Interview with George EL Zoghby – Sales and Marketing Director, Hella Middle East

1. Can you tell us a little bit about Hella and its key role in the automotive lighting sector?

HELLA has been driving technological developments in the automotive industry for over 100 years in the field of innovative lighting technology and electronics. As an outcome of its expertise and high levels of capital expenditure in developing its innovative strength, HELLA has established itself as one of the technological leaders in lighting technology as well as in many areas of electronics. Our products provide customers with significant added value when it comes to higher safety, lower energy consumption, better functionality, design and added comfort in applications. We cater to three central market trends of the automotive industry: autonomous driving, efficiency and electrification, connectivity & digitalization and individualization. Based on technological differentiation and innovation, we seek to achieve leading market positions in the relevant business fields and establish HELLA as a core supplier for top automobile manufacturers.

In addition to this, vehicle parts and accessories are sold via one of Europe’s largest distribution networks for the aftermarket. The Special Applications business division rounds off the portfolio with products for specialist vehicles. The HELLA Group is one of the top 40 automotive suppliers worldwide thanks to its global footprint and network and sales of EUR 6.4 billion in fiscal year 2015/2016. Almost 36,000 people, including over 6,000 research and development experts work for the listed family-run company.

2. How many product lines does Hella have? Can you please give us a quick rundown of the products offered in each line?

The HELLA Group’s business activities are divided into three segments: Automotive, Aftermarket and Special Applications. These differ in terms of the respective customer groups as well as their specific market cycles. The Automotive segment includes the business divisions Lighting and Electronics with a customer base that covers almost all leading vehicle manufacturers and automotive suppliers. Our range of services in the Electronics division includes special sensors and actuators, body electronics, and innovative technologies for driver assistance, energy management systems and power steering. In total, we have over 60 product groups in 21 product lines in Electronics, which are pooled in five strategic product segments and help to make vehicles safer, more efficient and more comfortable. For example, our radar sensors ensure a higher level of safety in traffic, as they monitor the rear of the vehicle and assist the driver when changing lane or carrying out a reverse bay parking maneuver. Our Intelligent Battery Sensor is key for efficient energy management in the vehicle, as it monitors the status of the battery and ensures that the car is ready to start at any time. Together with our network partners, we are one of the global market leaders with more than 10 million battery sensors sold annually.

When it comes to lighting products, HELLA develops and produces headlamps, rear lamps, signal lamps and interior lights plus lighting electronics components for nearly all reputable automobile manufacturers throughout the world. HELLA has launched many innovative lighting solutions from the time it was established, starting with the first Acelyte headlamps in 1908. In 2016, HELLA presented a world’s first – the MULTIBEAM LED headlamp, which was developed in collaboration with Daimler. The headlamp features 84 LEDs arranged in three rows, each of which can be controlled individually facilitating an extremely precise, highly-adjustable light distribution in the entire high beam range. This is the first light that emits a low beam which is not reliant on mechanical actuators. The purely electronic dynamic bend lighting is also the first of its kind in the world.

HELLA combines additional business activities in the Aftermarket segment, acting as a retailer for passenger car parts and is an important service partner for independent garages. The company operates as a wholesaler in Northern and Eastern Europe. The Special Applications business segment develops, manufactures and sells lighting and electronic products for special vehicles such as buses, caravans, agricultural and construction machinery.

3. Hella is known worldwide as for its one of the leading automotive suppliers. What are the Hella products that are most popular in the Middle East?

Rotating Beacon:  Beacons are not only required during rescue operations, but also always where a special warning is required to alert users to hazardous situations. This is frequently the case when working with heavy machinery off-road. The first choice of professionals is HELLA beacons and warning systems. Hella Headlamps provide light that is as good as broad daylight. Time and again, we have come up with light innovations that have made driving at night or in bad weather conditions even safer: dynamic curve light, the adaptive front lighting system AFS, cornering light, halogen, Xenon. Our developments simply mean more safety for every driver. That is why, there is a wide range of vehicle-specific and universal headlights, high-beam headlights and fog lights.

4. Are there any products that are not available in this market? Are there any that have been created specifically for this market?

