Group 5

1
A
Global Country Study Report
On
“Automobile Industry of Uganda”
Business Opportunities for Gujarat / India
Submitted to
Institute Code: 738
Institute Name: Noble Group of Institutions, Junagadh
Guided By
Prof. Monali Jani
In partial Fulfillment of the Requirement of the award of the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Prepared by:
Students of MBA
(Semester - III / IV)
Group No. - 5
Month & Year: November, 2013

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DECLARATION
We, following students, hereby declare that the Global Study Report, title “ Automobile Industry of
Uganda” is a result of our own work and our indebtedness to other work publications, reference, if
any, duly acknowledged, If we are found guilty of coping any other report or published and showing
as our original work, or extending plagiarism limit, We undersigned that We shall be liable and
punishable by GTU, which may include fail in examination, repeat study and re-submission of the
report or any other punishment that GTU may decide.
Enrolment no. Name Signature
127380592005 Jayshri Babar
127380592015 Detroja Nikhil
127380592025 Kapupara gopal
127380592035 Odedara varsha
127380592045 Rajyaguru jiten
127380592055 Trada harshad
Place: Junagadh Date:

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PREFACE
India is growing fast as an industrial nation with the help of new technology, advance management,
and advance knowledge of people. Now, people’s thoughts are changed and they turn to the
management course. It is said, ―Without effective management and proper planning, not a single
firm can run smoothly, effectively and efficiently.
Education is something which is not given in class rather; it is a process which can take place anytime
and at any place. When any subject is taught theoretically in class it is known as Academic but when
it is studied with the subject applicability in real life it is known as “Professional Education”.
M.B.A. has also attempted the blend of theoretical and practical approaches towards management
area. As we know that M.B.A. has included theoretical as well as practical knowledge with the help of
industrial training and summer internship report.
In the present era of globalization and liberalization, it is very necessary to be well aware of practical
functioning of any of the aspect, whether it is an industry, trade, commerce or information
technology. This knowledge helps students to understand corporate thoroughly.

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ACKNOWLEDGEMENT
We are very grateful to Gujarat Technological University for giving such a project work to us as a full
credit subject. This indeed expands our horizons and gives us a feeling that our management course
is not just restricted to traditional and conventional studies but it includes such kind of work which
can be called as contribution from us towards the economy of India. We express our deepest and
sincere gratitude towards our institute, Noble Group of Institutions, Junagadh, for being fully
supportive and giving us all the access and facilities that we needed to complete this report.
We are finally very thankful to Mr. Jay Talati, HOD of MBA Department and Prof. Monali Jani for
being patient and very kind to us, supporting us, correcting our errors and mistakes and also being
there always as information point whereby we could get all the needed information which was
difficult for us to collect for completing this project.
We hope that this report will satisfy you.
Place: Junagadh Date:

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Index
Sr.
No.
Particular
Page
No.
1
Summary of part 1report
Part – 1: country study and business opportunities for
Gujarat / India
2 Introduction of Uganda 13
3 Introduction of Automobile industry 26
4 STEEPLED Analysis of Automobile industry in Uganda
36
5
Overview of Automobile industry, trade & commerce in
Uganda
45
6
STEEPLED analysis of Automobile industry in Gujarat/
India
49
7
Analysis of Automobile industry / business potential
between Uganda and Gujarat / India
57
8
Present trade relation between Uganda and Gujarat /
India
59
9
BIBLIOGRAPHY
64

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EXECUTIVE SUMMARY
The main emphasis of this report has been to stress that automobile sector shas some special
characteristics, both in theory and practice, which make it a promising engine of broad-based growth
in India. I have discussed automobile role in making recombinant growth possible, the presence and
evolution of comparative advantage, and the importance of complementarities, linkages and
spillovers. I have provided some evidence for the potential of the automobile sector to be more than
just a software export enclave. At the same time, the final message of the paper is somewhat
counterintuitive, in that I do not recommend special incentives for the automobile sector. Instead,
the sector and the economy as a whole will benefit from a continuation of a broad reform agenda,
some aspects of which I discussed in the previous section. If there is any exception to this general
conclusion, it is in providing the conditions for rapid increases in access to modern vehicles for India’s
population.
The exception, in the automobile sector, is based on my view that it has particularly strong
complementarities with the broader automobile sector. Policies to achieve development goals
would do better to emphasize removing barriers to innovations that will support lower-cost access to
automobile of all kinds (two wheelers and four wheelers vehicles). Very specific, targeted, startup
subsidies to enable widespread, shared access to two wheelers and four wheelers in rural areas are
likely to have high social returns, since it appears that financially sustainable franchise models exist.
These high returns include better governance, as well as knowledge that are an important input into
‘empowerment’, or ‘development as freedom of automobile sector. In this respect, I would argue
that rural automobile access is an important complement to and enabler of local government reform
in India.
With the increasing growth in demand on back of rising income, expanding middle class and young
population base, in addition to a large pool of skilled manpower and growing technology, will propel
India to be among the world's top five auto-producers by 2015.

7
India is also one of the key markets for hybrid and electric medium-heavy-duty trucks and buses.
India is an extremely important market for Hyundai. The Indian automobile sector is poised for
steady and strong growth in the future. The Indian automobile industry holds good growth potential
for the mid-term and long term horizon, as per Mr Bo Shin Seo, MD and CEO, Hyundai Motor India
Ltd (HMIL).
Moreover, Ford Motor Co plans to convert India into global production centre for compact cars, once
its Sanand plant in Gujarat comes on stream in 2014, under a project codenamed B562 that may
induce three different compact cars from the same platform.
This report is intended to serve as a primer, describing the evolution of the Indian automobile
industry and its current status. The globalization of the auto industry increasingly fosters the
formation of new alliances and the entry of new manufacturers. In the context of developing
countries, India offers a potentially large market and a growing manufacturing base. The potential for
the Indian auto industry can be better assessed after examining the local economic, legislative, and
business environment. This report offers some elaboration on these conditions.
We can differentiate environmental factors from the internal variables of factors that are under
reasonable control of a company or industry. A company cannot change or influence the
environmental factors, but it does have fair amount of control over impact of environmental factors
on its performance. This control is achieved by, understanding, anticipating, and responding wisely to
environmental factors by management of internal factors. For example, a company cannot change
the weather condition, but it can manage its production and stocks of ice cream in a way that
minimizes the ill effect of uncertainty and fluctuations created by changing weather condition.
To understand, analyze and deal with environmental factors, we can use the “STEEPLED".
Social: Lifestyle and preferences of people that impact their choice of types of automobiles.
Due to fast movement of technology it is requisite to find the change in the lifestyle of consumers. In
the present research it has been endeavored to illustrate lifestyle of the buyers changes due to some
of the factors, such age, education, social class, income and some others factors. It has been seen
that some the factors has major role in the changing of buyer behaviors.

8
Customer base service: CFAO Motors Uganda Ltd provides a complete range of before- and after-
sales services to meet all customer needs.
The consumer is one of the strongest drivers in this industry, customer tastes and preferences
change very often. It is up to the car manufacturers to meet the needs and demands of their
customers and more cars are customized.
The rapid changes in the UGANDA economy had a very large effect on the individual's income. The
rising unemployment rates have lead the consumer to move from fuel guzzling SUVs to more
economic vehicles.
Technological: Technology relating to automobile designs
In an age of technological marvels, it may not be earth-stopping news that young engineers at
Uganda's Makerere University have made an electric car. But, as a university professor reminded
that, this is big news for Uganda.
Economic: Level of economic activity that affects need for commercial use of automobiles.
The vehicle landscape in Uganda is dominated by used vehicles, imported primarily from Japan, as
new vehicles remain unaffordable for most of Ugandans. BMI is forecasting total newly registered
vehicles, comprising both new and old vehicles, to come in at 64,658 in 2017, up from the estimated
40,616 in 2012. Driving our forecasts are improvement in the services, construction, and
manufacturing sectors, slowly falling interest rates and an acceleration in GDP growth. BMI forecasts
real GDP expansion of 6.1% in 2013, compared with an estimated 4.8% in 2012.
Environmental: Physical conditions effecting ability to use automobiles of different types. This will
also include state infrastructure such as roads for driving vehicles.
Infrastructural development: Uganda is a landlocked country served by a network of 27,000
kilometers (16,800 miles) of roads, although only 1,800 kilometers (1,100 miles) are paved and 4,800
kilometers (2,900 miles) of the remainder are suitable for all-weather purposes. This road network
supplied Uganda's total 25,900 passenger cars and 42,300 commercial.

