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. Due to the large size of the auto industry, it’s growth and revenue are impacted by several forces. The recent financial crisis had hit this sector really hard. However, since the global recession has passed, the sales of automotives are again back on track. Apart from the manufacturing of vehicles globally, this sector is also involved in the marketing and sales of automotives. During the recent years, the Asian markets have proved highly lucrative for the automotive brands. China has particularly grown to become the world’s largest market for vehicles. In the 21st century technology and innovation have become the main basis of differentiation for the vehicle manufacturers. Apart from it, the focus is on fuel efficiency and environment friendliness. The pressure on the industry with regards to pollution control and carbon footprint has gotten high. All the major players are trying to bring more fuel efficient and low emission vehicles to the markets. The sales of electric vehicles that are emission free, is also catching up. Presented below is a PESTEL Analysis of the automotive industry that shows how the political, economic and other factors impact this industry.