Abstract

Successful business development and management in the field of truck supplies to the Russian Federation market requires an integrated approach, including strategic planning, adaptation to market changes, and introduction of innovative solutions. Special attention is paid to such aspects as optimization of operational processes, improvement of reliability and durability of equipment, and compliance with environmental and technical standards. The introduction of digital technologies and telematics helps to improve logistics and improve the quality of customer service. A systematic approach to personnel management and dealer network development allows us to achieve high standards of service and meet customer needs. Sustainable business development is possible by taking into account international trends such as globalization and environmental responsibility, which gives competitive advantages in the Russian truck market.

Keywords

Transport Sector, Business Management, Competitive Environment, Innovation, Environmental Standards, Logistics, Competitiveness, Digitalization, Personnel, Dealer Network

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1. Introduction

Companies engaged in the supply of commercial vehicles to the Russian market face numerous challenges and opportunities amidst high competition and dynamically shifting demand. Developing a business in this sector requires not only a deep understanding of the specificities of the Russian transportation market but also the ability to adapt to its conditions, including changes in regulatory policy, economic situations, and customer needs. With the increasing demand for specialized vehicles, truck distributors are compelled to seek new ways to enhance their competitiveness.

The key aspects of successful development for a distribution company include supply chain optimization, the development of service infrastructure, and the establishment of strong relationships with vehicle manufacturers. It is important not only to ensure the availability of sought-after truck models but also to guarantee a high level of after-sales service, including repair and technical support. Furthermore, modern market demands suggest that distributors must offer vehicles tailored to the specific transportation tasks of their clients, whether they are involved in long-haul transportation, construction, or the extractive industry.

This study aims to analyze the main methods for successful business development and management in the commercial vehicle distribution sector in the Russian market, identify the key factors contributing to increased competitiveness, and provide recommendations for strengthening a company’s position amid growing competition and changing market conditions.

2. Business Management Features in the Transport Sector (Theory)

Significant changes have occurred in the market for commercial vehicles and transportation amidst market instability. First and foremost, some companies that were previously focused on transportation have faced economic challenges, prompting them to seek new business opportunities. As a result, many decided to expand their activities and enter the automotive parts market, believing they possessed the necessary skills, business contacts, and financial resources for success in this area (Chernyavskaya, 2020).

In 2023, the Russian commercial vehicle market reached new heights, marking a record since the collapse of the Soviet Union. According to data from the agency “Avtostat” (), 143.6 thousand commercial vehicles weighing over 3.5 tons were sold during this period, representing a 70% increase compared to the previous year. The market growth in 2023 was driven by several factors that emerged from events in previous years. First, the accumulated deferred demand during the pandemic, as transportation companies postponed fleet upgrades, led to an increased need for new vehicles. This was because older vehicles began to require higher maintenance costs, forcing companies to seek replacements. Second, the noticeable recovery in the construction sector, including road and residential construction, contributed to the growing demand for specialized vehicles, such as dump trucks. The increase in infrastructure projects, including in new regions, as well as the continuation of key national programs, played a significant role in boosting demand. For example, projects aimed at developing transport infrastructure, including the construction of international highways, stimulated demand for equipment.

The increased availability of credit in the first three quarters of 2023 also had an impact, encouraging purchases. In addition, the volume of freight turnover in China reached record levels, which further increased the demand for road transport.

Forecasts for 2024 also indicate market stabilization and continued growth. Despite expectations of a decline in demand compared to the previous year, key drivers will remain the influence of changes in credit and financial policy, currency fluctuations, and the ongoing replacement of obsolete vehicle fleets (Trends in the Truck Market in 2024 and Expert Forecasts, 2024). In 2023, this trend continued, and Chinese manufacturers increased their presence, accounting for about 65% of all truck sales in Russia (Figure 1).

Figure 1. Sales of commercial vehicles weighing over 3.5 tons in Russia (thousands of units) (Trucks Set a Record, 2024).

