1

PESTL Analysis Of India

Automobile Industry

Global Marketing

2

Developing Country with 1.21 billion population

Protectionist Economic Policy

2nd Largest Two Wheeler Market

13th largest Commercial Vehicle Market

World’s largest three wheeler market

India

3

Aimed at promoting an integrated, phased growth of the Indian automotive industry.

No minimum criteria for foreign investment

Assist development of vehicles propelled by alternate energy sources

Political Environment

4

Effective Judicial System

Political stability

Allow tax deduction for

R&D activities

Political Environment

5

Lack of transporta

tion infrastruct

ure

Wide Financing

Low interest

rates

Mature Market

Economic Environment

6

Economy growth 8.5%

Manufacturing sector growth 8-

10%

Overloading

Restriction

Established Manufactur

ing Hub

Economic Environment

7

Upward migration in income

levels

Small cars

Fuel Efficiency

Growth in urbanizat

ion

Social Environment

8

With the entry of global companies into the Indian market, advanced technologies ,both in product and production processes have developed.

Evolution of alternate fuels, hybrid cars have made entry into the market.

Few global companies have setup their R&D centre in India.

Technological Environment

9

Major global players like Audi, BMW, Hyundai etc. have setup their manufacturing units in India

Government initiatives regarding tax rebates has led to global players setting up their R&D centre in India

Technological Environment

10

Marketer’s

Heaven

120 to 159

billion USD

Investment

13% expected growth for

future decade

Automobile Industry Future

11

Indians are patriotic, they prefer Indian cars

Its difficult to enter in global mature market

Extensive R&D required

Aggressive Promotional Campaign

Joint Ventures, Long term contractual partnersDistribution Network

Strategic Issues

12

“Mery des ki car” like campaign to gain approval

Give a strong reason to chose you

Collaborations with oil co. & petrol distributors

Racing competitions, Automobile exhibitions

Celebrities & sportsmen advertising campaign

Develop alliances with mechanical garages & distributors

Suggestions