Pestel analysis on motor industry

With more thanemployees, Toyota is a leading player in the global automotive industry.

Pestel analysis on motor industry

PEST is used as a tool; it concentrates on the Political, Economical, Social and Technological factors of the business or organization.

Honda Motor Co., Ltd. PESTEL / PEST & Environment Analysis[Strategy]

The results of the PEST analysis are very useful for gathering the different benefits and opportunities the business itself has. Political factors of the car industry: Political factors highlight the main law and regulations, security measures and restrictions that can apply to the entire industry itself.

The laws and regulations are normally brought up around the environmental measures that are meant to be fulfilled by any automobile industry. Due to the different political decisions the car manufacturers had to take certain precautions and care of the environmental issues when manufacturing their automobiles.

Hybrid vehicles have a great demand and more support from the government due to its eco friendly emissions. All newly produced cars must comply and stick to EU vehicle emission standards and regulations, known as Euro Standards. This model achieves euro E5 standard with tailpipe emissions of NOx 0.

Hill, Economical factors: Economic factors are different and are mostly related to the exchange rates, global economical growth and the certain business settings predominating in the industry. Because of all this, a high amount of revenue restrained even though demand was less than supply.

Understanding the tool

In terms of infrastructural developments the automobile industry is one of the most demanding. A major factor that affects the external price elasticity comes from the oil dependency. High petrol prices does not always bring a fall in demand for vehicles because now more cars are more fuel efficient than an older offering the buyer the chance to save money.

New cars are coming with more fuel efficiently than older, it mainly offers buyers to save money. The automobile industry is one of the sectors whose affluence seems to infuse nearly every part of the economy. The motor trade always changes in demand and productions have sizable effects, not just on the industry but on the many different supply chain of business and economic activity in areas where care production is concerned.

The automobile sector is under a lot of pressure. The industry has always focused on commitment and improving the productivity but due to different exchange rates E.

Social factors are a bit difficult to find throughout the automobile industry, it mostly includes changes in cultures and demographics globally, apart from the changes in the buying pattern and capacity of the customer itself.

Social factors on the automobile industry are: If a certain person has a large family they will go for a bigger more spacious and safe car to suit the family.


There are customers that are more into sporty, luxurious and stylish cars that they feel more comfortable in. Different businesses have different ways of running their transportations but most are significantly reliant on their own transportations and services.

Technology of the automobile industry is improving in many different ways. Now, most leading vehicle developers are creating vehicles that alternate on different fuel systems. Toyota has petrol- electric hybrid motoring cars. Another example is Volkswagen, it has fuel cell and hybrid Tourans, added with a synthetic-fuelled Skoda Fabia, and BMW offers a 7 series capable of running on hydrogen and petrol.

There is even a Lotus Elise sports car that runs on natural gas. This will be met by the adoption and perfection of automatic pilot.

Google has started the trail operations for a fleet of autonomous driving cars.

Political Factors that Impact Ford Motor Company Each external factor presents an opportunity or threat that the business must address through strategic action. These issues are a direct determinant of the organizational development trajectory of Ford.

California and Nevada have set rules to govern robotized monitoring.A PESTEL Analysis of the automotive/automobile industry The global automobile industry is a multi billion industry with several large brands competing for market share. Since its foundation in the 19th century, this sector has grown to become an important part of the world economy in terms of revenue.

PEST Analysis on the automobile industry | Valery Balan -

PESTEL/ PESTLE/ PEST Analysis of hospitality industry Traditionally PESTEL analysis was known as the PEST analysis and only in the modern times did the use of the word PESTLE came into being.

Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days.

Pestel analysis on motor industry

PEST or PESTEL analysis is a simple and effective tool used in situation analysis to identify the key external (macro environment level) forces that might affect an organization. Ford industry is continueing the connections with leading organizations like Suzuki and Isuzu Motors Company to establish exceptional automobiles and in the part to technological attitude for vehiclle industry it is carrying on relations with Toyota and Honda motor organizations.

Ford Motor Company’s PESTEL/PESTLE analysis shows that the firm has significant potential for improvement, based on opportunities in the remote or macro-environment of the business.. Political Factors Affecting Ford Motor Company’s Business.

Ford’s business must address the political aspect as an external influence. Governmental impact on firms’ remote or macro-environment is. SWOT and PESTEL analysis of the automobile industry. Print Reference this.

Disclaimer: External Analysis PESTEL. lack of infrastructure such as roads hence people prefer motor cycles, public transport, cycling as substitute to cars, decline in economy will force people to consider alternative of buy cars.

Toyota PESTEL/PESTLE Analysis & Recommendations - Panmore Institute