Leading positions are held by Chinese brands, significantly displacing domestic manufacturers. The highest number of sales was recorded for the Sitrak C7H tractor with a sales volume of 23.6 thousand units (Trucks Set a Record, 2024). However, shortly, the market will be supplemented with new promising brands. One of them is Sany, a company that has begun deliveries of the upgraded version of the S490D tractor, which has undergone several significant changes that may contribute to its success in the domestic market. In particular, the wheelbase has been shortened, the exterior of the cab has been modified, and a new heating control system has been introduced. Additionally, the tractor now features an improved design: cast wheels have replaced stamped ones, and hubcaps and fender extensions have been added. It is important to note that Sany is the only Chinese company at the moment equipping its tractors with both an engine brake and a retarder, which also attracts potential buyers’ attention (Truck Market in 2024: There Is Reason for Optimism, 2024).

Communication with commercial vehicle manufacturers, in turn, is a crucial element in forming effective cooperation within the logistics and transportation sectors. Interaction with manufacturers requires a systematic approach, including negotiations, product presentations, and discussions of supply conditions. These aspects are aimed at achieving mutual understanding and satisfying the interests of both parties, contributing to long-term partnerships and sustainable business development. A scientific approach to communication with manufacturers is based on the principles of rationality, transparency, and mutually beneficial cooperation, ensuring the minimization of risks and the optimization of supply processes.

A key aspect of successful communication is negotiations, which serve as a tool for setting the parameters of future collaboration. Scientific literature emphasizes (Antonov, 2021) that to achieve the best results, it is necessary to consider not only economic factors, such as price and delivery conditions, but also the qualitative characteristics of the products, order fulfillment timelines, and the possibility of technical support. Presentations also play an important role in communication, allowing the parties not only to present the products but also to discuss their capabilities in the context of the partner company’s specific activities.

However, with the development of technology, digital communication channels with dealers are proving not only convenient but also highly productive. As a result, dealer loyalty increases, as do their competencies, which contribute to professional growth. The “open book” principle, implemented through such platforms, allows for transparent pricing information, which positively affects the company’s competitiveness.

For digital products, localization becomes one of the key factors for success. Companies need to adapt their offerings to the specific conditions and needs of regional markets (Antonov, 2021).

When discussing the existing characteristics in personnel management for successful distributor business operations, the process of personnel management in organizations involves the application of a system of methods, which can be divided into several main groups (Table 1).

Table 1. Group of personnel management methods (Patrusova, 2021).

Next, the influence of regulatory requirements and safety standards on operational activities and the specifics of compliance with standards in the distribution of commercial vehicles will be considered. These requirements include a set of regulations aimed at ensuring the safety of vehicle operation, environmental protection, and human health. The foundation of these regulations lies in international and national standards that govern the technical characteristics of commercial vehicles, such as harmful emissions, structural strength, and operational safety requirements. For distribution companies, compliance with these requirements is not only a mandatory condition for market entry but also an important factor in competitiveness, as customers are increasingly focused on the environmental friendliness and safety of the equipment they purchase.

One of the key aspects of regulatory requirements is adherence to environmental standards, such as Euro standards for harmful emissions (currently, Euro 5 is in force in Russia). The Euro 5 standard has significantly tightened the requirements for diesel engines, reducing permissible emissions of nitrogen oxide and soot by five times compared to Euro 4 and by ten times relative to Euro 3. These standards directly influence the selection of vehicle models that can be offered for sale. Distributors are obligated not only to ensure that the equipment supplied complies with current environmental standards but also to work with customers, informing them about the possibilities of upgrading or replacing outdated machines. This may require additional resources for organizing training for personnel and providing technical support to customers, which increases operational expenses but simultaneously strengthens customer trust in the company.

An important element of safety standard compliance is the certification of vehicles. Distributors are required to ensure the presence of all necessary certificates and provide them upon request by government authorities or end customers.

