PEST Analysis examines the various external factors like political, economic, social,

technological (PEST) which impacts its business along with legal & environmental factors.

PEST analysis is a framework which is imperative for company as it helps to understand market
dynamics & improve its business continuously.

Political Factor:

● Political factors that affect the sale and revenue of automobile company are rules and
regulations formed by the government.
● The policies which are laid by the government for the automobile sector need to be
followed .
● Taxation and labor laws, affect the overall revenue of the company if the taxes increase
then the company has to increase its product price, and there is also an increase in labor
laws by the government.
● According to the target market, manufacturing small cars so that it can target
economically low-income consumers.
● need to abide by the rules and regulations while exporting or importing its counterparts
from the international market.

Economic Factor:

● The economy of a country affects the sales and revenue of an automobile company .
● As the economy of India currently, is facing a downfall so the automobile sector is facing
an economic crisis.
● An increase in interest and inflation rate will result in a negative impact on the growth if
the company.
● The oil price is a major factor in determining the sale of the company, as the oil prices
are rising people are not willing to buy the cars and thus the sale decreases.
● The manufacturing sector has grown by around 10 percent per annum in the last few
years. But due to the economic slowdown this year, the manufacturing sector has
curtailed .

Social Factors:

● We believe in serving enhanced customer requirements, and perceived social value.

● As the car easily attract people it can be used in welfare camp,rally and awareness
camp,
● The car can be used for education purpose in schools and colleges,
● Can adopte energy-saving technologies,
● Can take care of road safety,
 ● setting up driving schools to assure every person learns the right approach and to
minimize the risk of accident
● Can use for tourism and attract tourist that increase marketing and business.
● Can extends stereo systems, carpets, body covers, and many other car care products
for customers.

Technological Factors:

● The automobile sector always needs to be updated in technologies to consider driving

safety needs and innovations in the model.
● The company invests a lot in research and development to improve engine features.
● We should involve in manufacturing of fuel-efficient and small car engine.
● Can be modified as electric vehicle.
● developing LPG/CNG/Hybrid system for the MPI engine to use as the alternate fuel
technology.
● Can include a virtual design review to its Research and development department to
assure the virtual validation to reduce the cycle time and development cost of
manufacturing.