Automobile Industry Pest Analysis Essay

1. Political Factors A) Environment Concerns: Leading to the quest for eco-friendly cars, people would prone to buy hybrid or even pure electric cars in the future. B) Government Regulations: Limitation on high emission car purchase, and the restrictive passage of autos in downtown area, as well as the limitation on license plate (number plate) in huge cosmopolitans. C) Some pioneering states in the US have started to set the rules to govern robotized motoring (autonomous driving). 2. Economic Factors. A) Economic growth has shifted from traditional strong western countries (US, West Europe, specifically) to other parts of the world, especially, East and Southeast Asia, Africa, and South America. B) Auto Markets in developed countries are saturated: High rate of auto owning, stable population and household quantity. The auto market there is typically of substitution of old car with new ones. C) Public Transportation Infrastructure including high speed rail network, intercity light-rail network, etc, will be perfected in developing countries. D) Fuel cost is on the wing, driving demand for mini-car, A-Class, Compact car. 3. Social Factors. A) In developing countries, owning a car is not only means of transportation but also a need of social status. B) People’s awareness of environment protection is growing. 4. Technological Factors. A) Technology for Electric Engine is maturing, and battery capacity is increasing. Some countries have started to establish infrastructure for electric charging stations. B) The aim to eliminate casualty caused by transportation accident will be met by the adoption and perfection of automatic pilot (unmanned driving). Google has started the trial operation of a fleet of autonomous driving cars. California and Nevada have set rules to govern robotized monitoring. Trend & Segment of Profitable Market for Automobile: 1. Smaller cars such as Mini-cars, A-Class passenger cars, and compact cars will have larger shares of market. 2. Eco-friendly cars and high-tech cars with auto-pilot function will lead the market. 3. Markets with high growth potential will be in developing countries or the so-called emerging economies. Supporting Data: GDP Growth Rate Index: (Source: World Bank) Country Name| 2008| 2009| 2010| 2011| Macao SAR, China| 3.3 | 1.7 | 27.0 | 20.7 | Qatar| 17.7 | 12.0 | 16.6 | 18.8 | Mongolia| 8.9 | -1.3 | 6.4 | 17.5 | Turkmenistan| 14.7 | 6.1 | 9.2 | 14.7 | Ghana| 8.4 | 4.0 | 8.0 | 14.4 | Panama| 10.1 | 3.9 | 7.6 | 10.6 | Timor-Leste| 14.6 | 12.8 | 9.5 | 10.6 | Iraq| 9.5 | 4.2 | 0.8 | 9.9 | Liberia| 10.5 | 13.8 | 10.9 | 9.4 | Zimbabwe| -17.7 | 6.0 | 9.6 | 9.4 | China| 9.6 | 9.2 | 10.4 | 9.3 | Solomon Islands| 7.3 | -1.2 | 7.0 | 9.0 | Papua New Guinea| 6.7 | 5.5 | 8.0 | 9.0 | Argentina| 6.8 | 0.9 | 9.2 | 8.9 | Eritrea| -9.8 | 3.9 | 2.2 | 8.7 | Turkey| 0.7 | -4.8 | 9.2 | 8.5 | East Asia & Pacific (developing only)| 8.5 | 7.5 | 9.7 | 8.3 | Uzbekistan| 9.0 | 8.1 | 8.5 | 8.3 | Estonia| -4.2 | -14.1 | 3.3 | 8.3 | Rwanda| 11.2 | 6.2 | 7.2 | 8.3 | Sri Lanka| 6.0 | 3.5 | 8.0 | 8.3 | Kuwait| 5.0 | -5.2 | 3.4 | 8.2 | Lao PDR| 7.8 | 7.5 | 8.5 | 8.0 | Equatorial Guinea| 10.7 | 4.6 | -0.5 | 7.8 | Ecuador| 7.2 | 0.4 | 3.6 | 7.8 | Kazakhstan| 3.3 | 1.2 | 7.3 | 7.5 | Maldives| 12.2 | -4.7 | 5.7 | 7.5 | Tajikistan| 21.2 | 3.9 | 6.5 | 7.4 | Nigeria| 6.0 | 7.0 | 8.0 | 7.4 | Ethiopia| 10.8 | 8.8 | 9.9 | 7.3 | Mozambique| 6.8 | 6.3 | 6.8 | 7.1 | Cambodia| 6.7 | 0.1 | 6.0 | 7.1 | Georgia| 2.3 | -3.8 | 6.3 | 7.0 | Congo, Dem. Rep.| 6.2 | 2.8 | 7.2 | 6.9 | India| 3.9 | 8.2 | 9.6 | 6.9 | Paraguay| 4.2 | -3.5 | 14.2 | 6.9 | Peru| 9.8 | 0.8 | 8.8 | 6.8 | Saudi Arabia| 4.2 | 0.1 | 4.6 | 6.8 | Bangladesh| 6.2 | 5.7 | 6.1 | 6.7 | Uganda| 8.7 | 7.2 | 5.9 | 6.7 | Upper middle income| 6.1 | 2.0 | 7.8 | 6.6 | South Asia| 3.9 | 7.4 | 8.6 | 6.5 | Zambia| 5.7 | 6.4 | 7.6 | 6.5 | Indonesia| 6.0 | 4.6 | 6.2 | 6.5 | Tanzania| 7.4 | 6.0 | 7.0 | 6.4 | Moldova| 7.8 | -6.0 | 7.1 | 6.4 | Middle income| 5.7 | 2.7 | 7.7 | 6.4 | Low & middle income| 5.7 | 2.7 | 7.7 | 6.4 | Sierra Leone| 5.5 | 3.2 | 4.9 | 6.0 | Chile| 3.7 | -1.0 | 6.1 | 6.0 | Low income| 5.7 | 4.7 | 6.1 | 6.0 | Colombia| 3.5 | 1.7 | 4.0 | 5.9 | Vietnam| 6.3 | 5.3 | 6.8 | 5.9 | Lithuania| 2.9 | -14.7 | 1.3 | 5.9 | Palau| -6.1 | -4.6 | 0.3 | 5.8 | Lesotho| 5.4 | 2.9 | 5.6 | 5.8 | Europe & Central Asia (developing only)| 3.9 | -6.0 | 5.8 | 5.8 | Afghanistan| 3.6 | 21.0 | 8.4 | 5.7 | Botswana| 2.9 | -4.8 | 7.0 | 5.7 | Uruguay| 7.2 | 2.4 | 8.9 | 5.7 | Lower middle income| 4.6 | 5.2 | 7.3 | 5.7 | Kyrgyz Republic| 8.4 | 2.9 | -0.5 | 5.7 | Haiti| 0.8 | 2.9 | -5.4 | 5.6 | Bhutan| 4.7 | 6.7 | 11.8 | 5.6 | High income: nonOECD| 2.7 | -1.3 | 7.3 | 5.6 | Oman| 12.8 | 1.1 | 4.0 | 5.5 | Latvia| -4.2 | -18.0 | -0.3 | 5.5 | Among the countries with a REAL GDP growth rate on or above 5.5%, most of the countries are in South America, Africa, and Eastern Europe. GDP Growth Rate Map: (Source: World Bank). The darker the color, the higher the GDP growth rate of the country. We can see that major economic growth are all out of the traditional western countries. Recently, countries buying most cars are: (Source: http://visual.ly/2012-global-car-sales-statistics).