UD Trucks drives into 2025 with optimism as GCC market demand remains strong
With 26% market share growth in 2024
Amid a global economic landscape marked by uncertainty and geopolitical instability, UD Trucks is preparing to navigate the challenges ahead while continuing to meet rising demand in key markets, especially within the Gulf Cooperation Council (GCC) region, said Mourad Hedna, President of UD Trucks (MEENA), while briefing the truck trade media and industry partners in Dubai on January 20, 2025.
UD Trucks, a Japanese manufacturer of heavy-duty trucks renowned for its innovative technology and reliable performance, is commemorating its 90th anniversary this year. Established in 1935, the company delivers durable and fuel-efficient vehicles primarily for the logistics and transportation industries. It is known for its commitment to sustainability and advanced safety features in its products.
On April 1, 2021, Isuzu Motors acquired UD Trucks from the Volvo Group as part of a strategic collaboration.
Reflecting on the broader global economy, Hedna acknowledged the challenges many countries and businesses would face in 2025, with subdued GDP growth projections.
“I think you would agree that 2025 will be a year of engineering for economies across the globe,” Hedna stated, adding, “There will be uncertainty, and some countries may struggle with difficult economic conditions. While the previous years have seen record growth, this year we anticipate some relaxation in demand, particularly for trucks”.
Hedna explained that after a couple of years characterised by exceptionally high demand, 2025 would likely not see the same levels of growth. However, UD Trucks is positioning itself to continue serving its customers with reliable, cost-effective solutions. “The demand for trucks will continue to grow, but it will be different from the explosive figures we saw in the past two years,” he noted.
2025 outlook
Outlining the company’s optimistic yet cautious outlook for 2025, Hedna acknowledged the GCC region’s complex geopolitical landscape in the context of ongoing global tensions, particularly in the Middle East and Asia.
“While we are hopeful with the ceasefire in the Middle East, geopolitical uncertainty remains challenging. However, we continue to see significant demand, particularly in the GCC,” he said, highlighting the GCC region’s ongoing infrastructure projects and economic diversification efforts.
Hedna noted that key markets like Saudi Arabia, the UAE, and Qatar have experienced robust demand for heavy-duty trucks. “The GCC is diversifying its economy beyond oil and gas, with a strong focus on infrastructure and construction. As these mega projects progress, the need for reliable transport solutions continues to grow,” he stressed.
A significant focus of UD Trucks’ strategy for 2025 will be its commitment to customer support and reliable service delivery. The company has emphasised a customer-first approach, offering flexible service contracts and ensuring that trucks remain operational through strong aftersales support.
“Our customers need reliable trucks, and more importantly, they need reliability in service and uptime. They are looking for suppliers who understand their challenges and can deliver a product and an ongoing partnership. This reiteration of our commitment to customer support makes our partners and stakeholders feel valued and prioritised,” Hedna stated.
In pole position
UD Trucks’ strong market presence across various truck segments is a key area of excellence. Having signed on GB Auto as its distributor in Egypt and with its strong performance in Kenya, the company maintained leadership in the medium-duty truck market in the UAE. In Saudi Arabia, significant gains were made in the heavy-duty sector.
Hedna declared: “In 2024, we saw a 26% growth in market share, and in the past four years, we have seen an overall increase of 100% in our market share in the [GCC] region.” This robust growth is attributed to UD Trucks’ commitment to providing high-quality, cost-effective vehicles and excellent customer service.
UD Trucks has also made considerable strides in providing value-added services to its customers. Service contracts for maintenance and support have grown by 34%, with more than 1,000 active contracts across the region.
Telematics connection
Additionally, over 700 UD Trucks vehicles are now connected through telematics, enabling the company to offer real-time support and predictive maintenance services. “It’s not just about selling a truck; it’s about building long-term relationships with our customers, ensuring they have the support they need to maximise uptime and efficiency,” said Hedna.
Regarding environmental sustainability, UD Trucks continues to transition to cleaner technologies. Hedna claimed that the company was among the first to introduce Euro 5 trucks in the GCC region, well ahead of many competitors.
This proactive move aligns with the broader environmental goals of the GCC countries, which are increasingly focused on reducing emissions and adopting sustainable practices across industries. “UD Trucks’ commitment to sustainability reassures our partners and stakeholders of our environmental responsibility,” Hedna pointed out.
Looking ahead to 2025, Hedna expressed confidence in UD Trucks’ ability to capitalise on its strong market position.
“We are starting the year with healthy order books and strong growth across all our key segments. Our teams are prepared to face the challenges of 2025, and we are confident that we will continue to meet the needs of our customers, grow our market share, and support the region’s development,” he concluded.
Hero image: Mourad Hedna, President of UD Trucks (MENA), outlining the company’s 2024 performance and 2025 outlook in a presentation in Dubai on January 20, 2025. Credit: Arnold Pinto
Last Updated on 4 hours by Arnold Pinto