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Political: After a year of turbulence, the Ugandan government stabilized the economy in 2012 with
inflation falling to 14.6% from 18.7% in 2011. Tightened fiscal and monetary policy helped bring fiscal
balances under control. While laying the foundations for recovery and growth, stabilization came at
the cost of a slowdown in gross domestic product (GDP) growth to 3.2% by June 2012. A gradual
recovery is expected, with real GDP growth projected to reach 4.4% in 2012, then picking up to 4.9%
in 2013 and 5.5% in 2014. Growth could be lower however if the suspension of budget support aid,
announced by several donors in November 2012 over a government corruption case, is maintained.
Legal: Uganda Road Safety and Regulations
First and foremost, you need to be alert of the governing Law lest you're taken unawares by a traffic
policeman, and yet your ignorance of the law is not a defense in Uganda Court rooms; Road safety in
Uganda is Governed by the THE TRAFFIC AND ROAD SAFETY ACT of 1970, This is Act which
consolidates the law relating to road traffic.
Ethical: After independence, there were conflicting local nationalisms. The Buganda's large
population, extensive territory in the favored south, and self-proclaimed superiority created a
backlash among other Ugandan peoples. Nubians shared little sense of identification with other
groups.
Demographic: This entry provides the distribution of the population according to age. Information is
included by sex and age group (0-14 years, 15-64 years, 65 years and over). The age structure of a
population affects a nation's key socioeconomic issues. Countries with young populations (high
percentage under age 15) need to invest more in schools, while countries with older populations
(high percentage ages 65 and over) need to invest more in the health sector. The age structure can
also be used to help predict potential political issues.
The Indian automobile industry has come a long way since the first car ran on the streets of Mumbai
in 1898. The initial years of the industry were characterized by unfavorable government policies. The
real big change in the industry, as we see it today, started to take place with the liberalization policies

10
that the government initiated in the 1991. The liberalization policies had a salutary impact on the
Indian economy and the automobile industry in particular.
The automobile industry in the country is one of the key sectors of the economy in terms of the
employment opportunities that it offers. The industry directly employs close to around 0.2 million
people and indirectly employs around 10 million people. The prospects of the industry also has a
bearing on the auto-component industry which is also a major sector in the Indian economy directly
employing 0.25 million people.
The automobile industry in India is gradually evolving to replicate those of developed countries. The
trends are emerging in the industry across segments, namely, passenger cars, multi-utility vehicles,
commercial vehicles, two-wheelers and tractors. The qualitative analysis of the various trends reveals
that the industry offers immense scope even for allied industries and those looking at investing in the
auto industry.
Of models that were hitherto undreamt of. Ford, General Motors, Toyota, Volvo are household
names today. Launch of a vehicle in one category spawns a war for the throne.
Social:-The demand of cars has been fueled by following factors:
Increasing Propensity to spend, Increasing distances between work-place and residence, Increase in
percentage of working women has increased number of earning members in a family. The average
family size is 4, which makes it favorable to buy a four wheeler.
Technological: increasing use of CNG and LPG instead of conventional fuel has made the entry of new
kinds of vehicle in the market. The customer can now use the Internet to place the order and expect
the manufacturer to fulfill his customized demand in the minimum time. With technological
advancements electrical car may emerge as a preferred option.
Economic:-The overall goals of economic policy in India are standard: high growth together with
macroeconomic stability and poverty reduction. Balancing these goals is the difficult part. For
example, incentives for exports, such as tax breaks, are designed to spur growth, but may adversely
affect the government’s fiscal deficit. As quantitative controls have receded in importance, such tax-
subsidy policies have become more significant policy components. The growth of India’s automobile

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sector and the success of the industry in particular, have tended to skew policy toward the industry,
with targeted incentives being implemented or recommended.
Environmental: - Physical infrastructure such as roads and bridges affect the use of automobiles. If
there is good availability of roads or the roads are smooth then it will affect the use of automobiles.
Physical conditions like environmental situation affect the use of automobiles. If the environment is
pleasant then it will lead to more use of vehicles. Technological solutions helps in integrating the
supply chain, hence reduce losses and increase profitability.
Political:-Indian Government has changed its role from controller to facilitator with prime focus on
providing better infrastructure, growth oriented economic policies and right environment to attract
investments. This has made giant auto manufacturers enter into India and affect the competitive
environment.
Legal: - Legal provision relating to environmental population by automobiles. Legal provisions
relating to safety measures, Confirms the government’s intention on harmonizing the regulatory
standards with the rest of the world Indian government auto policy aimed at promoting an
integrated, phased and conductive growth of the Indian automobile industry.
Ethical:- The national Census of India does not recognize racial or ethnic groups within India, but
recognizes many of the tribal groups as Scheduled Castes and Tribes (see list of Scheduled Tribes in
India). Nevertheless, modern anthropologists classify Indians as belonging to one of four major
ethno-racial groups, which significantly overlap because of racial admixture between populations:
Caucasoids, Australoids, Mongoloids and Negritos. The Caucasoids are found in the north, central
and south-western regions of India and generally speak Indo-Aryan languages; Australoids are found
in the south and generally speak Dravidian languages; Mongoloids are largely confined to the
Northeastern region of the country and for the most part, speak Tibeto-Burman languages; and
Negritos are found on the Andaman Islands located on the southeastern side of the country. These
speak a language known simply as Great Andamanese, a linguistic isolate not related to any known
language. And finally, Austro-Asiatic languages are spoken by only tribals or Adivasis, who can be of
either Australoid or Mongoloid racial stock.

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Demographic:- The demographics of India are inclusive of the second most populous country in the
world, with over 1.21 billion people (2011 census), more than a sixth of the world's population.
Already containing 17.5% of the world's population, India is projected to be the world's most
populous country by 2025, surpassing China, its population reaching 1.6 billion by 2050. Its
population growth rate is 1.41%, ranking 102nd in the world in 2010. Indian population reached the
billion marks in 2000.
The bilateral trade stood at US$ 454.47 million in 2011-12 registering a growth of 48.30 % over trade
volume of US$ 306.44 million in 2010-11.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry.
The Indian government should facilitate infrastructure creation, create favourable and predictable
business environment, attract investment and promote research and development. The role of
Industry will primarily be in designing and manufacturing products of world-class quality establishing
cost competitiveness and improving productivity in labour and in capital. With a combined effort, the
Indian Automotive industry will emerge as the destination of choice in the world for design and
manufacturing of automobiles.

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Introduction of Uganda
Uganda officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is bordered
on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the
Congo, on the southwest by Rwanda, and on the south by Tanzania. The southern part of the country
includes a substantial portion of Lake Victoria, shared with Kenya and Tanzania. Uganda lies within
the Nile basin, and has a varied but generally equatorial climate. Uganda takes its name from the
Buganda kingdom, which encompasses a large portion of the south of the country including the
capital Kampala. The people of Uganda were hunter-gatherers until 1,700 to 2,300 years ago, when
Bantus peaking populations migrated to the southern parts of the country.
Beginning in the late 1800s, the area was ruled as a colony by the British, who established
administrative law across the territory. Uganda gained independence from Britain on 9 October
1962. The period since then has been marked by intermittent conflicts, most recently a lengthy civil
war against the Lord's Resistance Army, which has caused tens of thousands of casualties and
displaced more than a million people.
The official language is English. Luganda, a central language, is widely spoken across the country, and
multiple other languages are also spoken including Swahili. The current President of Uganda is
Yoweri Kaguta Museveni, who came to power in a coup in 1986.
Uganda gained independence from Britain in 1962, maintaining its Commonwealth membership. The
first postindependence election, held in 1962, was won by an alliance between the Uganda People's
Congress (UPC) and Kabaka Yekka (KY). UPC and KY formed the first post-independence government
with Milton Obote as executive Prime Minister, the Buganda Kabaka (King) Edward Muteesa II
holding the largely ceremonial position of President and William Wilberforce Nadiope, the
Kyabazinga (paramount chief) of Busoga, as Vice President.[citation needed] In 1966, following a
power struggle between the Obote-led government and King Muteesa, the UPC-dominated
Parliament changed the constitution and removed the ceremonial president and vice president. In
1967, a new constitution proclaimed Uganda a republic and abolished the traditional kingdoms.
Without first calling elections, Obote was declared the executive President. After a military coup in

1971, Obote was deposed from power and the dictator Idi Amin seized control of the country. Amin
ruled Uganda with the military for the next eight y
country to maintain his rule. An estimated 300,000 Ugandans lost their lives at the hands of his
regime, many of them in the north, which he associated with Obote's loyalists. Aside from his
brutalities, he forcibly removed the entrepreneurial South Asian minority from Uganda, which left
the country's economy in ruins. Amin's atrocities were graphically accounted in the 1977 book,
State of Blood, written by one of his former ministers after he fled the country.
Uganda’s National Symbols
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ruled Uganda with the military for the next eight yearsand carried out mass killings within the
ibly removed the entrepreneurial South Asian minority from Uganda, which left
the country's economy in ruins. Amin's atrocities were graphically accounted in the 1977 book,
written by one of his former ministers after he fled the country.
earsand carried out mass killings within the
ibly removed the entrepreneurial South Asian minority from Uganda, which left
the country's economy in ruins. Amin's atrocities were graphically accounted in the 1977 book, A

The flag of Uganda was adopted in 1962. The black color identifies Uganda as a black nation of
Africa. The red shows Uganda's brotherhood with the rest of Africa and the world. The
of Uganda reflects the identity, aspirations and economic activity of Uganda. The sun represents the
abundant sunshine found in Uganda. The
it contains the three colors of Uganda
Basic Information
First it was a Colonial Uganda. Then it became early independent Uganda. Then Uganda ruled under
Idi Amin Dada. The period between 1986
Age structure
Median age:
Population
growth rate:
Birth rate:
Death rate:
Net migrate on
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was adopted in 1962. The black color identifies Uganda as a black nation of
Africa. The red shows Uganda's brotherhood with the rest of Africa and the world. The
identity, aspirations and economic activity of Uganda. The sun represents the
sunshine found in Uganda. The Crested Crane is the official bird of Uganda. In its plumage,
it contains the three colors of Uganda
olonial Uganda. Then it became early independent Uganda. Then Uganda ruled under
Idi Amin Dada. The period between 1986-2000 is known as post liberation war.
0-14 years: 49.1% (male 8,229,045/female 8,280,499)
15-24years: 21.2% (male 3,540,082/female 3,581,018)
25-54 years: 25.3% (male 4,254,335/female 4,259,622)
55-64 years: 2.3% (male 364,405/female 411,480)
65 years and over: 2.1% (male 320,237/female 400,110)
Total: 15.1 years
Male: 15 years
Female: 15.2 years (2011)
3.3% (2011)
45.8 births/1,000 population (2011)
11.6 deaths/1,000 population (July 2011)
0.02 migrant(s)/1,000 populations (2011)
was adopted in 1962. The black color identifies Uganda as a black nation of
Africa. The red shows Uganda's brotherhood with the rest of Africa and the world. The coat of arms
identity, aspirations and economic activity of Uganda. The sun represents the
is the official bird of Uganda. In its plumage,
olonial Uganda. Then it became early independent Uganda. Then Uganda ruled under
49.1% (male 8,229,045/female 8,280,499)
21.2% (male 3,540,082/female 3,581,018)
25.3% (male 4,254,335/female 4,259,622)
2.3% (male 364,405/female 411,480)
2.1% (male 320,237/female 400,110)