Particular attention is given to the adherence to maintenance and repair standards. Commercial vehicles require regular inspections and servicing to maintain safe and efficient operation. Distributor companies must organize their service centers or collaborate with certified partners to provide maintenance services. The maintenance must be carried out according to the manufacturer’s regulations and using original spare parts. Failure to comply with these standards can result not only in reduced safety but also in the loss of warranty on the equipment.

Promoting vehicles that meet environmental standards also necessitates changes in marketing strategy. Modern consumers, especially in developed countries, are increasingly focused on the environmental characteristics of products. This compels distributor companies to emphasize the ecological aspects of the models they offer, implement “green” marketing campaigns, and develop tools to assess the environmental impact of the vehicles. Active use of information technology and digital platforms allows distributors to promote environmentally sustainable solutions, highlighting their advantages not only in terms of performance but also from the perspective of environmental responsibility (Tretyakova, 2023).

Further, this work examines statistical data on the application of digital technologies in this field by international companies. Approximately 91% of organizations utilize digitalization to optimize logistics processes, integrating various technological tools. About 87% of companies focus on models based on digital solutions, recognizing their importance for sustainability and competitiveness (Tezo, 2023). According to a McKinsey study, the implementation of digital logistics solutions can reduce costs by up to 90%, creating opportunities for rational resource allocation and fostering growth in competitive environments.

Focusing on technologies employed by international companies, notable attention is given to text processing technologies actively used for automating tasks related to documentation and data management. Modern solutions allow the extraction of valuable information from large volumes of text, accelerating analysis. This improves data processing accuracy, facilitates operational document management, and supports the seamless functioning of logistics processes.

Cloud-based solutions enable centralized management of all processes, real-time operation tracking, and data integration from various sources into a unified system. Such platforms ensure accessibility, reduce infrastructure demands, and enhance supply chain transparency. Utilizing cloud technologies helps adapt to market changes, speeds up processes, and improves operational control (Prakash, 2024).

Practical Examples of Companies:

Amazon, a leading e-commerce company, has implemented efficient technological solutions that have transformed its logistics structure. One such step includes the use of automated systems to optimize warehouse operations. The deployment of mobile robots in warehouses improved inventory management, accelerated order processing, and reduced delivery times. These technologies have set a benchmark for speed and reliability in logistics.

Maersk, a global leader in maritime shipping, has transformed its supply chain management using blockchain technologies. These solutions provide transparency at every stage of delivery, significantly reducing paperwork and minimizing error risks. A digital ledger tracking and recording supply chain stages enhanced delivery control, lowered costs, and improved service accuracy.

UPS, an international leader in parcel logistics, invests in analytical solutions and technologies to optimize its operations. The use of analytics and automated systems has improved demand forecasting and route optimization. Real-time fleet monitoring through the Internet of Things enhanced vehicle oversight, improved preventive measures, and optimized resource allocation. These measures have increased delivery reliability and improved service quality (Tezo, 2023).

Table 2 provides a comparison of the Russian logistics market with global trends.

Table 2. Analysis of the Russian logistics market with global trends (compiled by the author).

3. Stages of Development for a Commercial Vehicle Distributor

To effectively launch sales and cover a wide customer base, it is essential to supply the most in-demand vehicles. These include tractors with wheel formulas of 4 × 2 and 6 × 4, dump trucks with formulas of 6 × 4 and 8 × 4, as well as off-road vehicles with a 6 × 6 wheel formula. Distributors often enter the market with these models (Figure 2).

In the second stage, it is recommended to focus efforts on importing specialized vehicles for niche segments, such as garbage trucks, timber trucks, and equipment for the mining and oil and gas industries, agriculture, and other sectors. These segments offer the potential for maximum profitability. Consequently, the business model should include a balanced assortment, where mass-market products, which generate lower profit margins, make up the majority, while specialized products, although sold in smaller volumes, have higher margins. The optimal ratio in the distributor’s model portfolio is 70% mass-market products and 30% niche segment products (Kayfejan, 2023).

