- Advertisement -
Monday, November 25, 2024
Home Magazines The TCO dilemma for fleet owners

The TCO dilemma for fleet owners

Several interviews with manufacturers operating in the GCC all seem to yield the same complaint: customers always focus on initial purchase price, rather than total cost of ownership (TCO).

Whether it’s paying for premium vehicles or shelling out for genuine parts, buyers in the region tend to look only at up-front cost. This is in direct contrast to the approach adopted in Europe, where firms usually prioritise long-term savings and less downtime, over the initial purchase price.

To be fair to both sides, it’s natural that manufacturers would use the TCO argument to justify higher prices. And with the tight margins and cut-throat competition that many in the transportation industry operate under, it is no surprise if they’re under pressure to save where they can. This is one of the key challenges faced by Dubai-based Cardan Shaft Network, which manufactures drive shafts in its facility in Silicon Oasis. Hans Georg Brune, managing partner of the firm, discusses this further as we look at how shafts are manufactured here.

It goes without saying that fleet owners and operators are best placed to decide what’s right for their business. But before making a purchase solely based on price, it would be worth doing a comprehensive cost-benefit analysis to find out whether the short-term saving is worth it. By factoring in other costs such as spare parts
replacement, maintenance, fuel and the money lost during downtime, you might be able to make better-informed decisions.

- Advertisement -
Jerusha Sequeirahttp://www.meconstructionnews.com
Jerusha Sequeira is a reporter contributing to Big Project ME and Truck & Fleet ME magazines. She writes news and features on topics across the construction, machinery and commercial vehicles industries in the UAE and wider Middle East and contributes to the digital platform daily. She graduated from the American University of Sharjah in 2014 with a BA in Mass Communication/Journalism. Jerusha has previously interned with the local daily Gulf News, and has worked with on-campus publications at AUS.
- Advertisement -

Most Popular

HEAT Show 2024: Al-Kifah strikes 100 unit ready mix truck deal

XCMG has continued its impressive week at the HEAT Show with a major deal to supply 100 units to Al Kifah, one of the...

PlusX Electric advocates for sustainable charging solutions for EVs

Dubai-based PlusX Electric is advocating for the use of ‘more eco-friendly, non-super-fast chargers for electric vehicles (EV)’, stating that there are substantial environmental benefits...

AJEX Logistics Services set to expand with new facility at Bahrain Cargo Village

AJEX Logistics Services (AJEX), a prominent express distribution and shipping solutions provider in the Middle East, has signed a Letter of Intent (LOI) with...

HEAT Show 2024: Action-packed HEAT Show opens in Dammam

The HEAVY EQUIPMENT AND TRUCK (HEAT) SHOW has officially opened its doors at the Dharan Expo, bringing together key players in the heavy equipment...

Related News

HEAT Show 2024: Al-Kifah strikes 100 unit ready mix truck deal

XCMG has continued its impressive week at the HEAT Show with a major deal to supply 100 units to Al Kifah, one of the...

PlusX Electric advocates for sustainable charging solutions for EVs

Dubai-based PlusX Electric is advocating for the use of ‘more eco-friendly, non-super-fast chargers for electric vehicles (EV)’, stating that there are substantial environmental benefits...

AJEX Logistics Services set to expand with new facility at Bahrain Cargo Village

AJEX Logistics Services (AJEX), a prominent express distribution and shipping solutions provider in the Middle East, has signed a Letter of Intent (LOI) with...

HEAT Show 2024: Action-packed HEAT Show opens in Dammam

The HEAVY EQUIPMENT AND TRUCK (HEAT) SHOW has officially opened its doors at the Dharan Expo, bringing together key players in the heavy equipment...

HEAT Show 2024: Tata Motors launches first AMT Truck in Saudi Arabia: Prima 4440.S

Tata Motors has unveiled its first-ever Automated Manual Transmission (AMT) truck, the Prima 4440.S AMT, in Saudi Arabia. Based on the brand’s flagship Prima platform,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here