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rate:
Urbanization: Urban population: 13% of total population (2011)
Rate of urbanization: 4.8% annual rate of change (2010-
15 est.)
Major cities –
population KAMPALA (capital) 1.535 million (2011)
Sex ratio: At birth: 1.03 male(s)/female
Under 15 years: 1.01 male(s)/female
15-64 years: 1.02 male(s)/female
65 years and over: 0.68 male(s)/female
Total population: 1.01 male(s)/female (2011)
Infant mortality
rate: Total: 64.2 deaths/1,000 live births
Male: 73.9 deaths/1,000 live births
Female: 54.2 deaths/1,000 live births (2011)
Life expectancy at
birth: Total population: 53.45 years
Male: 52.4 years
Female: 54.54 years (2011)
Geography
The country is located on the East African plateau, lying mostly between latitudes 4°N and 2°S (a
small area is north of 4°), and longitudes 29° and 35°E. It averages about 1,100 metres (3,609 ft)
above sea level, and this slopes very steadily downwards to the Sudanese Plain to the north.
However, much of the south is poorly drained, while the centre is dominated by Lake Kyoga, which is
also surrounded by extensive marshy areas. Uganda lies almost completely within the Nile basin. The
Victoria Nile drains from the lake into Lake Kyoga and thence into Lake Albert on the Congolese
border. It then runs northwards into South Sudan. One small area on the eastern edge of Uganda is
drained by the Turkwel River, part of the internal drainage basin of Lake Turkana. Lake Kyoga serves

17
as a rough boundary between Bantu speakers in the south and Nilotic and Central Sudanic language
speakers in
the north. Despite the division between north and south in political affairs, this linguistic boundary
runs roughly from northwest to southeast, near the course of the Nile. However, many Ugandans live
among people who speak different languages, especially in rural areas. Some sources describe
regional variation in terms of physical characteristics, clothing, bodily adornment, and mannerisms,
but others claim that those differences are disappearing. Although generally equatorial, the climate
is not uniform as the altitude modifies the climate. Southern Uganda is wetter with rain generally
spread throughout the year. At Entebbe on the northern shore of Lake Victoria, most rain falls from
March to June and in the November/December period. Further to the north a dry season gradually
emerges; at Gulu about 120 km (75 mi) from the South Sudanese border, November to February is
much drier than the rest of the year. The northeastern Karamoja region has the driest climate and is
prone to droughts in some years. Ruwenzori, a snowy peaked mountainous region on the southwest
border with Congo (DRC), receives heavy rain all year round and is the source of the Nile. The south
of the country is heavily influenced by one of the world's biggest lakes, Lake Victoria, which contains
many islands. It prevents temperatures from varying significantly and increases cloudiness and
rainfall. Most important cities are located in the south, near Lake Victoria, including the capital
Kampala and the nearby city of Entebbe. Although landlocked, Uganda contains many large lakes;
besides Lake Victoria and Lake Kyoga, there are Lake Albert, Lake Edward and the smaller Lake
George.

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Tourism
Tourism in Uganda is paying attention on Uganda's landscape and wildlife. Uganda has a very various
culture, landscape, flora, and fauna. By the late 1980s, Uganda's political climate had stabilized and
conditions were suitable for reinvestment in Uganda's tourist industry. Game viewing is the most
popular tourist activity in Uganda. Uganda is the third country where it is possible to visit mountain
gorillas. Uganda's prime tourist attractions are Mountain gorillas.

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Major Religions
The Anglican Church of Uganda has the second largest number of followers. The after that most
reported religion of Uganda is Islam. The northern and Western Nile regions are Catholic and eastern
Uganda has the highest percentage of Muslims. There were about 80,000 Indians in Uganda, Forty
years ago. The church of Uganda is a part of the Anglican Communion. Currently the Church of
Uganda comprises 34 dioceses, each headed by a bishop.
Agriculture
Uganda's favorable soil conditions and climate have contributed to the country's agricultural success.
Most areas of Uganda have usually received plenty of rain. In some years, small areas of the

20
southeast and southwest have averaged more than 150 millimeters per month. In the north, there is
often a short dry season in December and January. Temperatures vary only a few degrees above or
below 20°C but are moderated by differences in altitude. These conditions have allowed continuous
cultivation in the south but only annual cropping in the north, and the driest northeastern corner of
the country has supported only pastorals. Although population growth has created
pressures for land in a few areas, land shortages have been rare, and only about one-third of the
estimated area of arable land was under cultivation.
Insurance Industry
The Ugandan insurance industry recorded a positive growth rate during the review period and was
supported by relatively stable macro-economic conditions, a favorable investment climate and
economic growth. The total number of policies issued in Uganda grew in 2010 and in 2011. The
industry is dominated by the non-life insurance segment. For low income earners, Uganda has
promoted micro insurance products. However, there are many challenges in operating this kind of
product such as a lack of public awareness and inefficient distribution channels. The Ugandan life
insurance segment is highly concentrated with the five-leading insurers representing a market share
of more than 90% in 2011 in gross written premium terms.

21
Banking Sector
The Bank of Uganda (BOU) is the Central Bank of the Republic of Uganda. It was established in 1966
by act of parliament. BOU is 100% owned by the Government of Uganda, but is not a government
department. Emmanuel Tumusiime Mutebile is the governor of Bank of Uganda.
Foreign Relations
Uganda is bordered by land and depends on foreign imports for most of its consumer goods and
energy requirements. (1)Israel:-Uganda‘s relations with Israel remain fearfully stressed due to the
1976 capturing of a French airliner hijacked by the Palestinian Liberation Organization in an airport in
the now-famous city.(2)Kenya:-From 1961 to 1965 the two states, along with Tanzania, were
integrated in the East African Common Services Organization, a common market with a loose federal
structure.
Education sector
The literacy rate in Uganda is 56.5% and 30.7% for females and males respectively. The rates for
primary school enrollment are rather high, with 63% for females and 79% for males. This percentage
drops to 10% for females and 17% for males for the secondary school enrollment.
The government spent only 2% of the 2000 annual budget on education, down from 3% in 1995. This
is a direct result from the ongoing political instability which results in less funding and less focus on
improving the education system in Uganda.

22
Cuisine
Uganda Waragi is one of the common alcoholic beverages in Uganda. Main dishes are usually made
up of groundnuts, beans or meat. The starch usually comes from ugali or matoke in the South, or an
ugali made from millet in the North. Cassava, yam and African sweet potato are also eaten. The more
rich take in white potato and rice in their diets. Soybeans were considered as a healthy food and are
also used especially for breakfast. Chapatti is also component of Ugandan cuisine.
Health sector
The main problem facing Uganda right now is HIV/AIDS. More than 1.1 million people, or 4% of the
population, are currently living with AIDS. This epidemic leads to a high mortality rate as well as a
lower life expectancy, higher infant mortality and death rates, and lower population and growth
rates. The infant mortality rate exceeds 89 deaths per 1000 births mainly due to the AIDS epidemic
and only 38% of the births attended by a skilled health attendant.
Another problem facing people in Uganda is lack of food and health services. This is another direct
result from the political instability and the AIDS epidemic. Many people do not receive adequate
amounts of food nor do they receive the medical attention they deserve when faced with severe
health issues. The only positive point seems to be that children in Uganda do have regular
immunization against DPT and measles with immunization programs reaching 55% of the population
for DPT and 56% of the population for measles
Transportation and Communications
Uganda has about 30,000 kilometers (18,750 mi.), of roads; some 2,800 kilometers (1,750 mi.) are
paved. Most radiate from Kampala. The country has about 1,350 kilometers (800 mi.) of rail lines. A
railroad originating at Mombasa on the Indian Ocean connects with Tororo, where it branches

23
westward to Jinja, Kampala, and Kasese and northward to Mbale, Soroti, Lira, Gulu, and Pakwach.
However, the only railway line still operating is the one to Kampala.
Uganda's vital link to the port of Mombasa is now mainly by road, which serves its transport needs
and also those of its neighbors-Rwanda, Burundi, and parts of Congo and South Sudan. An
international airport is at Entebbe on the shore of Lake Victoria, some 32 kilometers (20 mi.) south of
Kampala.
The Uganda Communications Commission (UCC) regulates communications, primarily "delivered
through an enabled private sector."
Mining & Petroleum
Uganda has large quantities of natural resources, though a lot of the country has yet to be explored
for the true extent of its potential. To date, the natural resources mined from Uganda are gold,
diamonds, iron ore, nickel, cobalt, tantalum, niobium and other rare earth elements.
Uganda will host its first biggest international mining conference in the first week of October as the
country tries to revive the industry to its full potential. The Uganda Chamber of Mines and Petroleum
(UCMP), the body that links investors to government departments, will hold the Mineral Wealth
Conference from 1st - 2 October, drawing participants from East Africa and beyond.
In late 2012, the government of Uganda was taken to court over value added tax that it placed on
goods and services purchased by a foreign oil company operating in the country, Tullow Oil.The court
case will be heard at an international court based in the Uganda and could have serious ramifications
for Uganda if lost; Uganda’s membership at the World Bank depends on its maintenance of “multi-
lateral investments treaties and associated guarantees”. There is also a possibility that the country
could be sanctioned by the World Bank if found in breach of trade and investment agreements
signed bilaterally with the United Kingdom.
The Ugandan government insists that Tullow cannot claim taxes on supplies as recoverable costs
before oil production starts. Sources from within the government reveal that the main concern at

