.

1. What were the main factors that drove the dramatic perception shift of Chinese trucks from being seen as unreliable to becoming a dominant force in markets like KSA?

The dramatic shift in the perception of Chinese trucks from being seen as unreliable to becoming a dominant force in markets like Saudi Arabia (KSA) can be attributed to a combination of internal quality improvements of the Chinese OEMs, offering customized trucks and equipment to meet the local specs requirements, and offering reliable trucks and equipment at lower costs of ownership. Besides the quality improvement of the product, changing external market dynamics like COVID-19 and its impact on the supply chain have affected the European OEMs. The delivery time for some OEMs was extended to about 14 months, which makes it impossible for the distributors to meet the demand of their markets, especially in fast-developing markets like KSA, where the launched projects required thousands of construction trucks. The fast delivery time of the Chinese trucks OEMs led to a decision against shifting more economic and feasible for the customers who are looking to complete the projects in hand, instead of focusing on the TCO. 

2. In 2018, you signed with a Chinese OEM despite the owner’s disagreement. What gave you the conviction to go ahead with that decision, and how did you assess the long-term reliability potential at that time?

I had almost 20 years of automotive experience, mainly in commercial vehicles, and had personal experience with the Chinese OEMs before the 2008 financial crisis. They introduced their trucks in Yemen, and there had been increasing demand for the products due to their affordable prices. However, the OEMs weren't paying attention to after-sales, and the quality of the products wasn't that good. A few years later, they started pushing their products, offering their support, and searching for long-term business partnerships. In this part, they have been very smart. They tried to avoid the well-established distributions that have the belief in the superiority of the European brands and didn't claim to compete with European brands. Rather than that, they offered demo units and focused on small companies that have experience and a database in the truck industry. This attitude wasn't noticed by European brands, who were still obsessed with the value their brands offer to the customers. I have been involved in the sales of trucks for 20 years, and from the market analysis in some countries, it was clear that the Chinese trucks will experience higher demand due to their affordable prices and improved quality, mainly when the European brands aren't able to stop the prices from increasing dramatically. 

3. Selling 14,000 trucks in KSA is a milestone. What specific strategies enabled Chinese OEMs to penetrate and scale so rapidly in such a competitive and brand-loyal market?

Again, it’s the combination of different factors and the main 3 are the accepted improved quality of the trucks driven by partnership with European OEMs that enabled the Chinese OEMs to offer less version of the European truck at an affordable price, the second factor is the strategy of the Chinese OEMs who went to the customers directly, collecting the data, improving the product specs and offering almost the same Engine and transmission of the European brands. The third factor is the focus on after-sales, where the Chinese OEMs benefited from their experiences in the export market and offered trusted products combined with strong after-sales support.

4. What technological, manufacturing, or design changes have Chinese truck OEMs made over the years that significantly enhanced their reliability?

The main change was the shift of the OEMs' strategic offering for the product from offering low-cost trucks and spare parts to offering trucks manufactured with European technology, as mentioned above. By viewing all the main trucks of Chinese OEMs, we conclude that they have been in partnership with almost all known brands. This enabled them to benefit from the quality advancement and get access to the same supply chain and original parts manufacturers. Again, the main components of the truck are the engine and transmission, axles, and brakes, and almost all the main Chinese OEMs are using either the same technology as the European brands or outsourcing these components from the original manufacturer. Chinese truck manufacturers have entered strategic partnerships and collaborations with well-established global manufacturers of the main components used by the European OEMs, which decreases the gap in terms of product quality. Another factor is the enhancement of the truck's safety and the improvement in this aspect. 

5. How do Chinese trucks today compare with established Japanese, European, and American truck brands in terms of performance, durability, and after-sales service?

No doubt, the European, Japanese, and American truck brands have the advantages of long experience and reliability gained from their historical success in this industry. Nevertheless, the Japanese have always been the leaders in the LDT and MDT, while their HDT comes after the European brands, which couldn't compete with the Japanese, mainly in the LDT, and this is attributed to different factors, one of which is the emission standardization. European HDTs are more economic and efficient compared to the Japanese brands; however, the Chinese strategy mainly depends on the huge number of OEMs in the truck industry compared with the few OEMs in Europe, Japan, and the USA. 

Day by day, the Chinese trucks are improving in terms of quality, fuel efficiency, and durability; still, they are experiencing a weakness in the after-sales, mainly the availability of spare parts. 

The Chinese trucks also suffer from the very low resale value compared to European brands, but the initial ownership costs make them the best alternative for small and medium firms with lower budgets and short-term contracts.  

6. Resale value was once a major weakness. How has this metric evolved, and what initiatives have Chinese OEMs undertaken to strengthen residual values?

