Cost Comparison

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120x90-vehicle.jpgThe key marketing challenge is understanding exactly where to sell BUVs.  Certain women, in specific regions of selected countries will buy BUVs. Surprising to some, women control the family finances in many developing countries. In some markets, outside parties offer financing options to women. A key enabler for women (and a good example of a tool developed specifically for the Third World) is the micro-loan. Micro-loans provide women with seed-capital (usually less than $500) to start a micro-business. The World Bank underwrites the loans because they hope that these small businesses will grow, employ people, and help sustain the economy. Micro-loans can help women purchase Basic Utility Vehicles to expand their business.

 

System Description

Average U.S. Car

(US$)

% Total Cost

U.S. Economy Car

(US$)

3rd World Car*

(US$)

BUV Target

(US$)

Engine 1810 16% 1,152 823 350
Body and Structural 1850 17% 1,177 841 230
Drivetrain 1600 15% 1,018 727 225
Electronics & Electrical 1490 14% 948 677 0
Interior 1200 11% 764 545 25
Climate Control / Engine Cooling 650 6% 414 295 0
Suspension 400 4% 255 182 100
Steering 375 3% 239 170 75
Braking 325 3% 207 148 75
Pass. Restraints 300 3% 191 136 20
Fuel System 300 3% 191 136 0**
Wheels and Tires 300 3% 191 136 140
Body Glass 200 2% 127 91 0
Exhaust 200 2% 127 91 0**
Total Component Cost $11,000 100% $7,000 $5,000 $1240
Retail Price (US$) before VAT $20,000 $8,500 $7,000 $1998

 

*i.e. Worldstar by World Transport Authority, or Celta by GM Brazil

** included with engine