24
present is the manner in which millions of dollars have been lost in the past decade, money that
could allegedly have stayed in Uganda for investment in the public sector; a Global Financial Integrity
report recently revealed that illicit money flows from Uganda between 2001 and 2012 totalled $680
million.
Tullow Oil is being represented in the court case by Kampala Associated Advocates, whose founder is
Elly Kurahanga, the President of Tullow Uganda. A partner at Kampala Associated Advocates, Peter
Kabatsi, was also Uganda’s solicitor general between 1990 and 2002, and he has denied claims that
he negotiated contracts with foreign oil firms during his time in this role.
The Ugandan government has yet to see any result from another tax dispute involving the Canadian
oil firm Tullow Oil and British company Heritage Oil; this dispute dates back to Heritage Oil’s sale of
rights to two oil blocks in Uganda’s Lake Albert region to Tullow Oil in July 2010. Uganda claims that
Heritage Oil owes USD435 million in capital gains tax arising from this sale, a claim that Heritage is
currently disputing in a London-based court.
Human Rights
Uganda experiences difficulties in the achievement of international standards of human rights for all
citizens. These difficulties consist of the provision of proper sanitation facilities, internal
displacement and development of adequate infrastructure. As per the Relief Web sponsored
Humanitarian Profile – 2012 Uganda is making considerable developments in this area.
Ugandan Shilling
The shilling is the currency of Uganda. Officially, the shilling is divided into 100 cents but no
subdivisions have been issued since the revaluation of the shilling in 1987.Banknotes are 1000, 2000,
5000, 10,000, 20,000, 50,000 shillings.

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Environment and conservation
Uganda has 60 protected areas, including nine national parks: Bwindi Impenetrable National Park and
Rwenzori Mountains National Park (both UNESCO World Heritage Sites[20]), Kibale National Park,
Kidepo Valley National Park, Lake Mburo National Park, Mgahinga Gorilla National Park, Mount Elgon
National Park, Murchison Falls National Park, Queen Elizabeth National Park, and Semuliki National
Park.
Uganda's new vehicle market is a tiny fraction of the total autos sector, with used vehicles still the
only affordable option for many consumers. Even then, sales of passenger cars are around two thirds
the volume of commercial vehicles, with buses to comprising the lions share as public transport is the
most extensive means of getting around.

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INTRODUCTION OF AUTOMOBILE INDUSTRY
The automobile as we know, it was not invented in a single day by a single inventor. The history of
the automobile reflects an evolution that took place worldwide. It is estimated that over 100,000
patents created the modern automobile. However, we can point to the many firsts that occurred
along the way.
Several Italians recorded designs for wind driven vehicles. The first was Guido da Vigevano in 1335.
Vaturio designed a similar vehicle, which was also never built. Later Leonardo da Vinci designed
clockwork driven tricycle with tiller steering and a differential mechanism between the rear wheels.
A Catholic priest named Father Ferdinand Verbiest has been said to have built a steam powered
vehicle for the Chinese Emporer Chien Lung in about 1678. Since James Watt didn't invent the steam
engine until 1705 it is guessed that this was possibly a model vehicle powered by a mechanism like
Hero's steam engine, a spinning wheel with jets on the periphery.
The first vehicle to move under its own power for which there is a record was designed by Nicholas
Joseph Cugnot and constructed by M. Brezin in 1769. A second unit was built in 1770, which weighed
8000 pounds and had a top speed on 2 miles per hour And on the cobble stone streets of Paris this
was probably as fast as anyone wanted to go it.
The early steam powered vehicles were so heavy that they were only practical on a perfectly flat
surface as strong as iron. A road thus made out of iron rails became the norm for the next hundred
and twenty-five years. The vehicles got bigger and heavier and more powerful and as such they were
eventually capable of pulling a train of many cars filled with freight and passengers.
Many attempts were being made in England by the 1830's to develop a practical vehicle that didn't
need rails. A series of accidents and propaganda from the established railroads caused a flurry of
restrictive legislation to be passed and the development of the automobile bypassed England.
Several commercial vehicles were built but they were more like trains without tracks.

27
The development of the internal combustion engine had to wait until a fuel was available to combust
internally. Gunpowder was tried but didn't work out. Gunpowder carburetors are still hard to find.
The first gas really did use gas. They used coal gas generated by heating coal in a pressure vessel or
boiler. A Frenchman named Etienne Lenoir patented the first practical gas engine in Paris in 1860 and
drove a car based on the design from Paris to Joinville in 1862. His one-half horsepower engine had a
bore of 5 inches and a 24-inch stroke. It was big and heavy and turned 100 rpm.
Lenoir had a separate mechanism to compress the gas before combustion. In 1862, Alphonse Bear de
Rochas figured out how to compress the gas in the same cylinder in which it was to burn, which is the
way we still do it. This process of bringing the gas into the cylinder, compressing it, combusting the
compressed mixture, then exhausting it is known as the Otto cycle, or four-cycle engine. Lenoir
claimed to have run the car on benzine and his drawings show an electric spark ignition. If so, then
his vehicle was the first To run on petroleum based fuel, or petrol, or what we call gas, short for
gasoline.
Siegfried Marcus, of Mecklenburg, built a car in 1868 and showed one at the Vienna Exhibition of
1873. His later car was called the Strassenwagen had about 3/4-horse power at 500 rpm. It ran on
crude wooden wheels with iron rims and stopped by pressing wooden blocks against the iron rims,
but it had a clutch, a differential and a magneto ignition. One of the four cars, which Marcus built, is
in the Vienna Technical Museum and can still be driven under its own power.
In 1876, Nokolaus Otto patented the Otto cycle engine, de Rochas had neglected to do so, and this
later became the basis for Daimler and Benz breaking the Otto patent by claiming prior art from de
Rochas.
In 1885, Gottllieb Daimler's in Bad Cannstatt built the wooden motorcycle. Daimler's son Paul rode
this motorcycle from Cannstatt to Unterturkheim and back on November 10, 1885. Daimler used a
hot tube ignition system to get his engine speed up to 1000 rpm.
On 29th January 1886, Karl Benz was granted a patent on it and on 3rd July 1886, he introduced the
first automobile in the world to an astonished public.
Also in August 1888, William Steinway, owner of Steinway & Sons piano factory, talked to Daimler
about US manufacturing right and by September had a deal. By 1891 the Daimler Motor Company,

28
owned by Steinway, was producing petrol engines for tramway cars, carriages, quadricycles, fire
engines and boats in a plant in Hartford, CT. Steam cars had been built in America since before the
Civil War but the early one was like miniature locomotives. In
1871, Dr. J. W. Carhart, professor of physics at Wisconsin State University, and the J. I. Case Company
built a working steam car.
By 1890 Ransom E. Olds had built his second steam-powered car. One was sold to a buyer in India,
but the ship it was on was lost at sea.
Running by February, 1893 and ready for road trials by September, 1893 the car built by Charles and
Frank Duryea, brothers, was the first gasoline powered car in America. The first run on public roads
was made on September 21, 1893 in Springfield, MA.
Henry Ford had an engine running by 1893 but it was 1896 before he built his first car. By the end of
the year Ford had sold his first car, which he called a Quadracycle, for $200 and used the money to
build another one. With the financial backing of the Mayor of Detroit, William C. Maybury and other
wealthy Detroiters, Ford formed the Detroit Automobile Company in 1899. A few prototypes were
built but no production cars were ever made by this company. It was dissolved in January 1901. Ford
would not offer a car for sale until 1903.
Eli Olds built first petrol-powered car. This car was running by 1896 but production of the Olds Motor
Vehicle Company of Detroit did not begin until 1899. After an early failure with luxury vehicles they
established the first really successful production with the classic Curved Dash Oldsmobile.
It sold for $650. In 1901 600 were sold and the next years were 1902 - 2,500, 1903 - 4,000, and 1904 -
5,000. In August 1904 Ransom Olds left the company to form Reo (for Ransom Eli Olds). E. Olds was
the first mass producer of gasoline-powered automobiles in the United States, even though Duryea
was the first auto manufacturer with their 13 cars.
The Rolls Royce Silver Ghost of 1906 was a six cylinder car that stayed in production until 1925. It
represented the best engineering and technology available at the time and these cars still run
smoothly and silently today. This period marked the end of the beginning of the automobile.

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Automobile industry of Uganda
Uganda's new vehicle market is a tiny fraction of the total autos sector, with used vehicles still the
only affordable option for many consumers. Even then, sales of passenger cars are around two thirds
the volume of commercial vehicles, with buses to comprising the lion‟s share as public transport is
the most extensive means of getting around.
However, there are signs that new vehicle sales are rising, though at a much slower rate. According
to the Uganda Motor Industry Association, sales of new vehicles for the first 8 months of 2011 were
up 3% year-on-year to 1,785 units, compared with the 1,618 units sold the year earlier.
As in other countries in the region, the development has been spurred by a healthy construction
sector, which has generated order for trucks and heavy vehicles. The data show that out of the total
of vehicles sold, 984 were raise up trucks, while passenger car sales comprised 377 estates and 227
sedans.
IN, According to local dealers, access to financing is boosting increase in the new vehicle market.
Some banks will finance a largest percentage of the cost of a new car than a second-hand one, as a
new one will be fewer of a risk. The Development Finance Company of Uganda Bank offers 100%
financing for new trucks and buses. However, the data show that bus sales have not spiked as
expected in preparation for the phasing out of 14-seater vans used as buses.
In the new car market, Toyota Uganda is the recognized leader. In the first eight months of 2011, it
accounted for 718 of the 1,785 latest vehicles sold, equal to a market share of around 40%. It was
followed by Motorcar Uganda with sales of 309 units and Skenya Motors with sales of just 34 units.
There is also a prosperous motorcycle market in the country, which has involved investment in local
production. In February 2011, the local distributor for Yamaha motorcycles, Nile Fishing Company,
opened the country's first motorcycle assembly plant.

