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Annual truck sales in GCC to reach AED 10 billion

It is reported that the value of annual truck sales in the GCC and the Middle East is expected to increase to a massive AED 10 billion in the next 12 months spurred by heavy demand from the booming construction industry.

As per report, demand for trucks in the region’s construction industry has almost tripled in the past 2 years, led by the massive projects. In a couple of years, the industry expects sales to grow to almost 20,000 trucks per annum.

Mr Anders Schultz area manager of Scania AB for Gulf said that “Sales figures in the 1980s and 1990s were really low. But during the past two years, sales have almost doubled. We expect sales to rise to 1,200 in 2008. Despite the slowdown in the American and European economies, the Middle East has remained vibrant and sales look promising.”

To counter the problem, Scania recently announced that once its new production facility at Jebel Ali starts functioning it would begin training programs for aspiring drivers. It has decided to tap into this newly emerged market and start production within the UAE as part of its strategy to strengthen its position in important growth markets.

Mr Schultz said that there is a severe shortage of trucks in the region, especially in Dubai. He added that “The new facility will start its operations in early 2009. It will initially encompass vehicles for construction haulage, such as tipper and concrete trucks, but the facility will also be adapted for future bus chassis delivery.”