SERVICING MOTOR VEHICLES BUSINESS IN UGANDA

 SERVICING MOTOR VEHICLES BUSINESS IN UGANDA

Introduction

Motor vehicle service is a series of maintenance procedures carried out at a set time interval or after the vehicle has travelled a certain milage. The service capacity is 8 cars per day; total capital investment is estimated at US$4,760 per year and estimated revenue is US$ 102,960 per year.

Clean-out is accomplished by applying suction near the top of the oil layer in the first compartment until it is completely removed, then proceeding directly to the sludge layer and removing the same. The intermediate water layer is left to act as a seal. The other chamber(s) should also be checked to ensure no significant quantity of oil or sludge is present.

Capital Investment Requirements

Capital investment item Units Qty @ $ Amount $
Compressor No. 1 1,250 1,250
Service tunnel No. 1 2,000 2,000
Cc pump No. 1 150 150
Tool box No. 1 1,250 1,250
Grease pump No. 1 100 100
Spray gun No. 1 10 10
TC on equipment 4,760

 

Servicing and Operating Costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Oil Ltrs 3 8 24 624 7,488
Brake fluid Ltrs 8 2 17 450 5,400
Oil Filter Pieces 4 2 9 225 2,700
Coolant ltrs 8 2 12 300 3,600
Fuel Filter Pieces 1 20 20 520 6,240
Battery water Ltrs 5 2 8 200 2,400
Subtotal 36 89 2,319 27,828
General costs(overheads)
Utilities (water and power) 400 4,800
Labour 900 10,800
Rent 350 4,200
Administrative cost 300 3,600
Miscellaneous costs 200 2,400

 

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Depreciation (Asset write off) Expenses) 99 1,190
Sub total 2,249 26,990
Total Operating Costs 4,568 54,818
  • Serving costs assumed 312 days per year with a daily capacity of 8 cars Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets

 

Project product Costs and Price Structure in US $

Item Qty/day Qty/ yr @ Pdn cost /yr UPx TR
Big cars 2 624 44 27,409 75 46,800
small cars 6 1,872 15 27,409 30 56,160
2,496 102,960

 

Profitability Analysis

Profitability Item Per day Per month Per Year
Revenue 330 8,580 102,960
Less production and operating Costs 176 4,568 54,818
Profit 154 4,012 48,142

Market Analysis

Serving a vehicle is mandatory to all owners of cars. The market is in both urban and rural areas since motor vehicles work in both areas. The quality of service would influence the market. Sources of Raw Materials Consumables can be found in motor vehicle spare parts shops. Government facilities and incentives The government has favorable tax policy incentives. There is assistance through organization like Private Sector Foundation Uganda where small scale firms and medium sector enjoy partial financing on development initiatives.

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