The Product management’s strategy of HELLA KG is to follow market demand and develop items complying with the HELLA quality needed specifically for each region. Therefore, the product management of HELLA Middle East FZE, in corporation with HELLA KG, are in constant development and innovation for our local needs.
This is why you might find some HELLA items in other regions which are not available for sale in the Hella Middle East FZE territory, and vice versa.

5. What is Hella’s long-term strategy in the Middle East when it comes to product innovation and marketing? Is the market here any different from other key regional markets like China, Europe and North America?
   This is a question that cannot be answered briefly. That’s why HELLA Middle East FZE opened its doors in Dubai in 2011. We believe that there is a lot more to do to educate the market and reach the European Level especially when we talk about HELLA Service Parts. Our main goal is to collaborate with our trade partners and service partners to reach the HELLA Global Strategy, which is to enhance the Middle East market with Tools, Service and Parts. HELLA Middle East’s region covers GCC and MENA countries, and each market has a completely different car-parc and specifications when compared to others. Therefore, automatically our region is different than Europe, China and North America.

6. What sets Hella apart from the other companies specializing in automotive lighting technologies?

Communication at light speed. When driving, understanding is often achieved with light signals. Reliable lights by HELLA are indispensable for safety in traffic. Ranging from tail lights and side marker lamps to clearly indicate position, brake lights and indicators for safety in moving traffic through to clearance lights, enabling you to clearly draw attention to the size of your vehicle – at HELLA you will find the optimal solution for every vehicle, shape and function.
If ideal is also a question of technology: a large range of bulbs and LEDs are, of course, to be found in our online catalogues ranging from LEDs through to the last rear light.

7. The automotive market has in general been experiencing a slowdown in recent years, particularly in the Middle East. What is your take on this at the global and regional levels? What strategies have you developed to overcome this challenge?

The HELLA portfolio contains a diverse range of products for a wide business segment.
Fortunately, with the high vision of UAE rulers, a lot of projects are either in the pipeline or under construction.
Our main business is focused on commercial sector which is still growing in the GCC.
In addition, there is a big potential in the GCC market and a lot of opportunities in various segments. Therefore, HELLA Middle East FZE has recruited talented and competent Product Managers, supported by an experienced sales team with whom together we are able to expand the product range and find new opportunities.

When there is a slowdown, small companies are unable to survive the tough situation and are forced out of the market. Well-known OE manufacturers like HELLA, with long-term vision, have the innate strength to overcome such situations.

8. Technology has been growing at a rapid pace in the automotive industry whether it has been the growing popularity of hybrid and electric vehicles or the Internet of Things. There is growing emphasis on road safety with stricter rules being imposed from July 1^st. What impact will these trends have on automotive lighting?

HELLA’s aim is to develop with the responsible departments of road and safety in Europe, produce high quality products to enhance road safety on the road. We are glad that new road regulations and awareness are implemented in this region.
Therefore, we expect tougher investigation and crack down on copy and fake products which are playing with people’s lives.

9. What events and tradeshows will you be participating in 2017? Do you have any long-term marketing partnerships in the MENA market?

Marketing activities, campaigns as well as shows and exhibitions, are the main core of every company to communicate with the end users. HELLA works with its partners in the region to reach out to endusers through Frankfurt Automechanika, local exhibitions and newsletters.

10. What is your distribution model in the region?
    From day one, HELLA Middle East FZE has segregated the market into different segments where we have chosen reliable and credible customers who can sail with HELLA on the same boat, reaching end users by pull and push effect.
11. How has the GCC market evolved over the years?
    The main business in the GCC is related to Commercial Vehicles.
    Along with the splendid rulers’ vision for this region and the new projects launched, especially Expo 2020 and with a lot of expanding cities, the market is improving and growing on a large-scale year after year. European Light vehicles in the GCC is considered a very important part in the Automotive industry, especially in the Independent After Market.
12. If there is one thing you would like to convey to readers of Tires & Parts, what would that be?

Please avoid cutting costs on your safety. Look always for original parts, from reliable partners in your countries.
Your life is important to us. Therefore, we keep developing our products for your safety.