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History Automobile Industry in Uganda
The Automobile Association of Uganda was founded in 1986. In 1995 the Association was admitted
to the FIA family as a motor sporting body as well as a Mobility and Tourism Club. The Automobile
Association of Uganda relinquished the Motor Sporting arm in 2001 to focus on Road Safety, Mobility
and Tourism services.
At the close of 2012 AA Uganda had 3,451 registered members. Currently the Automobile
Association of Uganda is involved in different Road Safety campaigns including:
Uganda Helmet Vaccine Initiative (UHVI) under the Global Helmet Vaccine initiative (GHVI) carrying
out campaign in the use of helmets by commercial riders. Under FIA Road Safety Grant we are
carrying out instruction on Bus driving to our instructors/trainers.
CENARIO OF AUTOMOBILE INDUSTRY OF UGANADA
The Uganda Autos show is your ultimate business travel tool for navigating the Uganda Automotive
Industry.
As a new driver on the African roads, we suggest on important road safety rules and driving tips in
Uganda, what to consider when buying or hiring a car in Uganda, where to get Automotive insurance,
how to finance your car purchase, business opportunities and useful Automotive industry updates.
While some travelers have describe driving in Uganda as a series of near misses, if you really love
doing your business supplely when in Uganda, you must brave the road by yourself.
As a foreign business traveler, you're likely to encounter road conditions that differ significantly from
those back home, especially if you came from developed economies like the United States.
In Uganda you will drive on the left hand side of the road and your general speed limit on national
highways should not exceed 100km/h and 65 km/h in urban built up areas, unless otherwise
indicated.

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UGANDA AUTOMOBILE INDUSTRY AT PRESENT
Automotive Industry development Alliance (AIDA) is an alliance of automotive industry stakeholders,
automotive associations, automotive aftermarket and member and affiliates manufacture,
distributors of motor vehicle parts, accessories, service, tool, equipment, materials and supplies.
AIDA was formed in 2009 from the consolidation of Automotive Parts dealers, Automotive
Accessories and the Automotive Service Industry players. The AIDA is an interest industrial grouping
of the trading, commercial and other companies which make up the Ugandan automotive industry
and allied industries. AIDA intends to work in partnership with various automotive industry players,
companies, car manufacturers, agents, suppliers, businesses, districts, government, local
government, authorities, tertiary and education institutions, associations, national and international
organizations, to provide a forum of sharing ideas, discuss issues and devise solutions to the
automotive industry.
Specialties
Uganda Automotive Industry, cars, trucks, garages, roads, repairs, motor cycles, and auto spares,
traffic, regulation, agents.
Future scenario in automobile industry of Uganda
Uganda's new vehicle market is a tiny fraction of the total autos sector, with second-hand vehicles
still the only reasonable option for many consumers. Even then, sales of passenger cars are around
2/3the volume of commercial vehicles, with buses comprising the lion's share as public transport is
the most general means of getting around. However, there are signs that new vehicle sales are
increasing, albeit at a much slower rate. According to the Uganda Motor Industry Association, sales
of new vehicles for the first eight months of 2011 were up 3% year-on-year to 1,785 units, compared
with the 1,618 units sold the year earlier.

32
INDIAN AUTOMOBILE INDUSTRY
The automotive industry in India is one of the larger markets in the world. It had previously been one
of the fastest growing globally, but is currently experiencing flat or negative growth rates. India's
passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with
an annual production of more than 3.9 million units in 2011. According to recent reports, India
overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such
old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France,
Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009,
India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and
Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of
2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were
produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest
growing automobile market in the world in that year. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5
million as previously projected.
The majority of India's car manufacturing industry is based around three clusters in the south, west
and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share.
The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster
around the National Capital Region contributes 32%. Chennai, with the India operations of Ford,
Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot
Citroën is about to begin their operations by 2014. Chennai accounts for 60% of the country's
automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's
largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the
western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra,
Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants
in the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine
assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.
Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in
Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-
Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda

33
and Bangalore with Toyota are some of the other automotive manufacturing regions around the
country. In 2011, there were 3,695 factories producing automotive parts in all of India. The average
firm made US$6 million in annual revenue with profits close to US$400 thousand.
INDIAN AUTOMOBILE INDUSTRY AT PRESENT
The Indian automobile industry has come a long way since the first car ran on the streets of Mumbai
in 1898. The initial years of the industry were characterized by unfavorable government policies. The
real big change in the industry, as we see it today, started to take place with the liberalization policies
that the government initiated in the 1991. The liberalization policies had a salutary impact on the
Indian economy and the automobile industry in particular.
The automobile industry in the country is one of the key sectors of the economy in terms of the
employment opportunities that it offers. The industry directly employs close to around 0.2 million
people and indirectly employs around 10 million people. The prospects of the industry also has a
bearing on the auto-component industry which is also a major sector in the Indian economy directly
employing 0.25 million people.
The automobile industry in India is gradually evolving to replicate those of developed countries. The
trends are emerging in the industry across segments, namely, passenger cars, multi-utility vehicles,
commercial vehicles, two-wheelers and tractors. The qualitative analysis of the various trends reveals
that the industry offers immense scope even for allied industries and those looking at investing in the
auto industry.
The Indian automobile industry is undergoing a revolution of sorts. The vehicle war is on. And it's a
fight to the finish. Within the span of a few years, the vehicle market has displayed an array
Of models that were hitherto undreamt of. Ford, General Motors, Toyota, Volvo are household
names today. Launch of a vehicle in one category spawns a war for the throne.
The Ikon, Accent and Baleno have been launched. The Wagon R, due next, is predicted to give tough
competition to those already in that sector. Czech carmaker, Skoda, a subsidiary of German auto
major Volkswagen, is introducing the Octavia. India's only Sports car, the San Storm, is all set to race
into our hearts. Hero Motors and the Kinetic Group are both set to launch new models.

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REPRESENTED BRANDS OF UGANDA

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BUSINESS OPPORTUNITIES FOR INDIA
Tata Motors Limited is India's largest automobile company, with consolidated profit of INR 1, 65,654
corers (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the compact, small size car and
utility vehicle segments. It is the world's fourth biggest truck and bus manufacturer. The Tata Motors
Group’s above 55,000 employees are guided by the vision to be ''best in the manner in which we
work, best in the products we deliver, and best in our value system and ethics.''
Tata Motors, the first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile company. Through
subsidiary and relate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain
and South Africa. Among them does Jaguar Land over, a business comprise the two iconic British
brands that were acquired in 2008. JLR supports both state of the art engineering and design facilities
and three developed plants (Sol hull, Castle Bromwich &Hale wood) in the UK. In 2004,
Tata Motors acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck
maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while too exporting these products to several international markets.
Tata Motors is also expanding its international marks, established through exports since 1961. The
company's commercial and passenger vehicles are already being marketed in several countries in
Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has
franchisee or joint venture assembly operations.
It was Tata Motors, which developed the first indigenously increment Light Commercial Vehicle,
India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger
car. Within 2 years of launch, Tata Indica became India's largest selling car in its segment. In 2005,
Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed
small -truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and
the world have been looking forward to. The Tata Nano has been subsequently launched.

36
STEEPLED Analysis of
Uganda

37
STEEPLED ANALISIS
Environmental factors for a company or an industry refer to variables and conditions around that
company and industry that affect its working and performance, but which cannot be controlled. For
example, the weather conditions in a city may affect the sale of Ice cream in a city, but the company
selling or manufacturing ice creams has Little control over the weather.
We can differentiate environmental factors from the internal variables of factors, that are under
reasonable control of a company or industry. A company cannot change or influence the
environmental factors, but it does have fair amount of control over impact of environmental factors
on its performance. This control is achieved by, understanding, anticipating, and responding wisely to
environmental factors by management of internal factors. For example, a company cannot change
the weather condition, but it can manage its production and stocks of ice cream in a way that
minimizes the ill effect of uncertainty and fluctuations created by changing weather condition.
To understand, analyze and deal with environmental factors, we can use the “STEEPLED" framework
that classifies all environmental factors in the following eight groups.
1. Social,
2. Technological,
3. Economic,
4. Environmental,
5. Political,
6. Legal,
7. Ethical and
8. Demographic
Some of the major environmental factors affecting automobile industry in each of these groups are
described below.

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1. Social
• Lifestyle and preferences of people that impact their choice of types of automobiles.
Due to fast movement of technology it is requisite to find the change in the lifestyle of consumers.
In the present research it has been endeavored to illustrate lifestyle of the buyers changes due to
some of the factors, such age, education, social class, income and some others factors. It has been
seen that some the factors has major role in the changing of buyer behaviors.
The factors responsible in changing the lifestyle of the consumers are price, place, attributes,
advertisement, favorite programs attributes preferred by the consumers and significant changes
have been observed.
• Customer base service:
CFAO Motors Uganda Ltd provides a complete range of before- and after-sales services to meet all
customer needs:
Manufacturers' warranty
All vehicles and spare parts sold through our network are fully covered by automakers' warranties.
Original spare parts
CFAO Motors Uganda Ltd uses only original spare parts for the brands it distributes in order to
provide the highest standards of service and to guarantee product performance over the long term.
After-sales service
CFAO Motors Uganda Ltd offers a comprehensive range of after-sales services thanks to leading-edge
facilities and skilled personnel who receive training from automakers on a regular basis.

