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How Renault Trucks is covering all bases in the region

Renault Trucks talk to T&FME at Bahrain’s BIC about how it is staying on track in the region

The recent Bahrain F1 Grand Prix may have been disappointing for the Renault team led by driver Daniel Ricciardo, but only a few days later the track was rumbling with the hum of Renault Trucks – a company that may share the name but is striving for its own success in the region.

Almost 500 members of the truck industry descended to the famous circuit in April and were treated to a test drive experience of the latest models in Renault Trucks’ long-haul range, including the T series as well as the construction ranges, with the mighty K and C series.

As T&FME has learned over recent years, the company is not just fixated on its vehicles in the region; and is realising that it needs to offer transport solutions and fleet-friendly help to businesses in the region and the event was a chance to catch up on its progress in safety, fuel efficiency, after sales and vehicle financing. It has also taken the initiative in the used market with the introduction of Renault Used Services; opening up the brand to a wider net of fleet operators in the region looking for a value option.

The signs are that its strategy for the region is working. In French-speaking Africa, Renault Trucks holds 20% of the premium range market (up by +1 point in 2018). It also recorded a ‘good performance’ in Turkey (plus 2.1 points with 5.8% of market share).

The French manufacturer further saw sales in Africa increase by 25% in 2018 as it ended the year with a total volume of 54,868 vehicles invoiced, up 10% on the previous year. Although it felt double digit increases in Europe and France, deliveries of Renault Trucks vehicles fell 8.8% internationally, with 4,457 trucks invoiced. A downturn explained by the introduction of import quotas in Algeria in 2018. However, sales in the Middle East increased by +1.1 points helping the company gain a 6.4% market share.

Grégoire Blaise, president for Greater Middle East (GME), says that the most important figure – in a market that has proven to be difficult for most manufacturers – is that increase in market share.

“You can strike a big deal at a crazy price and you get your market share. But this is not what we’re looking for,” he affirms.

Since first sitting down with T&FME two years ago, it has been clear that Blaise has bought his passion for the brand and nous of taking on the competitors he developed in Asia to the Middle East. He remains determined to build an operation founded on a team that shares his ambition and determination to make Renault Trucks a reliable partner for its customers in the region. He uses the example of its Zahid Tractor joint-venture assembly operation, Arabian Vehicles & Trucks Industry Co Ltd (AVI), in Saudi Arabia’s King Abdullah Economic City as a demonstration of what the brand needs to build market share.

“We decided to ask partners to jointly select people for their potential and their eagerness not for their CV – whether or not they had spent two years at MAN, Astra, etc. For Renault, we want to inject these people with the mindset of the brand. We are thinking long-term.”

Talking to Blaise and his colleagues Olivier De Saint Meleuc, SVP, Renault Trucks International and Alex Vosselmanm, VP, Used Trucks, Renault Trucks International it was clear that Saudi Arabia, for all of its recent troubles, remains a core market for the truck industry. While the Xperience Days event is intended to for an international audience, the choice of Bahrain was a useful location to ensure their attendance.

“We’ve had 60 Saudi customers at the event,” explains De Saint Meleuc. “Those who came were very keen on participating in the workshop, testing the vehicles and so the appetite for the brand is there. Most of them were very surprised by the efficiency of the trucks and the spirit of the brand as well – I think it’s important, as we are talking about simple vehicles and also about being professional which matters in this family a lot. And when discussing with them, they were also positive about the economy growing again this year. It’s still tough but they are seeing very positive signs. At Renault Trucks International-level, we consider Saudi as one of the key strategic markets. For today, but even more for tomorrow because the potential is there.”

Ever since a Berliet (the historical name for the brand) truck proved heavy vehicles could be Sahara-proof and endure – and even thrive – in the desert, Renault has used the Middle East and Africa region as a vital testing ground. The company continues to use feedback from out in the field in the region to develop its trucks, and it was unsurprising that the latest Xperience Days event was used by Renault to not only educate but also learn where the brand stands in the hearts and minds of the truck industry. Indeed, for many, the first job at the event was to participate in the simple task of logging online to pick three words that describe the Renault Trucks brand. A word cloud formed on a a screen set-up on the stage with the largest being ‘robust’, ‘efficient’ and ‘quality’.

“It was pretty good to see this alignment in the perception of our customers and what we aim for,” comments De Saint Meleuc. “It was surprisingly – and extremely – accurate with the brand values that we are trying to roll-out in each country, such as robustness, efficiency, and so on. But we are not just about doing some marketing as you cannot convey the message of robustness, if your product isn’t. For me, it is about the company being consistent from the product, the service, the people to the message. And it’s what I feel when I see these answers.”

De Saint Meleuc argues the success of the brand comes from a compelling combination of being a producer of – to borrow one of the phrases on the word cloud – reliable trucks supported by the benefits of being part of the wider technological and network expertise of the Volvo Group as well as operating in its own right to be close to its customers.

“It’s on the field where we find a solution and think together on how to improve the efficiencies,” he adds. “We have been an extremely successful brand over the last four years and that it is because we decided on a strategy for the brand that is now paying off: having fantastic products; being excellent on the basics; parts availability, etc; to ensure that the vehicles continue to run daily. We have increased our sales between 2017 and 2018 by 10% because people will buy our trucks as they get reliable after sales.”

The company is hoping that the Pakistan market, where it is building market share from a standing start, is an example of how this strategy can pay off, particularly when it has the right partner in place. Blaise told T&FME last year that he felt the investment in infrastructure could help open up opportunities for Renault Trucks in the market and it formally launched, in partnership with importer Ghandhara Nissan Limited (GNL), late in 2018. The two companies believe they can compete with the established Asian and Chinese brands that dominate.

“It is a bit early to call it a ‘success’, but I hope in the next two or three years that we can start to claim that we are. Where we have been successful (so far) is that I’m sure we have selected the right partner and the right processes. They have put their full name behind us,” explains Blaise. He adds that he feels that fleet owners in Pakistan are beginning to understand that, in terms of total cost of ownership (TCO), Renault Trucks can be price-competitive even versus trucks that are 50% cheaper. It’s a message delivered by GNL, but Blaise says they are working together to prove how much difference fuel efficiency can make to a market where diesel is relatively expensive. “Again, this is about consistency (in our messaging).”

Read the full interview with Renault Trucks in the May issue of Truck & Fleet Middle East.

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Stephen Whitehttps://truckandfleetme.com/
Stephen White was formerly editor of Big Project ME.
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