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3-Wheelers Assembly Plant

 

  1. Product Description: A 3-Wheeler is a motorized vehicle used to transport about four people at a time. The vehicle is popular in India and other Southeast Asian countries and it is used as a “taxi”. Recently the vehicle has been introduced to the Ethiopian market and it provides transport services in Bahir Dar and a few other major urban centers.

 

  1. Market Potential: In urban transport market segmentation, a 3 – wheeler is between a mini-bus and a taxi. It is better than a mini-bus because it is less crowded and it also preferred to the taxi because it is much less expensive. Since it is introduced to the Ethiopian market very recently, no demand pattern for the vehicle has yet emerged. But one can have an intuitive feeling that it will have a good and growing demand in many urban areas especially in areas where the terrain is flat. The Amhara Region can capture the growing market for this vehicle if it starts assembling the vehicle to meet the national demand. It will be possible to sell at least 5000 units of this vehicle per year through out the country with an effective marketing strategy

 

  1. Source of Raw Material: For the first phase all the parts and components will be imported. But gradually at will be possible to produce some parts and components locally.

 

  1. Process and Technology: The main process is the orderly arrangement of the parts and components and step - by - step assembling of the parts and components until the vehicle has all its body parts together. An assembly operation does not have much machinery and equipment. It only requires tools, implements and some testing apparatus.

 

  1. Estimated Investment: For a plant that will assemble about 3000 units of the vehicle, the estimated investment will be

Ÿ         Building/ shade 300 m2 at Br 2000/m2=    700,000

Ÿ         Machinery (Tools….)                               500,000

Ÿ         Working Capital                                    1,000,000                                                                                               2,100,000 

 

  1. Benefits:- Self-sufficiency, facilitates urban transport

 

  1. Location:- Debre Birhan, Bahir Dar, Combolcha
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