39
The consumer is one of the strongest drivers in this industry, customer tastes and preferences
change very often. It is up to the car manufacturers to meet the needs and demands of their
customers and more cars are customized.
The rapid changes in the UGANDA economy had a very large effect on the individual's income.
The rising unemployment rates have lead the consumer to move from fuel guzzling SUVs to more
economic vehicles
2. Technological
• Technology relating to automobile designs
In an age of technological marvels, it may not be earth-stopping news that young engineers at
Uganda's Makerere University have made an electric car. But, as a university professor reminded
that, this is big news for Uganda.
Last week, the College of Engineering Design, Art and Technology at Makerere conducted a 4km
test-drive on its Kiira EV, a two-seater vehicle that runs on rechargeable lithium batteries instead of
petrol. Its makers say that in motorway conditions, the Kiira EV can attain a speed of 100km/h and
cover 80km (50 miles) before it needs recharging.
• Technology development in automobile sector
Automotive Industry development Alliance (AIDA) is an alliance of automotive industry
stakeholders, automotive associations, automotive aftermarket and member and affiliates
manufacture, distributors of motor vehicle parts, accessories, service, tool, equipment, materials and
supplies. AIDA was formed in 2009 from the consolidation of Automotive Parts dealers, Automotive
Accessories and the Automotive Service Industry players.
The AIDA is an interest industrial grouping of the trading, commercial and other companies which
make up the Ugandan automotive industry and allied industries. AIDA intends to work in partnership

40
with various automotive industry players, companies, car manufacturers, agents, suppliers,
businesses, districts, government, local government, authorities, tertiary and education institutions,
associations, national and international organizations, to provide a forum of sharing ideas, discuss
issues and devise solutions to the automotive industry.
3. Economic:
• Level of economic activity that affects need for commercial use of automobiles
The vehicle landscape in Uganda is dominated by used vehicles, imported primarily from Japan, as
new vehicles remain unaffordable for most of Ugandans. BMI is forecasting total newly registered
vehicles, comprising both new and old vehicles, to come in at 64,658 in 2017, up from the estimated
40,616 in 2012. Driving our forecasts are improvement in the services, construction, and
manufacturing sectors, slowly falling interest rates and an acceleration in GDP growth. BMI forecasts
real GDP expansion of 6.1% in 2013, compared with an estimated 4.8% in 2012.
Commercial vehicles, in particular heavy trucks and buses and minibuses, are expected to
outperform the segment, with growth forecasted to come in at 14.3% and 11.3% respectively in
2012-2013.
• The population figures and automobile buying capacity of people:
Uganda’s population has being growing at an average rate of 2.5 percent per annum, increasing
from 12.6 million people in 1985 to 22.2 million in 2000 and projected at 23.4 million by the end of
2002. About 80 percent of the country’s total land area is arable, although it is estimated that only 30
percent is being productively utilized.
• Excess capacity:
Kenya Revenue Authority, the agency that collects taxes on behalf of the Kenya government, has
rejected a license application by a company that was appointed by the Uganda government to
operate an inland car port at Mombasa, citing “excess capacity” provided by similar facilities at the
coastal town.

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4. Environmental:
• Physical conditions effecting ability to use automobiles of different types. This will also include
state infrastructure such as roads for driving vehicles
• Infrastructural development:
Uganda is a landlocked country served by a network of 27,000 kilometers (16,800 miles) of roads,
although only 1,800 kilometers (1,100 miles) are paved and 4,800 kilometers (2,900 miles) of the
remainder are suitable for all-weather purposes. This road network supplied Uganda's total 25,900
passenger cars and 42,300 commercial.
• Global warming
Climate change and the negative impact that various human activities can have on our ecosystem
are among the inescapable challenges world leaders are facing. While the issue of global warming
remains highly debated, there is increasing evidence to support the environmental impact of carbon
emissions.
It is estimated that the automotive industry is responsible for roughly 15% of global carbon
emissions, equating to roughly eight billion metric tons per year. Although environmental protection
has been cited as the primary driver for change, other factors such as the price volatility of fossil fuels
and energy independence also have helped perpetuate a shift towards alternative and renewable
energy sources. Accordingly, many governments have implemented a wide array of policies aimed at
reducing carbon emissions, some of which specifically target the automotive industry.
• Hybrid cars effect on the auto industry:

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Although continuing to grow as a sector, hybrid cars still constitute a very small percentage of the
automobiles manufactured and sold worldwide. Ideas can be potent, however, especially when
backed by legislation and international agreements.
5. Political:
After a year of turbulence, the Ugandan government stabilized the economy in 2012 with inflation
falling to 14.6% from 18.7% in 2011. Tightened fiscal and monetary policy helped bring fiscal
balances under control. While laying the foundations for recovery and growth, stabilization came at
the cost of a slowdown in gross domestic product (GDP) growth to 3.2% by June 2012. A gradual
recovery is expected, with real GDP growth projected to reach 4.4% in 2012, then picking up to 4.9%
in 2013 and 5.5% in 2014. Growth could be lower however if the suspension of budget support aid,
announced by several donors in November 2012 over a government corruption case, is maintained.
• Legislation
It is a fact that for industries to survive the test of time, there has to be consistent investment in
improved research and technology. This is evident in the automobile industry; there has been
continuous investment in modern technology, current automobiles being produced meet the current
legislation, environmental or other legal requirements that come to the fore.
• Taxes and duty
Excise duty on petrol and diesel: Excise duty on petrol and diesel has been increased by Ushs 50 per
liter. Excise duty on petrol will therefore increase to Ushs 900 from Ushs 850 per liter, while that on
diesel will increase to Ushs 580 from Ushs 530 per liter. Transport being a key driver for every
economic activity, the increment is likely to increase the cost of living
• Stamp Duty

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Stamp duty on 3rd party insurance policies for motor vehicles has been increased by Ushs 30,000.
Motor vehicle owners will thus not only pay more for fuel but also insurance.
6. Legal:
• Uganda Road Safety and Regulations:
First and foremost, you need to be alert of the governing Law lest you're taken unawares by a
traffic policeman, and yet your ignorance of the law is not a defense in Uganda Court rooms; Road
safety in Uganda is Governed by the THE TRAFFIC AND ROAD SAFETY ACT of 1970, This is Act which
consolidates the law relating to road traffic.
In Uganda, you drive on the left hand side of the road. The general speed limit on national
highways is 100km/h and 65 km/h in urban built up areas, but for otherwise indicated.
Make confident you have your local or international driving permit before you drive a car in
Uganda.
Legal provision relating to environmental population by automobiles
7. Ethical:
After independence, there were conflicting local nationalisms. The Buganda's large population,
extensive territory in the favored south, and self-proclaimed superiority created a backlash among
other Ugandan peoples. Nubians shared little sense of identification with other groups. The closely
related peoples of nearby Zaire and the Sudan soon became embroiled in civil wars in the 1960s and
1970s, drawing in ethnically related Ugandans. Today relations are relatively harmonious. However,
suspicion remains with the president believing to favor certain groups from the west of the country
over others.

44
8. Demographic:
This entry provides the distribution of the population according to age. Information is included by sex
and age group (0-14 years, 15-64 years, 65 years and over). The age structure of a population affects
a nation's key socioeconomic issues. Countries with young populations (high percentage under age
15) need to invest more in schools, while countries with older populations (high percentage ages 65
and over) need to invest more in the health sector. The age structure can also be used to help predict
potential political issues.

45
Overview of Industry,
Trade and Commerce in
the Uganda

46
Overview
Uganda is a landlocked independent republic with a democratic government which lies between the
Democratic Republic of Congo (formerly Zaire) and Kenya and forms part of the East African Region.
The capital city is Kampala. Other major towns are Jinja, Mbale, and Masaka.
The official language is English but Swahili is widely spoken. The local currency is the New Uganda
shilling. The international time zone for Uganda is Greenwich +1. The international dialing code is
+256. The only international airport in Uganda is at Entebbe, 35 km from Kampala, and the principal
airline which flies there is Sabena. As at June 1995 all nationals require visas in order to visit Uganda.
Visas are valid for one month and may be extended to a maximum of 6 months.
Malaria, tuberculosis, cholera, hepatitis A, typhoid fever, yellow fever (regional) and schistosomiasis
(bilharzia) may be contracted while travelling in Uganda. Travelers should be aware that advance
payment for medical services might be required. Prescription medicines should be carried in their
original containers together with the prescription. Vaccinations should be obtained before entering
Uganda. It is advisable to take syringes and needles when travelling to Uganda. It is difficult to obtain
mosquito repellent and contact lens solution in Uganda. Only bottled water is safe for drinking.
Trade and Commerce in the Uganda
The Ministry of Trade, Industry and cooperative represented by the Minister of Trade Industry and
Cooperatives (MTIC), Hon. Amelia Kyambadde (MP) signed a Grant Agreement with David Stanton,
the Deputy CEO TradeMark East Africa (TMEA) for support towards eliminating NTBs. The signing
ceremony was witnessed by senior officials from MTIC and representatives from the private sector.
Based on evidence from various surveys along the northern corridor, NTBs are a major contributor to
the cost of doing business in Uganda and the EAC generally. The landlocked countries such as
Uganda, Rwanda and Burundi, suffer the greatest loss from NTBs due to distance from the main ports
of Mombasa and Dar es Salaam. A poor road infrastructure, delays at border crossings and lack of
harmonized import and export standards and procedures are among the most mentioned NTBs in

