bajaj auto ltd in chile in uruguay

7/27/2019 Bajaj Auto Ltd in Chile in Uruguay

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BAJAJ AUTO LTD

IN

CHILE & URUGUAYPresented By (Group 3, Sec A)

Neha Mehta

Nitin Sharma

Nitin Baranwal

Prinsu Jain

Rajesh SIngh


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Social & Economical

environment for Bajaj Auto inChile & Uruguay


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CHILE

Demographics

Population

16,888,760

urban population: 89% of total population (2010)rate of urbanization: 1.1% annual rate of change.


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Age and sex distribution for the year 2010:


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The richest 10% have nearly 45.6% income at their disposal.

Population consists mainly of middle class that are in the agegroup of 20 to 65 with income at their hands.

There has been a constant increase in the per-cpita income

from 5,000 USD in 1990 to 14,700 USD in 2009 , thehighest in Latin America.


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Chilean Households distribution by

segments (1: Poorest 5: Richest)


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Chilean Auto sector

Motor vehicle sales reached all-time highs, with an estimated

total for the year of 275,000 units, while in 2011 the forecast

is for a new record of 312,000 units.

Some 38% of households have at least one vehicle, and most

of these (85%) have only one. As is to be expected, the

demand for cars is strongly linked to household income. Therichest 20% of the population owns 44% of the total cars,

while the poorest quintile owns only 7%.


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URUGUAY

Age and sex distribution for the year 2010:


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Uruguay has majority of its population living in urban areas.

GDP: USD 32,200 million

Per capita GDP: USD 12,600 The number of people per car in Uruguay is among the lowest

in the region, as the vehicle fleet has not yet fully recovered

from the crisis of 2002.


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The motorcycle and moped market of Uruguay is around

46.4% of the total vehicels in Uruguay.


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Competition & Environmental

Factors for Bajaj Auto in Chile &Uruguay


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Competition

Uruguay n Chile:

Taste n Preferences:

In these countries, people like heavy bikes such as HarleyDavidson, Tomos Motorcycles, Zundapp Motorcycles etc.

Due to its diverse cultural heritage and stunning mountains,there is a craze for biking.

However, there are other players like

Honda Motors

Kawasaki

BMW


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Environmental

Chile:

EPI (Enviro nmental Perform ance Index):

The index, which uses 25 indicators to measure a countrysperformance in six categories (environmental health, airpollution, water resources, biodiversity and habitat, productivenatural resources, and climate change), placed Chile 16th outof 163 countries.

The Climate Justice Alliance was formed in Chile by acoalition of 14 environmental and civic associations. Theseorganizations merged with the hope of underscoring theimportance of the climate in the public agenda. The membersintend to raise awareness of climate change in the country.


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.

The park houses numerous species of wild animals, including

the puma, the grey fox, and the vizcacha. It attracts around

400,000 visitors every year due to its grand vistas, natural hot

springs, and ski resorts.

Based on above parameters, Bajaj Auto can go for rented bike

services.

Bajaj can exploit the travel n tour opportunity in renting thebikes.


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.Uruguay:

Uruguay's climate is relatively mild.

Located entirely within the temperate zone Uruguay has a climatethat is fairly uniform nationwide.

Seasonal variations are pronounced, but extremes in temperature arerare. As would be expected by its abundance of water, high humidityand fog are common.

The absence of mountains, which act as weather barriers, makes alllocations vulnerable to high winds and rapid changes in weather asfronts or storms sweep across the country. .


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Legal & Political environment forBajaj Auto in Chile & Uruguay


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Goods imported from countries other than MERCOSUR(Southern Common Market) are subject to common externaltariffs (CET)

Custom tariffs- 0 to 2 %

VAT- 22%Import Surcharges

Transfer Pricing Regulations

For import & export transaction of goods where prices can bedetermined through transparent markets, stock exchanges orsimilar.


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Foreign investors may set up companies in Uruguay without

prior additional formalities.

Investment can be made in any currency.

Shareholders, partners and managers of companies may beeither locals or foreign national, and either residents or non-

residents in the country.

Foreign investors may set up operations by adopting the

structure of a local corporation or a branch of a foreign

enterprise.

Investment by locals & foreigners, both have access to same

benefits.


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There are no limits to hire foreign personnel.

Fund transfer can be made in any currency in view of the free

convertibility system in Uruguay.

Tax System

Companies- 25%

Non Resident- 12%

Incentives for foreign investors

1. Investment law

2. Free Zone law


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Investment law- If approved, tax benefit is given for a limited

period

Free Zone- users are exempt from all current and futurenational taxes, including those taxes for which a specific

legal exemption is required, in connection with the activities

performed within the Free Zone territory.


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Thank you!

bajaj auto ltd in chile in uruguay

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