The Auto Industry Forecasting
BUS620: Managerial Marketing
Dr. Uchenna Nwabueze
Auto Industry Forecasting
A PESTEL analysis is an acronym that stands for Political, Economic, Social, Technical, Environment, and Legislative areas of business. There are many different elements and influences on the Auto industry. The automobile industry has become a worldwide industry and is the sixth largest economy in the world (Kierzkowski, 2011). Kierzkiwski (2012) stated almost 70 million cars are produced in the world annually, providing employment, directly or indirectly, to over 100 million people in approximately 100 countries. The global auto component industry is a highly diversified sector that involves engine and auto component manufacturers, including aftermarket parts manufacturers, suppliers, dealers, and retailers (PR, 2012).The global automotive sector will change as well as increase in quantity of vehicles in use. The number of cars will increase in the world from the present 646 million to 2906 million by 2050 (Kierzkowski, 2011). The biggest factor for the industry strength is the demand and grows projected by 2050. Political factors such as government regulations, import/export taxes, and tariffs can affect the industry as whole or specific companies depending on the acting government it can be a negative for the industry or positive. Different political factors in different countries can effects revenues, liabilities can create or remove barriers for the specific product for specific companies. The manufacturing of auto components is gradually shifting toward Asian countries such as China, India, and others because of higher market potential and the low-cost manufacturing options available (PR, 2012). The People's Republic of China (PRC) government has had to establish a range of different tools and levers to meet regulatory goals at the same time as it has retained old levers of control(Yeo & Pearson,...
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