47
this context. As a result, the cost of imports of one container in Uganda, for example, is more than
3.5 times higher than in Tanzania and 2.5 times higher than in Kenya.
To address the problem of NTBs the EAC established a mechanism of identification and elimination of
NTBs. As a result, National Monitoring Committees on NTBs (NMCs) were established in each
country. These mechanisms need to be strengthened to become effective.
In Uganda, the Ministry of Trade Industry and Cooperatives has already developed a national
response mechanism strategy for the elimination of NTBs. The strategy proposes various
interventions that will allow Uganda to identify and eliminate NTBs, and strengthen the coordination
mechanism with key agencies.
“The government of Uganda is taking a leading role in ensuring that all NTBs are eliminated to foster
economic growth in the country. The Ministry greatly applauds this support from TradeMark East
Africa which will strengthen the advocacy and monitoring efforts on NTBs”, said Hon. Amelia
Kyambadde, Minister of Trade Industry and Cooperatives.
“TradeMark East Africa is pleased to be a key partner with the Ministry of Trade in eliminating NTBs
in Uganda”, Said, David Stanton, TMEA Deputy CEO, Country Programmes.
Going forward, TMEA has agreed to fund implementation of this strategy. Specifically, the key
expected outcome is that relevant Ugandan organisations will remove NTBs and new ones will not be
reinstated. The key objectives to be delivered by the project include:
1. Uganda National Monitoring Committee (NMC) is effectively established and its capacity for
monitoring of NTBs enhanced
2. Increased capacity of NMC in advocacy for eliminating of NTBs at national and regional level
3. Improved mechanisms for elimination of cross-border NTBs
4. Improved NTB reporting by the private sector and expeditious coordination by MTIC for
remedial action
5. National and regional dispute resolution mechanisms established
Major project components will include setting up of an information exchange system that will lead to
improved NTB reporting by the private sector and expeditious coordination by MTIC for remedial
action, improving institutional coordination to eliminate NTBs, putting in place a communication and

48
advocacy strategy to eliminate NTBs and realigning national laws, regulations and agency structures
to eliminate NTBs.
A secretariat to manage the programme will be established at MTIC. The programme shall be
managed by the project management unit (PMU) supervised by a project manager who is a staff of
MTIC. The project management team will be supported by one full time staff and a short term
consultant.
In delivering this support TMEA aims to assist Uganda through:
• A reduction in transport and related costs along the key corridors in East Africa;
• Supporting EAC institutions to develop a comprehensive framework for regional integration;
• Supporting partner states to substantially increase the implementation of a comprehensive
framework for regional integration; and
• Engaging private sector and civil society to positively influence regional integration policies and
practices for growth in trade.
TradeMark East Africa (TMEA) Uganda country programme supports key ministries and agencies to
participate more effectively in EAC negotiation processes and implement decisions accordingly.
Further, the programme supports improvements of hard and soft infrastructure at selected borders
through establishment of one-stop border posts. Uganda Revenue Authority will be supported to
upgrade Customs IT systems to ensure faster processing of trade documents.

50
STEEPLED Analysis of India
To understand, analyze and deal with environmental factors, we can use the “STEEPLED" framework
that classifies all environmental factors in the following eight groups.
1. Social,
2. Technological,
3. Economic,
4. Environmental,
5. Political,
6. Legal,
7. Ethical and
8. Demographic
Some of the major environmental factors affecting automobile industry in each of these group are
described below.
1. Social:-
The demand of cars has been fueled by following factors:
Increasing Propensity to spend
Increasing distances between work-place and residence
Increase in percentage of working women has increased number of earning members in a family.
The average family size is 4, which makes it favorable to buy a four wheeler.
Since changed lifestyle of people, leads to increased purchase of automobiles, so automobile sector
have a large customer base to serve.
Upward migration of household income levels. 85% of cars are financed in India. Car priced below
USD 12000 accounts for nearly 80% of the market. Vehicles priced between USD 7000-12000 form
the largest segment in the passenger car market. Indian customers are highly discerning, educated
and well informed. They are price sensitive and put a lot of emphasis on value for money. reference

51
for small and compact cars. They are socially acceptable even amongst the well off. reference for fuel
efficient cars with low running cost
2.Technological:
Alternate Fuel: increasing use of CNG and LPG instead of conventional fuel has made the entry of
new kinds of vehicle in the market.
Advent of Internet: The customer can now use the Internet to place the order and expect the
manufacturer to fulfill his customized demand in the minimum time.
Electric Car: With technological advancements electrical car may emerge as a preferred option.
More and more emphasis is being laid on R & D activities carried out by companies in India.
Weighted tax deduction of up to 150% for in-house research and R & D. The Government of India is
promoting National Automotive Testing and R&D Infrastructure Project (NATRIP) to support the
growth of the autoindustry in India
Technological solutions helps in integrating the supply chain, hence reducelosses and increase
profitability. Customized solutions (designer cars, etc)can be provided with the proliferation of
technology Internet makes it easy to collect and analyse customer feedback With the entry of global
companies into the Indian market, advancedtechnologies, both in product and production process
have developed With the development or evolution of alternate fuels, hybrid cars have madeentry
into the market. Few global companies have setup R &D centers in India. Major global players like
audi, BMW,Hyundai etc have setup their manufacturing units in India.
The Indian Auto Industry is harmonizing both Safety & Emission regulations with International
Standards for sustained growth of the Industry for combating the environment and become a global
export hub.
3. Economic:-
The overall goals of economic policy in India are standard: high growth together with macroeconomic
stability and poverty reduction. Balancing these goals is the difficult part. For example, incentives
for exports, such as tax breaks, are designed to spur growth, but may adversely affect the

52
government’s fiscal deficit. As quantitative controls have receded in importance, such tax-subsidy
policies have become more significant policy components. The growth of India’s automobile sector
and the success of the industry in particular, has tended to skew policy toward the industry, with
targeted incentives being implemented or recommended.
Rising GDP consecutively for the last 5 years has led to increased purchasing power and hence the
automobiles.
Per capita Income is rising, which is affecting the segments of automobiles being ventured into.
There is cut Throat competition among many players in market.
Increasing urbanization of rural India also has given rise to increase in sales.
The concept of service in auto industry has changed into customer care now, thus en- compassing
the greater value into it.
The level of inflation Employment level per capita is right. Economic pressures on the industry are
causing automobile companies to reorganize the traditional sales process. Weighted tax deduction of
up to 150% for in-house research and R & D. Govt. has granted concessions, such as reduced interest
rates for export financing. The Indian economy has grown at 8.5% per annum. The manufacturing
sector has grown at 8-10 % per annum in the last fewyears. More than 90% of the CV purchase is on
credit. Finance availability to CV buyers has grown in scope during the last few years. The increased
enforcement of overloading restrictions has also contributed to an increase in the no. of CVs plying
on Indian roads. Several Indian firms have partnered with global players. While some have formed
joint ventures with equity participation, other also has entered into technology tie-ups.
Establishment of India as a manufacturing hub, for mini, compact cars, OEMs and for auto
components. In this section we are giving the latest information on various economics and
commercial aspects governing the Indian Automobile Sector. In the first section we have given the
Auto Policies of Government of India to facilitate sustainable development of Indian Automobile
industry.
In the second section we have given the current rates of major duties and taxes applicable to vehicles
in India. Excise Duty is essentially a manufacturing tax imposed on all vehicles manufactured in India.
The same rate is applicable to imported vehicles in the form of Counter Vailing Duty (CVD). Custom
Duty is essentially an import duty applicable on all imports. VAT has recently replaced Local Sales Tax
in India. However, VAT has not yet been adopted by all states in India.

53
In the next sub-section we have given the SIAM activities related to Union Budget. We have given the
SIAM Pre-Budget Memorandum, which was submitted to Ministry of Finance before the Union
Budget and is essentially a compilation of SIAM suggestions for changes in policy and procedure
issues related to the Budget. We have also given the Union Budget highlights which are related to the
Automotive Sector. Finally, in the Trade Policies section we have given write-ups on India’s
engagements in various Trade Negotiations, Indian Preferential Trade agreements and NAMA
negotiations in WTO and Indian Automobile Industry.The last section on other issues covers the
latest available information of India’s Trade.
4. Environmental:-
Physical infrastructure such as roads and bridges affect the use of automobiles. If there is good
availability of roads or the roads are smooththen it will affect the use of automobiles. Physical
conditions like environmental situation affect the use of automobiles. If the environment is pleasant
then it will lead to more use of vehicles. Technological solutions helps in integrating the supply chain,
hence reducelosses and increase profitability.
With the entry of global companies into the Indian market, advancedtechnologies, both in product
and production process have developed. With the development or evolution of alternate fuels,
hybrid cars have madeentry into the market. Few global companies have setup R &D centers in India.
Major global players like audi, BMW, Hyundai etc have setup their manufacturing units in India.
5. Political:-
Indian Government has changed its role from controller to facilitator with prime focus on providing
better infrastructure, growth oriented economic policies and right environment to attract
investments. This has made giant auto manufacturers enter into India and affect the competitive
environment.
The liberalization steps, such as, relaxation of the foreign exchange and equity regulations, reduction
of tariffs on imports, and refining the banking policies, has played an equally important role in
bringing the Indian Auto- motive industry to great heights. Institutionalization of automobile finance
has further paved the way to sustain a long-term high growth for the industry.

54
6. Legal:-
Legal provision relating to environmental population by automobiles. Legal provisions relating to
safety measures. Confirms the government’s intention on harmonizing the regulatory standards
with the rest of the world Indian government auto policy aimed at promoting an integrated, phased
and conductive growth of the Indian automobile industry.
Establish an international hub for manufacturing small, affordable passenger cars as well as tractor
and two wheelers. Ensure a balanced transition to open trade at minimal risk to the Indian economy
and local industry.
India has a well established and Regulatory Framework under the Ministry of Shipping, Road
Transport and Highways in which SIAM plays a very important role. All the stake holders are part of
the regulation formulation setup. The ministry issues the notifications under the Central Motor
Vehicle Rules and Motor Vehicles Act.
7. Ethical:-
The national Census of India does not recognize racial or ethnic groups within India, but recognizes
many of the tribal groups as Scheduled Castes and Tribes (see list of Scheduled Tribes in India).
Nevertheless, modern anthropologists classify Indians as belonging to one of four major ethno-racial
groups, which significantly overlap because of racial admixture between populations: Caucasoids,
Australoids, Mongoloids and Negritos. The Caucasoids are found in the north, central and south-
western regions of India and generally speak Indo-Aryan languages; Australoids are found in the
south and generally speak Dravidian languages; Mongoloids are largely confined to the Northeastern
region of the country and for the most part, speak Tibeto-Burman languages; and Negritos are found
on the Andaman Islands located on the southeastern side of the country. These speak a language
known simply as Great Andamanese, a linguistic isolate not related to any known language. And
finally, Austroasiatic languages are spoken by only tribals or Adivasis, who can be of either Australoid
or Mongoloid racial stock.

