Factors Influencing the Automobile Industry

Factors that affect Automobile Industry Anti pollution issues Alternatives cars such as electric cars Shortage of raw materials Increasing price and fluctuating prices Increase in oil prices Increase in energy cost

Technological Factors Emphasis on R&D Innovation

Hybrid cars Low emission / Fuel efficient

Increased regulation of technological change Use of safety technology

Accelerating the pace of change Better technology at a lower price Product life cycle reduced

Ecological Factors Anti pollution issues Literacy Levels Population growth Income level

Socio Cultural Factors Lifestyles and preference of people that

impact their choice on the types of automobiles

Social Norm that impact the decision to own and use automobiles compared to other means of transport

Political Factors Political climate in different countries

producing and purchasing automobile regarding policies on import, export and manufacturing of automobiles and components

Stability of the government Taxation policies

Economic Factors Consumer spending behaviors Level of economic activities that affect

the need for use of automobiles Infrastructure