New axle loading rules expected soon

New and stricter axle loading rules are expected to be passed within the next couple of months, and would have an immediate impact on heavy commercial vehicle sales in the UAE, according to a senior industry source.

"There are a lot of potential buyers who are now sitting on the fence awaiting the laws to be passed. We expect a huge demand to come through as soon as the new regulations come into effect, which should be within the next few weeks," said Kamal Husain, marketing manager at Al Futtaim Auto and Machinery Co., the local Volvo truck distributor.

"The authorities are bringing in the changes in a phased manner in consultation with all the concerned players."

Tighter loading rules have been a constant demand from truck dealerships in the UAE, which would bring it in line with similar laws existing in Europe and the North Americas.

What has been the case so far here and elsewhere in the Gulf is that transportation companies have tended to over load their vehicles, causing much damage to the roads and to the environment. There is also the issue of the physical danger that these overloaded vehicles present.

Meanwhile, the first quarter of 2002 recorded a 15 per cent growth in new heavy commercial vehicle sales. Most of the demand was coming from the private sector.

Dubai and the northern emirates provided the bulk of the sales, while there were a few pockets of demand coming from Abu Dhabi.

"The new orders are mostly from the private sector so far this year. There has not been that many from the government side," said Husain.

The UAE accounted for about 950 odd units last year, with re-exports making up about 150. The total also includes those made for the defence forces.

Volvo has an estimated 18 per cent market share and second place behind DaimlerChrysler. The company has just launched the latest versions of its FH series, with prices starting at Dh275,000.

On the buses side, Husain expects new tenders to come through shortly from the tourism sector. The UAE accounts for about 200 of these coaches.