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 $15 million to $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.