Key advantages of a distributor may include the following aspects:

- A wide dealer network that ensures coverage of the maximum number of regions.

Figure 2. Registration statistics in the State Traffic Safety Inspectorate (GIBDD) (Russian Transport Statistics, 2024).

- Uniform service standards across the entire network.

- Warranty obligations remain valid regardless of which dealer sold the truck. This can be an issue with Chinese manufacturers, as customers are often advised to contact only the dealer from whom the purchase was made.

- The ability to make warranty decisions directly by the distributor in Russia, without the need to request approval from the factory, significantly reducing the repair waiting time for the customer.

- A reliable system for selecting and ordering spare parts through the dealer network, where the vehicle’s VIN code is correctly tracked, and parts are matched accordingly. Some Chinese manufacturers do not operate this system as effectively.

- Product development and adaptation for the Russian market with the involvement of the company’s engineers, ensuring the supply of vehicles that meet the local market’s needs.

- Direct communication with a private manufacturing plant, simplifying decision-making and minimizing bureaucratic procedures typical of state-owned enterprises.

- The plant’s production capacities meet modern technological standards.

When selecting dealers, the following criteria are advisable:

- Ownership or lease of a service station with at least three truck service bays.

- Qualified service zone personnel.

- A dedicated sales manager working exclusively with the distributor’s brand.

- Absence of competing partners in the region.

- Purchase of a minimum stock of spare parts from the distributor to ensure service coverage.

- Purchase of diagnostic equipment from the distributor, specifically adapted to the brand’s vehicles.

- Purchase of a minimum number of vehicles for demonstration and sales in the region (Sukhareva et al., 2021).

The criteria for personnel selection are an important aspect of the distributor’s success, as human capital determines the effectiveness of all business processes. To achieve optimal results in staff recruitment, several key factors must be considered, which may vary depending on the position, tasks, and company structure.

The first and primary criterion is experience in the relevant industry. Specialists with experience in sales, repair, or maintenance of equipment possess in-depth knowledge of market specifics, product technical characteristics, and the nuances of customer interaction. This allows them to adapt more quickly to the company’s requirements and efficiently perform their duties. Experienced employees are better equipped to understand customer needs, anticipate their requests, and promptly find solutions to arising issues.

The next criterion is professional qualifications and relevant education. For tasks related to equipment maintenance and repair, it is essential to attract specialists with an engineering background or specialized training. This ensures a high level of work quality and minimizes errors associated with insufficient personnel competence.

Additionally, the personal orientation of employees toward professional development plays an important role. Companies should focus on motivating staff to engage in training and skills enhancement, which is especially crucial for employees working with modern equipment and software. Continuous updating of knowledge and skills in the face of rapidly changing technologies guarantees that specialists will meet current market demands (Silin, 2021).

4. Analysis of the Competitive Environment and Its Impact on the Distributor’s Business

In recent years, considering global economic changes and intensified competition in the global market, Russian enterprises faced the challenge of enhancing their competitiveness. Market conditions require organizations to efficiently utilize their resources, which directly impacts their ability to remain relevant amid competition. The competitiveness of a company is a combination of factors that characterize its ability to adapt to market demands and effectively meet customer needs.

The competitiveness of an enterprise, including those in the automotive transport sector, is demonstrated by its ability to provide higher-quality services compared to competitors, which includes cost optimization, improving service quality, and timely delivery. The primary task in developing competitive strategies is to focus on consumer demands and create advantages that will be highly valued by the target audience.

In the commercial vehicle segment, competition is shaped by several key factors, which can be conditionally divided into three groups: technological, regulatory, and consumer. Each of these factors significantly influences market dynamics, determining the strategies of participants and their position in the competitive environment.

