JCB Upbeat about 2010; Eyes Bigger Market Share in ME

JCB is also eyeing to raise its profile in new markets in the region, particularly in Libya, Iran, Sudan and Iraq.

“Despite the downturn, we have performed exceptionally well this year. Our sales volume is down by about 45 per cent from 2008, but our overrall market share in the Middle East rose to 16 per cent from 18 per cent. For 2010, we will bring that up to 20 per cent,” Dan Thompstone, JCB Middle East regional manager, told Khaleej Times.

“We are expecting to sell more units in 2010. The countries in the Gulf Cooperation Council may be down, but there are a lot of opportunities in other countries in the Middle East.”

Thompstone said that for this year, JCB reacted very quickly to the recession, and focused on new markets to offset the dip in some of its traditional big markets such as Dubai. “Our biggest market this year is Saudi Arabia in terms fo sales volume, in 2008 the UAE which accounted for 25 per cent of our sales in the region, was a big market for us, but things are very quiet in Dubai, while activity is perking up in Abu Dhabi.” JCB, according to Thompstone, managed to increase its market share this year in the UAE to 20 per cent from 15 per cent a year earlier.

“The key thing for JCB is amid the recession, our market share rose, we have sorted out our inventory. We did that by training our dealers and focusing on developing new markets.”

For 2010, JCB and its sole distributor in the UAE, Galadari Trucks and Heavy Equipment, will embark on a more aggressive campaign to pitch its heavy line products — excavators, shovels and compaction machinery. Thompstone said JCB is projecting its market share of these products to double to 10 per cent in 2010.

“We already have very high market shares for the backhoe loaders and telescopic handlers. What we are offering to our customers now are complete and reliable solutions.”

While it expects its biggest sales in 2010 to come from Saudi Arabia, Qatar and Abu Dhabi, JCB is also seeing some upside from Dubai.“Dubai has gone through the worst, 2010 will continue to be largely static although we’ve seen some projects being mobilised now. So, we anticipate more demand next year.”

rocel@khaleejtimes.com