PESTEL Analysis of Automobile Industry
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PESTEL Analysis of Automobile Industry

PEST Analysis of Automobile Industry

  • In most countries, governments have issued regulations regarding the production of automobile parts to ensure the safety of passengers.


The administrations are also keen to restrict the ample usage of fossil fuels which create more pollutants.

  • The income of people from stable and emerging economic zones are increasing day by day.


Many countries have imposed taxes on luxury items which have increased their price, and hence a specific section of buyers may not choose to buy one.

  • Cars are not only vehicles but are fashion statements.


Population distribution of a country also impacts the sales of cars.

  • The automobile industry is hugely dependent on innovative technology to ensure the safety of the people.


The companies need to concentrate on the reduction of emissions.

  • As emission from the vehicle is a concern for the environmentalists and government.


The governments of the countries are more willing to take up environmental policies to decrease the pollution level.

  • Many countries have strict laws to decrease the number of vehicles on the street, which can help them to lower the air pollution level.


During the forensic test of an accident, if it is proved that there was any problem with the faulty parts or airbags, the company may have to face legal proceedings.

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publish time: 2021-07-02
Lisa Anderson

The PESTEL analysis of the automobile industry show how those factors can work on the development of this industry. It helps companies to make strategies to resolve the potential harms. As the lifestyle and economic conditions of the countries are changing, the automobile industry has the potential to see rapid growth in the future. However, there are safety and environmental concerns which they need to take care of to sustain stability. The PESTEL analysis of the automobile industry shows that the automobile industry should successfully cushion its potential threats. Only then can they expand their business in both developed and developing countries.

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