Technological factors include the development of innovative solutions that allow manufacturers to improve the characteristics of commercial vehicles. The implementation of new technologies, such as electric and hybrid engines, autonomous driving systems, and telematics, contributes not only to increasing vehicle efficiency but also to reducing operational costs for customers. Companies capable of promptly adopting such innovations gain a significant competitive advantage in the market, especially considering the growing demand for environmentally friendly and energy-efficient solutions.

Regulatory factors also play an important role in shaping the competitive environment. Government and international regulations related to environmental standards, safety, and taxation have a direct impact on commercial vehicle manufacturers. Stricter requirements for harmful emissions or the introduction of tax incentives for manufacturers developing environmentally friendly technologies stimulate industry development in specific directions. Companies unable to timely adapt to changing regulatory conditions may face additional costs or a loss of competitiveness.

Consumer factors reflect the preferences and demands of end users of commercial vehicles. Modern consumers are not only focused on the cost of the equipment but also indicators such as reliability, operational efficiency, and compliance with environmental standards. Furthermore, with the advancement of digital technologies, there is an increasing demand for intelligent vehicle management and monitoring systems that optimize logistics processes and reduce costs. Manufacturers that take these needs into account and offer corresponding solutions strengthen their market positions.

Both qualitative methods, such as SWOT analysis, and quantitative methods, aimed at evaluating indicators such as market share, profitability, and resource efficiency, are used to assess competitiveness (Palnikova, 2016).

Particular attention in the transport industry is given not only to the efficiency of transportation but also to the quality of services provided. This includes ensuring cargo safety, timely delivery, and the level of service offered to customers. Enhancing the competitiveness of transport enterprises requires a comprehensive analysis of market conditions, optimization of operational processes, and the implementation of innovative solutions. An important factor is the introduction of transportation monitoring and management technologies, which help reduce costs and improve control over the transportation process (Yusupova, 2022).

For the successful promotion of a business related to the sale of commercial vehicles, it is crucial to correctly identify the target audience. This will allow for the creation of an effective marketing strategy aimed at specific consumers.

The primary consumers of commercial vehicles may include representatives from various business sectors, such as owners of transportation companies, farming enterprises, logistics operators, and individual entrepreneurs in need of vehicles for cargo transportation.

Consumers planning to purchase commercial vehicles tend to make rational decisions. Their choice is based on a careful analysis of the truck’s technical specifications, reliability, and cost-efficiency. Potential clients usually conduct extensive research before purchasing commercial vehicles. They compare different models, technical data, and prices, as well as analyze reviews from other owners. A key aspect for them is the possibility of long-term use of the vehicle with minimal operating costs (Katsuba & Karavaev, 2023).

Within the framework of marketing strategies, companies focus on the elements described in Table 3.

Table 3. Elements in marketing strategies (Katsuba & Karavaev, 2023).

5. Conclusion

Thus, the successful development of a business in the distribution of commercial vehicles in the Russian market requires a comprehensive approach to product portfolio strategy, service infrastructure, collaboration with manufacturers, and consideration of current market trends. Key factors of competitiveness include:

• Targeted formation of the product portfolio: Offering both high-demand mass-market models and specialized equipment for niche segments ensures balanced profitability and stable demand.

• Enhancing economic efficiency for customers: Reducing fuel costs and maintaining a high coefficient of linear readiness (CLR) directly impact customer satisfaction, driving repeat purchases and expanding the client base.

• Development of the service network and post-sales support: Regular, high-quality maintenance, prompt spare parts supply, and skilled personnel build trust in the distributor and strengthen its market position.

• Adaptation to customer specifics: Providing solutions tailored to specific tasks (long-haul transportation, construction sector, agriculture, etc.) better meets the needs of various industries and reinforces the company’s brand.

The implementation of these recommendations will enable the distributor to improve competitiveness, strengthen relationships with customers and manufacturers, and achieve sustainable growth in the dynamic Russian commercial vehicle market.

Conflicts of Interest

The author declares no conflicts of interest regarding the publication of this paper.

References