I think there is no initiative undertaken by the Chinese OEMs to overcome the challenge of the very low resale value of the truck. Rather than that, they are pushing more sales and offering different models in the same market, which confuses the customers, after-sales, and sales.

In countries like KSA, there are important questions, such as "What is the actual market size? And how long will the new construction projects last?” If we can define the real market of the trucks, we shall expect a dramatic decrease in sales numbers soon, even worse than that of 2008 and 2015. The reason beyond that is the domino effect on the contracting companies involved in construction projects, where many buy trucks on credit with expectations of high returns. This is okay for the time being, but what happens after completing these main projects? Other questions evolve "Where will these trucks be operated?", "At what costs shall we sell them? And "Will the contracts of goods transportation remain the same or face a decline?”

7. What feedback are you hearing from fleet operators and logistics companies who have shifted from traditional OEMs to Chinese trucks?

They are satisfied with the performance of the Chinese trucks to a certain level, but there is still a gap between the European OEMs and the Chinese ones. This is the logic as they have a few years of experience with the Chinese trucks compared to decades of experience with European, Japanese, and USA trucks. 

Definitely, the future will be for the Chinese OEMs, providing they enter into partnerships with local distributors who have the financial and HR capability to support the brand in the long term, rather than focusing on sales numbers. 

8. How important has the localization of spare parts, service networks, and supply chains been in establishing trust and reliability in emerging markets?

This depends on each country and can't be applied to all countries. I'd better classify markets based on the purchasing power and how strong the country's economy is. In emerging markets, there are many challenges, the main one being the security issue, which is the cornerstone of development. The other challenge is the number of competitors in the market, where some have well-established experience, while others enter the market with no experience, which increases the uncertainty and instability of the automotive market. Where localization of spare parts and service networks can be done in all countries, localization of the supply chain can be done in countries like KSA. 

In the emerging markets, the transportation companies and fleet owners will evaluate the after-sales offering of the distributor and their reputation rather than the brand itself. This is common in markets with a low economy, too.

9. From your experience, how have Chinese OEMs adapted their business culture and customer engagement models to suit Middle Eastern market expectations?

They have their own people in the market, visiting showrooms, transporting companies, contractors, listening, taking notes, and working with the R&D to make the necessary improvements on the product quality and ensure specs are customized to meet each territory's operations. 

10. Beyond reliability, how are Chinese truck OEMs innovating around sustainability, fuel efficiency, and future-ready technologies like EVs and hydrogen-powered trucks?

Even though the European, the USA, and Japanese started the investment earlier in the future technology, the Chinese OEMs' market share is growing rapidly. A simple example is BYD in the EV market share as the world's biggest OEM. In trucks, companies like SANY are improving fast in their offering of electric trucks. 

Again, the many numbers of Chinese electric trucks OEMs make it clear that most of them will disappear in the coming years, while a few will lead the industry. 

11. How have government regulations, incentives, or trade policies in markets like KSA influenced the acceptance and expansion of Chinese trucks?

This is an additional factory and is very significant in increasing the reliability of Chinese trucks as the Chinese entered into agreements with countries like KSA, which facilitate the import and legislation of the trucks and cars. In line with the vision of 2030, many projects were launched mainly in infrastructure development, which encourages foreign companies' investment, to meet the country's rapid economic and industrial expansion. 

12. How have established global OEMs reacted to the surge of Chinese trucks, and do you foresee aggressive competition or strategic collaborations ahead?

Personally, it depends on the application of the trucks and the intended operations; the TCO shall be calculated to decide if the project requires a European or Chinese truck. Definitely, the Chinese OEMs have controlled the truck market in the last few years, and their market share has increased gradually; European brands are unable to maintain their market share. They are focusing on the loyalty of their customers and the value delivered, and again, the TCO to maintain their shrinking market share. 

13. When introducing Chinese trucks to skeptical customers, what strategies proved most effective in overcoming trust barriers and building credibility?

Following the traditional way of offering him the trial experience, where he can operate the truck and test it in different terrains. Then, we move with the customer to the technical specs and the main components of the trucks to assure him of the reliability of the truck. The last stage is overcoming his worries by discussing the offered and extended warranty and the after-sales offering. 

14. Where do you see Chinese trucks positioned globally in the next 5–10 years? Will they merely be strong contenders in emerging markets, or do you see them rivalling traditional OEMs worldwide?

No doubt, the world is changing rapidly, and if there is no embargo on the import of Chinese trucks, they will supersede the traditional brands. As an example of that, there has been an embargo on one of the leading Chinese OEMs in East Africa recently due to the failure of the truck to meet the safety standards. The other reason for not giving a clear answer to this question is that we are expecting the traditional OEMs to come out with a counter-strategy to defend their positioning and maintain their market share.