Setting sail and expanding into the Middle East has become a new frontier for Chinese commercial vehicle and machinery manufacturers seeking growth. However, this journey—full of both challenges and opportunities—comes with a unique set of complexities. How can Chinese brands effectively tell their stories in a region that is as much defined by its fiery ambition as its rich heritage?

In this episode, we have invited Jack.Wang, an overseas observer from E&C, to share his observations and thoughts on Chinese commercial vehicle brands going global to the Middle East.Not long ago, Jack.Wang led his team on a remarkable journey to the Middle East. They visited cities such as Riyadh, Dammam, Dubai and Abu Dhabi, delved deep into the local commercial vehicle and machinery manufacturing markets, and had face-to-face exchanges with overseas distributors and spare parts manufacturers on topics including market demand and customer preferences. Through on-the-ground investigations, they gained a more authentic, nuanced, and multi-faceted understanding of the Middle East.

In Jack.Wang's opinion, the inclusiveness, diversity, stable political ecology and sound economic foundation of the Middle East are all calling on more Chinese enterprises to deepen their development in this hot land. However, if Chinese enterprises want to enhance their competitiveness in the local market, they need to promote the evolution of business models, transforming from simple trade forms to the overseas expansion of the entire industrial chain. This means that they should not only provide high-quality products, but also actively integrate into the local market, promote the construction of localization, and truly move forward side by side with Middle Eastern users.

In the field of light-duty trucks, Isuzu from Japan, as a representative, has been deeply rooted in the Middle East market for many years. It features high quality and a higher degree of lean production, and its price is highly consistent with its quality. In contrast, there is a significant gap for Chinese brands. Therefore, local light-duty truck users still have a preference for Japanese light-duty trucks, especially emphasizing brand and quality.

In comparison, among heavy-duty truck users, although the European truck brands still dominate the market at present. Representative brands such as Mercedes-Benz, Scania, and Volvo all hold important positions. However, in recent years, the export volume of Chinese heavy-duty trucks to the Middle East has increased, and their influence has gradually expanded. Chinese heavy-duty trucks have shown stronger competitiveness in terms of cost performance and have also become the choice of many local users. At present, their market share has exceeded 60%, and it will further expand in the future.

A: Generally speaking, the pattern of the Middle Eastern commercial vehicle market includes brands dominated by European and Japanese manufacturers, as well as Indian brands represented by Tata. At present, in terms of product quality and brand influence, Chinese commercial vehicle brands still have a certain gap compared with European and Japanese brands. However, they are far superior to the local influence of Tata. Therefore, Chinese commercial vehicle brands are at a middle level of perception.

In addition, it is worth mentioning that after-sales service is a very important aspect for Chinese brands in order to enhance perception and attract purchases. However, in the Middle Eastern market, it is not a decisive factor in purchasing. Users in the Middle East have established a relatively mature and complete network of service stations. Therefore, for newly entered brands, simply building a service station is not enough to attract their purchases. They attach more importance to factors such as the cost performance and quality of products. In particular, word-of-mouth communication is an important factor in strengthening the perception of local users and increasing their willingness to buy.

Q: Compared with competitors such as other local and international brands, what is the greatest advantage of Chinese commercial vehicles in the Middle East market? And in which aspects are there still some shortcomings?

A: At present, the Middle East has a weak industrial base and no local brands. It mainly relies on the import of complete vehicles, which provides a favorable market environment for the development of Chinese commercial vehicles in the region. Compared with international brands, Chinese commercial vehicles also have significant advantages between new European trucks and used European trucks. In particular, they stand out in terms of cost performance, reliability, and maintenance costs, and are gradually replacing the used European truck market.

However, the shortcomings are also quite obvious. On the one hand, in terms of products, there is still much room for improvement in aspects such as the total cost of ownership TCO（Total Cost of Ownership）and intelligence of vehicles when compared with international brands. On the other hand, international brands have established a systematic and localized production system by building KD（Knockdown）factories and establishing local partnerships. At present, we mainly enter the Middle East market through trade. In the eyes of local users, we are more of a trader rather than a brand with a solid industrial foundation and market roots.

On the one hand, these enterprises have improved their overseas layouts through capitalized operations. Moreover, the acquired enterprises, such as Putzmeister in Germany, which is known as the German Elephant, and CIFA in Italy, are all first-class machinery manufacturers in the world. Through overseas mergers and acquisitions, these enterprises have rapidly expanded their global influence.On the other hand, they attach great importance to localization. A series of measures such as building local factories and arranging the industrial chain are all positive and effective ways to promote localization. For enterprises that are still going global through trade, if they want to transform and upgrade from a single trade model to a model combining trade and direct sales, and further to an industrialized approach to going global, the proactive exploration and practice of these enterprises in localization are worthy of reference and learning.

Looking ahead, Chinese commercial vehicle brands must rethink their role in overseas markets — shifting from “backpackers,” who pursue short-term gains and quick exits, to “rooted builders,” who grow with and contribute to the local ecosystem.In the Middle East, local users are not just looking for products — they are seeking long-term partners who understand their needs and share their vision. This goes beyond simple localization. It’s about building trust, adapting to local regulations, respecting culture, and most importantly, moving beyond transactional trade to establish a fully integrated value chain.Only by becoming what we call “rooted builders ” — deeply rooted, trusted, and collaborative — can Chinese brands truly tell their stories in the Middle East, walk alongside local users, and build a path toward sustainable global growth.