Insights into the Automotive Realm: A Detailed PESTLE Analysis

Executive Summary

The automobile industries are focused in this paper. The impact on this automobile industry is focused on in this part for a better understanding. A general pestle analysis is presented in this paper for a better understanding of the automobile industry here. The impact of those pestle analysis s defined here. Political, economic, social, legal, technological and environmental aspect is described here properly. A detailed analysis regarding the pestle analysis for the industry is performed here possibly for a better understanding. Several challenges are presented in this paper according to the automobile industry here. The characteristics of the automobile industry are also described in this paper easily.

Introduction

Automobile industries are generally manufacturing or specialized in motor vehicles. The automobile industry is the largest producer for the country to gain a good economic value. These automobile industries are specialized in producing and manufacturing the high duty working vehicles from cars to trucks. They are generally focused on manufacturing and designing the parts of cars and engine manufacturing. A large impact on other industries and companies are seen in this paper. Impact and challenges on the automobile industry is focused in this paper. Pestle report is to be presented in this case for a better understanding of the automobile industries. A low emission and pollution controlled vehicle is being required to be produced by the industry. A financial, economical and other performance is to be analyzed in this paper for a better understanding of the impact on the automobile industry.

This report is designed to focus on the challenges that the automobile industry is facing in this era. A Pestle analysis will discuss the political, environmental, social, technological, logical and environmental factors available. This will be helping in better understanding the impact of this one in other industries also. An analysis for recent years will be presented for a better understanding of the impacts on automobile industries. Proper analysis of the automobile industry is done here for its better understanding and for an informative approach. A piece of proper information regarding the products, goods, raw materials and others regarding this industry is properly understood in this paper.

Automobile industries

PESTLE

Political

The export and import regimes are being influenced by the different taxes and tariffs that are generally imposed on them. Fewer consumers can be seen to avail the automobiles when the government imposed any kind of tax on them. Generally the investment climates formed by the government are seen to be rising or falling in the case of these automobile industries. If the government is able to provide incentives and encourage the company then a number of investors will be interested in the investment purpose regarding this automobile organization. More high-quality products can be possible here with the good consumption of resources available (Racz, 2018). Various rules and regulations in this industry affects them a lot. Vehicles that have a fuel efficiency, produce less pollution and others can pass the governmental policies for a good profit. Generally the rules and regulations of the government are affecting the revenue generated in the automobile industries.

Economical

In case of low economic conditions in the country the sale and productions are seen to be in a low number. There is a little difference in the development and the developed industries for the selling of vehicles. In developed countries the demand for costly cars is high rather than the developing where low priced vehicles are having more demand. Economical conditions are directly affecting the profitability of the industry here. Trade wars among different countries are also affecting the economic value of their own automobile industry such as can be seen in the case of the USA and China (Asimellis, 2018). But it is a thing to be reminded that the automobile industry has a great contribution to the economy of the country and can be observed by the consumption as well as investment process. In several cases the automobile industries have to focus on the traditional methods and are generally being forced by the economic conditions available in the country.

Social

These are generally based on the people's demand regarding the production and sale of the goods. The vehicle industry has to go according to people's preferences and several strategies are formed to adapt to a new demanded environment. Age differences and a properly targeted audience are to be met by the automotive industry here. Brand and model names are being affected as well as can be raised due to the need of those new populations. Various kinds of consumers are present on those who believe in cheap and best material while others believe in the latest trends and class thus the automobile industry has to be operating in such a sector where a well-targeted audience is present. Moreover owning a car for business purposes is also seen in some of the conditions that are a helpful one for these automobile industries (Jiang, 2018). People moving from ownership to a business purpose also brought a good phase for them.

Technology

Technology-based materials are highly appreciated and is a demand for a large population nowadays. New technology such as the application of AI, self-driven automated vehicles, and various other technologies can be a helpful one for the business and selling purpose of the automobile industry. Various of the safety measures that are introduced in the vehicles like the USA or China are generally an attractive point for the consumers. In the upcoming future it is to be said that technology and innovation will be the required part for the automobile industry and the people. Thus Toyota, Ford, Hyundai and various other organizations are working hard regarding the technological aspect and for a good profit for them (Aithal, P.S., 2017). This technological aspect has a good impact on people as well as on the industry but the cost is a challenging part that organizations have to spend for other manufacturing and production (Notesmatic.com, 2020).

Legal

Legal and policies are present in various countries for their automotive industry and is to be followed properly by the industries. Some of the policies are there which restricts the production of old cars because that can lead to environmental problems. Vehicles that are manufactured and passed overseas have to pass certain rules and regulations and also affects the production of those vehicles. Security-related to the safety and security regarding the vehicles are also to be seen by the laws passed here. Moreover tax law, vehicle laws and various other laws are also present that can be an impactful one regarding these automobile industries. Thus such kinds of rules and laws are present that can limit the production and market of those automobile industries. The challenging part is the patent and copywriting regarding the brand and name for the vehicles. Moreover new models are available for the customers due to cutting the taxes to low one and applying fewer regulations (www.bestessayservices, 2020).

Environmental

The environmental aspect is one of the concerns regarding the automobile industry. Vehicles with less pollution and that can create less degradation to the environment are nowadays a preference by the government as well as to the people. The use of fossil fuel and those that can be dangerous to the environment are required to be banned by the government rules and regulations in automobile industries. Thus electric and battery oriented vehicles in the automobile industries are highly required nowadays. Generally, the eco-friendly vehicles orientations and manufacturing are highly processed in these industries. Environmental friendliness is an important part of the manufacturing and production part of the automobile industry here. Pollution tests and other passing tests are nowadays becoming stricter for other vehicles available. Thus the industries also have to focus on these environmental aspects present in the organization (Ir.nmu, 2020).

Conclusion

Thus it can be concluded that the automobile industries contribute in high amounts in the economic condition of the country. PESTEL analysis of the automobile industry is being seen in this page. This can be understood in this paper that the political, economic, social, legal and environmental aspects are easily demonstrated in this paper. The effect and impact of these pestles are defined here in this paper for better understanding. Political, social, economic, technological, legal and environmental impact on the automobile industry is defined in this paper easily. Financial and economic analysis is being done here properly so that proper analysis can proceed here properly. Analysis of economic form is being processed in this paper. The challenges and characteristics of the automobile industry are defined in this paper. Technology is one of the important aspects that is required in the automobile industry so that the advantages and disadvantages of their manufacturing and production can be made possible.

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Reference List

Racz, L., Fozer, D., Nagy, T., Toth, A.J., Haaz, E., Tarjani, J.A., Andre, A., Selim, A., Valentinyi, N., Mika, L.T. and Deak, C., 2018. Extensive comparison of biodiesel production alternatives with life cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and Environmental Policy, 20(9), pp.2013-2024.

Asimellis, G., Michos, N., Fasaki, I. and Kompitsas, M., 2018. Platinum group metals bulk analysis in automobile catalyst recycling material by laser-induced breakdown spectroscopy. Spectrochimica Acta Part B: Atomic Spectroscopy, 63(11), pp.1338-1343.

Jiang, J., Blank, A., Maier, F., Bharthepudi, A. and Kumar, P., 2015, August. Financial analysis and comparison of compact electric and gasoline cars. In 2015 Portland International Conference on Management of Engineering and Technology (PICMET) (pp. 511-518). IEEE.

Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management Scholarly Research. International Journal of Case Studies in Business, IT and Education (IJCSBE), 1(1), pp.1-13.