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Chinese commercial vehicles: Maintaining a fine balance between pricing and quality

KHF Automotive Trading is bringing the best of Chinese brands to the UAE and changing the profile of commercial vehicles plying on the roads

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Higer buses and coaches are fast becoming the preferred choice for travel companies in the UAE. In just a decade since its launch in the emirates, the Chinese bus and coach manufacturer has acquired one-third share of the UAE market, which was traditionally ruled by European brands.

The UAE has an annual demand of 300 to 350 buses and coaches. Of this, KHF Automotive Trading sold 120 Higer buses and coaches last year - gaining a market share of more than 35 per cent. This year, the sales are expected to be higher at 150. The company has also introduced Shacman Trucks to the region.
Primarily, the reason for the growing popularity of Higer is its stringent quality standards at competitive pricing. The engines and gears (automatic and manual) are sourced from the US, while the air-conditioners and other components are from Germany. However, these vehicles compete fiercely on the price front and cost almost one-third of European vehicles in the same category.
Higer follows strict parameters and all its fleet has the national GCC certification, ISO/TS16949 and ISO14001. It has also established stringent regulations on the screening, assessment and verification of suppliers. Its spare parts are sourced from reliable advanced enterprises, both domestic and international.

Shahab Ahmed, Managing Director, KHF Automotive Trading LLC

"We were the first to bring Chinese brands to the UAE, and started with Higer buses and coaches in 2006. Today, most of the transport and tourism companies in the UAE are using a fleet of Higer vehicles," says Shahab Ahmed, Managing Director, KHF Automotive Trading LLC.
Higer has a number of buses and coaches in its portfolio, ranging from 33-seater to 61-seaster coaches. The fleet is being increasingly used by tourism companies such as Emirates Transport, RAK Transport, Al Ghazal Transport in Abu Dhabi, which is a semi-government company, Avis car rental, Europcar and National car rental.
"We customise vehicles as per the needs of the clients too. For instance, we have converted a 33-seater into a 20-seater more comfortable luxury vehicle with 2x1 configuration. We are also working to introduce Highway Travel and Tourism in Dubai, which will have a meeting room and offer more comfort to the users - a first in the region," adds Ahmed.
Shacman Trucks: KHF Automotive Trading has also introduced Shacman trucks in the UAE. These are manufactured in China with technical collaboration with MAN, arguably leaders in this space.
Last year, the company sold 15 of these in the UAE market and this year the plan is to triple the number.
After-sales support
"After-sales service is the backbone of our business. We have been able to maintain a high retention rate for our clients because of the after-sales support, which is available round-the-clock and allows minimum disruption to clients' businesses," informs the managing director.
KHF Automotive Trading also has an exclusive dealership for spare parts of various Chinese brands through United Spare Parts ­- its sister concern that gives it an edge over other players in the field. It has shops in Abu Dhabi and Dubai, and plans to open two more in Sharjah shortly.
The company also appreciates the price-sensitive nature of the commercial vehicle sector in the UAE and offers servicing at competitive rates.
All in all the company strives to offer true value for money - a quality that is being valued immensely by its clients and reflected in its rising market share.
-suneeti@khaleejtimes.com