The FINANCIAL — Just four months after the opening of the first Regional Center for Commercial Vehicles in Dubai, Daimler Trucks is driving on with the continued regionalization of its sales and service organization for important emerging markets.
With Daimler Commercial Vehicles Africa (DCV Africa) for East, Central, and West Africa and the Regional Center Southern Africa (RCSA) for Southern Africa, an additional two of a total of six regional centers take up their work this week. In future, the two companies will manage the sales and service for commercial vehicles for all brands in a total of fifty African markets, according to Daimler.
“The opening of two additional regional centers in Africa reflects our consistent efforts for getting closer to our commercial vehicle customers in important growth markets”, says Dr. Wolfgang Bernhard, Daimler AG Board Member responsible for Daimler Trucks & Buses: “Through stronger local presence, we will be tapping the potential of these emerging countries even better.”
“Instead of leaving the African continent to our competitors we will offer tailor made products for the African markets,” Bernhard added.
East, Central, and West Africa: A promising region with a population of 770 million inhabitants
In future, DCV Africa with a head office in the Kenyan capital of Nairobi will be responsible for the entire commercial vehicles portfolio of light and heavy-duty trucks, as well as for mini to large tourist buses. Sales will cover trucks of the Mercedes-Benz and FUSO brands and Mercedes-Benz buses.
The region of East, Central, and West Africa with a total population of 770 million consists of 41 markets, including Kenya, Nigeria, Tanzania, Cameroon and Ghana. It offers great long-term potential for growth: 68% of the population is under the age of 25 – no other region has a higher percentage. After one decade of growth of around 5 percent, experts predict a figure of around 4 percent this year. Rich in natural resources, the region’s dynamic development is further supported by direct foreign investments, which have grown six times the level of the year 2000. In parallel with the growing economy, it can be assumed that the transport sector and thus also the demand for commercial vehicles will develop positively. In 2015, Daimler sold around 5,900 commercial vehicles in the region, 4.000 units out of these came from the Asian brand FUSO.
Southern Africa: Dynamic development expected in the medium term
Market observers see similar dynamics in the region of Southern Africa. The region is comprised by nine countries, among others South Africa, Namibia and Botswana. Despite the currently challenging global economic situation, experts expect a growth rate of 3.75% in 2016. By the end of the decade, experts expect an even more significant rise of the annual growth of more than 4.5% annually. The region is still home to important natural resources such as copper, oil, and gas. Correspondingly great potential is expected for the RCSA. It will be responsible for sales and service from the light-duty FUSO Canter to the heavy-duty Mercedes-Benz Actros. Trucks of the Freightliner and Western Star brands, as well as Mercedes-Benz Vans are also part of the product portfolio. Last year, Daimler sold around 5,500 commercial vehicles in the region, among them 3.000 Mercedes-Benz trucks, 1.600 FUSO vehicles and 700 trucks from Daimler’s US brand Freightliner.
Clear focus on the needs of commercial vehicle customers
With the creation of regional centers, Daimler is placing an even stronger focus on the regional customer requirements of the commercial vehicle business – directly on the spot. Daimler has already been managing its commercial vehicle activities in the region of Middle East & North Africa (MENA) from a local regional sales center since October. Based in Dubai, Daimler Commercial Vehicles Middle East & North Africa FZE (DCV MENA) services 19 countries – from Morocco to Pakistan. The company is responsible for the business with the entire commercial vehicles portfolio in the region – from the Mercedes-Benz Citan city van to the heavy-duty truck Mercedes-Benz Actros.
Previously Daimler has serviced these regions mainly from the Stuttgart headquarters. Through the further regionalization, Daimler Commercial Vehicles will bring the business even closer to the pulse of the market. The long-standing product and services expertise will also pay off, as will the broad product offering of the group’s various commercial vehicle brands.
Market responsibility of Regional Center at a glance
Regional Center East, Central, and West Africa:
Kenya, Tanzania, Rwanda, Burundi, Angola, Gabon, Chad, Nigeria, Eritrea, Benin, Mali, Togo, Ghana, Niger, Uganda, Ethiopia, Sudan, Burkina Faso, Djibouti, E. Guinea, Cameroon, Somalia, Madagascar, Seychelles, Gambia, Senegal, Guinea, Comoros, D.R. Congo, Republic of Congo, Mauretania, Central African Republic, South Sudan, Mauritius, Cape Verde, Ivory Coast, Sierra Leone, Guinea Bissau, Liberia, Western Sahara, and Sao Tome & Principe.
Regional Center Southern Africa:
South Africa, Namibia, Botswana, Zimbabwe, Mozambique, Malawi, Zambia, Lesotho, and Swaziland.
Regional Center Middle East & Northern Africa:
Afghanistan, Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates (UAE) and Yemen.