55
According to a 2009 study published by Reich et al., the modern Indian population is composed of
two genetically divergent and heterogeneous populations which mixed in ancient times (about
1,200-3,500 BC), known as Ancestral North Indians (ANI) and Ancestral South Indians (ASI). ASI
corresponds to the Dravidian-speaking population of southern India, whereas ANI corresponds to the
Indo-Aryan-speaking population of northern India.
8. Demographic:-
As per Official Census, Population of India has reached 1.21 Billion (121 Crore) in 2011 which is an
increase of 17% from the earlier figure of 103 Crore of 2001. Although population growth rate has
decreased but actual population continue to rise. As per estimates, it is expected that India would be
most populous country by 2025 overtaking china.
Gujarat Population Census Data shows that it has Total Population of 6.03 Crore which is
approximately 4.99% of total Indian Population. Literacy rate in Gujarat has seen upward trend and is
79.31% as per 2011 population census. Of that, male literacy stands at 87.23% while female literacy
is at 70.73%.
Urban Population of the State is 42.6%, which used to be at 37.4% in 2001. Rural population in the
state in 2011 fell to 57.4% from 62.6% in 2001.
Ahmadabad is the most populated District in the State, with 7.20 million people, up 11.94% from
2001, followed by Surat with 6.07 million people, up 10.07%, as per Gujarat’s Directorate of census
operations.

56
Description 2011
Female 28,901,346
Percentage of total
Population
4.99%
Literacy 79.31
Male Literacy 87.23
Female Literacy 70.73
Total Literate 41,948,677
Male Literate 23,995,500
Female Literate 17,953,177
Gujarat has become a model state for development and progress with its reach to the Global world
attracting Investment and Entrepreneurs from all across the globe. The Vibrant Gujarat Summits
unfold the development story of Gujarat. Gujarat gives a vision for a preferred place to live and to do
business through accelerated, balanced, inclusive and sustainable growth driven by robust social,
industrial and physical Infrastructure.

57
Uganda Auto Industry Business opportunities
Selling Cars: Most of the cars in Uganda are second hand and there is no sealing on car importation.
There is also room for establishing Car developed and assembly for cheaper more fuel efficient
automotives.
Importing Auto Spare Parts and providing Car repair services: Because most Uganda cars are second
hand with previous models, they need a lot of servicing and repairs
Selling Car Insurance: Insurance is generally a young industry in Uganda. On an example you could
cash in on the obligatory Third Party Insurance which the largest of Ugandan car owners never use.
Hire Services: Most of the population uses public transport in form of Taxis, Buses, Boda Boda rides
and Special lease vehicles
Car washing Bay: With most of the roads lacking tarmac, your washing bay would surely have clients
both in Dry and Rainy seasons.
Starting fuel and Car Service Station: While in Kampala you will find a good quality number of fuel
and gas stations in some remote districts of Uganda like Kotido in Karamoja region, there is still a lack
of steady fuel supply and professional car servicing.
India-Uganda Relations Political Relations. The relationship India and Uganda dates back to the
period when traders Exchanged goods in dhows across the Indian Ocean. and Eventually a number of
Indians Settled in East Africa, and many made Uganda their home. India’s free will fight encouraged
the early Ugandan activists to fight immigration and eventually achieved Freedom in 1962. India
established it political presence in Uganda in 1965. Except for the era of President Amin in early 70‟s
when nearly 55,000 Persons of Indian source (PIOs) and 5000 Indians were ineligible, relations
between the two countries have been Cordial.

58
The anti-Indian policies of Amin were upturned when the current President Yoweri Kaguta Museveni
came to power in 1986. The expelled PIOs began to drop back in Uganda. Further, President
Museveni also took steps to restore the properties seized From the PIOs. Such progressive policies
ensured that the India-Uganda relations were Restored to their heydays. The Ugandan Government
is also appreciative of the PIO Contribution to the Ugandan economy.and The Indians is Uganda are
estimated to be 22,000, of which around 15,000 are Indian passport holders, while the remainhold
Ugandan, British, Canadian and other passports.

59
Uganda India automobile industry relationship business opportunity and
growth of automotive sector
Tata Motors Limited is India's largest automobile company, with consolidated profit of INR 1, 65,654
crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the compact, smallsize car and
utility vehicle segments. It is the world's fourth biggest truck and bus manufacturer. The Tata Motors
Group‟s above 55,000 employees are guided by the vision to be ''best in the manner in which we
work, best in the products we deliver, and best in our value system and ethics.''
Tata Motors, the first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile company. Through
subsidiary and relate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain
and South Africa. Among them is Jaguar Land over, a business comprising the two iconic British
brands that was acquired in 2008. JLR supports both state of the art engineering and design facilities
and three developed plants (Solihull, Castle Bromwich &Halewood) in the UK. In 2004,Tata Motors
acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the
Korean market, while too exporting these products to several international markets.
Tata Motors is also expanding its international marks, established through exports since 1961. The
company's commercial and passenger vehicles are already being marketed in several countries in
Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has
franchisee or joint venture assembly operations
It was Tata Motors, which developed the first indigenously increment Light Commercial Vehicle,
India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger
car. Within 2 years of launch, Tata Indica became India's largest selling car in its segment. In 2005,
Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed
small -truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and
the world have been looking forward to. The Tata Nano has been subsequently launched.

60
Present Trade Relations Bilateral Investment
INDIA-UGANDA BILATERAL RELATIONS
Political Relations
India established it diplomatic presence in Uganda in 1965, but the relationship between both
countries dates back to the era when traders exchanged goods in dhows across the Indian Ocean.
Eventually a number of Indians settled in East Africa, and many made Uganda their home. India’s
freedom struggle inspired the early Ugandan activists to fight colonization and eventually achieved
freedom in 1962.
During the reign of President Amin in early 70’s, nearly 60,000 Persons of Indian Origin (PIOs) and
Indians were expelled from Uganda. However, with coming of power of the current President, HE
President Museveni, in 1986, the anti-Indian policies were reversed. Several progressive steps like
restoring properties seized from PIOs, ensured that the bilateral relations were normalized. The
relations continue to prosper till date.
High-Level Visits
From India
Hon’ble Prime Minister visited Uganda in 1997 and thereafter attended the CHOGM Summit in 2007.
Hon’ble Vice-President visited Uganda on a transit visit in July 2011. A parliamentary delegation led
by Hon’ble Speaker of Lok Sabha, Meira Kumar attended the 126th Assembly of the Inter
Parliamentary Union in April, 2012. Hon. Minister of Health & Family Welfare, Shri Ghulam Nabi
Azad, visited Kampala to chair the 22nd Executive Committee Meeting of Partners in Population
Development (PPD). Hon’ble EAM accompanied by a high level delegation visited Kampala from 17-
20 April, 2013 for bilateral meetings and to chair the Regional HoMs’ Conference of sub-Saharan
African countries.
From Uganda
HE President Museveni has visited India twice on State Visits viz. in October 1992 and in April, 2008.
He also visited New Delhi on a private visit in September, 2011. Hon. Speaker of Parliament of
Uganda led a 13-member delegation to New Delhi to attend the 7th Meeting of Women Speakers of
Parliament held in New Delhi from 3-4 October 2012. The Vice President of Uganda visited India to
attend the 9th CII-EXIM Bank Conclave in New Delhi (March 17-19, 2013).

61
In addition to the above visits, there have been several exchanges by Ministers, MPs and high ranking
officers of both sides.
Bilateral Cooperation & Assistance
India’s engagement with Uganda is at three levels viz. at the African Union (AU) level, at level of the
Regional Economic Communities (RECs) and at the bilateral level.
Moreover, India’s engagement with Uganda has been consultative, response-based and focused on
developing Ugandan capacities and human capital. Indian assistance to Uganda has been guided
mainly by the announcements made by India at the India-Africa Forum Summits in 2008 and 2011.
Following the first India-Africa Forum Summit (IAFS-I) in 2008, Uganda was nominated by the AU to
host the India-Africa Institute of Foreign Trade (IAIFT), one of the 5 institutes offered by India at the
Pan-Africa level. The institute will impart world-class training in International Business and
Management Studies, develop entrepreneurial skills and promote research in foreign trade. The
Indian Institute of Foreign Trade (IIFT) is the Indian implementing agency for the IAIFT.
At the second India-Africa Forum Summit (IAFS-II) in 2011, a Food-Processing Business Incubation
Centre was offered to be set-up in Uganda. The centre would provide support to the local
entrepreneurs by enhancing their skills in food processing and acquaint them with the latest
technology and equipment used in the industry. This would lead to creation of additional jobs for the
rural youth. Modalities for setting up the centre are being worked out by the implementing agencies
i.e. International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Hyderabad and
National Agricultural Research Laboratories, Kawanda.
At IAFS-II, India also offered, among other things, eight Material Testing Laboratories for Highways
(MTLH), one each for the 8 RECs. The Inter-Governmental Authority on Development (IGAD) and
Economic Community of Central African States (ECCAS) have decided to locate one MTLH in Uganda.
The laboratory will significantly contribute to road development within the region by providing for
material testing facilities for soil, aggregates, bitumen and cement concrete material for the road
sector. The Indian Academy of Highway Engineers (IAHE) which is the implementing agency for MTLH
will also undertake related training courses for the local engineers to ensure that the facility
continues to run smoothly and independently.

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