Bolivia

Last modification: 21 Nov 18
Introduction: 

Bolivia varies in altitude, featuring regions which are humid and tropical, and others which are cold and semiarid. The country features rugged Andes Mountains with a highland plateau (Altiplano), as well as hills, and lowland plains of the Amazon Basin.

Most of the population lives in the high altitude plains of the west between two cordillera of the Andes, known as the Altiplano. Larger settlements are found in and around the city of Santa Cruz which is situated on the eastern side of the Andes.

 

Chapter 1: Economic and business environment

Demographics

11.1 million inhabitants (est. July, 2017)

Capital

La Paz
population 812,799 (2018)

Major cities

1. Santa Cruz dela Sierra (1.36 million people)
2.Cochabamba (900,414)
3. La Paz (812,799)
4. Sucre (224,838)
5. Oruro (208,684)

est. 2018

Languages

Spanish (official) 60.7%
Quechua (official) 21.2%
Aymara (official) 14.6%

GDP

37.1 billion (US$3,342 per capita)
 

Unemployment rate

4% (2017)

Main industries

mining, smelting, electricity, petroleum, food and beverages, handicrafts, clothing, jewelry
 

Currency

Bolivian boliviano

Interest rate

2.5% (start of 2018) 

Political key info

In December 2005, the Bolivian's moved toward socialism has been led by President Evo Morales with a promise to change the country's traditional political class and empower the nation's poor, indigenous majority. The president has been choesn by his party to run again in 2019, via a still-undetermined method for him to appear on the ballot.

Inflation

2.8% (2017)

Chapter 2 : Automotive market, segments & sales

Total Car park

1.71 million vehicles (2016)

(Source: National Institutoe of Statistics INE and municipal tax administration RUAT)

In terms of passenger vehicles, approximately
30% are compact SUVs, 21.4% are motorcycles, and 18% are cars. While 92% of the passenger vehicles are for private use, the reamininag 8% are for public and official use.

 

Top 5 brands (total market)

Bolivia has approximately 185 vehicles brands, of which are dominated by those from Japan. The best-selling brands are Toyota
Suzuki, and Nissan.

Model preference top 5 (total market)

No. 1 Suzuki Vitara

Used car market/renewal cycle

With an average age of 40 years, Bolivia has a larger number of highly polluting and dangerous second-hand vehicles. Approximatey 60% of the country's fleet is more than 10 years old.

In 2016, about 25.4% of Bolivia's vehicles were five years or less (435,175 units). Reprsenting 17%, the second largest category was those which were 15-20 years old (290,795 units).

Collective Transport

Approximately 80% of public transport vehicles are 17-44 years old, according to studies carried out by the La Paz municipality. Many of them are buses (30-60 passenger capacity) owned by union members which have yet to renovate thier vehicles. Many of them actually operate on liquified gas - for domestic use - which have been illegal connected in order to avoid tecnical controls.

 

Chapter 4: Taxation & legislation

This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!

Chapter 5: Car policies

This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!

Chapter 6: Funding methods

 

The financial market in Bolivia depends on supply and demand with banks offering different interest rates and payment deadline structures. In general, a borrower would qualify for 80% financing on a vehicle which is priced very close to the annual revenue (salary for individuals) reported during credit evaluation.

Considering a small loan for individuals, interest could run from 9.9%-17.6% depending on the profile of the borrower and the asset needing to be financed. Better rates can be obtained on commercial loans. 

Among the main banks in Bolivia are Banco Bisa, Banco de Crédito, Banco Económico, Banco Fassil, Banco FIE, Banco Ganadero, Banco Mercantil Santa Cruz, Banco Nacional de Bolivia, Prodem, Banco Sol, and Banco Unión.

Chapter 7: Fuel

82.9% gasoline
13.5% diesel
3.6% natural gas

Average gasoline price per liter: US$0.54
World average: US$1.16
(est. November 5, 2018)

Bolivia has one of the lowest prices of gasoline in Latin America. Only Venezuela and Ecuador are cheaper. 
 


Diesel, just under US$1.00 per liter

(est. 2016)

Chapter 8 : TCO components

This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!

Chapter 9: Safety, insurance and telematics

Safety

The transit unit of the police department
is in charge of mechanical vehicle inspections (ITV) which are mandatory every year. In accordance with the local traffic code and natoinal regulations, the visual inspection last only a few mintues, and involves checking the lighting, electrical and braking systems, and other accessories.

Insurance

Establisehd in 2018, the SOAT mandatory traffic accident insurance covers some 42% of the country's automotive fleet as of October. Approximately 760,000 policies, according to data from state firm UNIVida.

Chapter 10: Environment

In terms of electric vehicles, experts believe that this will not occur in the country for at least another five years and the main barrier their high cost. According to the director of the country's energy foundation, Miguel Ángel Fernández, the country lacks policies aimed at encourage electric vehicles. Moreover, importers do not have much knowledge or interest in the market. This pertains both to the passenger vehicle marekt and the collective transport vehicles such as public buses. 

According to the Ministry of Environment and Water, it was reported in 2017 that the vehicle fleet was responsible for 70% of the country's air pollution, followed by industries and forest fires or the burning of pastures.

Chapter 11: Mobility

Uber in Bolivia first started in the city of Santa Cruz in October 2016. And, it has been present in the federal capital of La Paz since February 2017. Buses are still widely used and the entire fleet - mainly outside La Paz - is very old.

Chapter 12: Key trends to watch