Factors Influencing the Automobile Industry

1. Factors Influencing the Automobile Industry

2. 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

3. 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

4. Ecological Factors • Anti pollution issues • Literacy Levels • Population growth • Income level

5. 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

6. 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

7. Economic Factors • Consumer spending behaviors • Level of economic activities that affect the need for use of automobiles • Infrastructure