Pestle Analysis on Automotive industry in UK

[Name of Writer]
[Name of University]
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Table of Contents
1. Introduction..................................................................................................................................2
2. Political factors............................................................................................................................3
3. Economical factor........................................................................................................................3
4. Social factors...............................................................................................................................4
5. Technological factor....................................................................................................................5
6. Legal factor..................................................................................................................................6
7. Environmental factor...................................................................................................................6
8. Conclusion...................................................................................................................................7
References........................................................................................................................................7
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1. Introduction
The basis of this paper is to define Pestle analysis of the automotive industry in the UK.
The advent of the automobile has been more than 15 years of this economic regime. Pestle
analysis of an automobile industry comprises various components such as cars, bikes, public
transport, and vehicles. This industry's revenue is considered the world’s largest for earning
substantial profit gains (Guno, 2021). Car and vehicles have been an essential need of nowadays
living. They are a better source which serves as a means of transportation for people to travel
from one place to another. No doubt, they have added value to the living style of people. The
paper will address its political, economic and environmental aspects by explaining the critical
point of the industry. However, owners of automotive industries have strived hard to maintain
strategical implications of rules and regulatory firms. To persuade powerful performances, it is
required for a company to maintain effective strategies for evaluating change. Strategic analysis
concerning technological, legal, environmental are all associated by the mode of Pestle form
linked with the macro environment of industry development.

2. Political factors
Driving motor vehicles pertained to be dangerous as it fulfils individuals' requirements
and needs, which is why more and more people aimed to buy their convenience for being
comfortable. Reckless driving due to stress and anxiety are prone to be more dangerous and
uncomfortable due to the government has set out safety regulations that revolve around the
automotive industry. The regulations enforce merely on manufacturing seat belts for ensuring the
safety of passengers. The added requirements in regulatory reforms do not make other
automotive to stand in the market. Most of the time, there are no aspects that highlight the
industry's growing concerns in response to their regulatory aspects (Gohoungodji et al., 2020).
The emission policies have become a problem by introducing new carbon formulation by
addressing public concerns. Most of the time, there comes a change in trade policy that recurs
automotive to pertain sense of discomfort. However, changes in trade fees and fluctuation in the
pricing may cost issues for the public because it ultimately manages to increase car prices. The
kind of pricing fluctuation will have lowered the trust of people in automotive industry
manufacturers. Trade liberalisation has spurred the development of international trade policy that
stimulated automobile export. In another case, the automotive industry demanded safe and secure
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roads from the government that influenced political ideologies. Most government officials are
working hard to show their interest in carbon emission into the atmosphere (Chicu, 2020). Once
they have been introduced to some political factors, they are being incurred to enforce political
legalities. Additional increments in tax regimes may influence the higher increase in import and
export of automobiles. When there is an increase in the tax of automobiles by which fewer
customers are willing to pay such taxes, that destroys the country's reputation. It is required for
officials to maintain the investment climate created by the government to determine the growth
of an industry. If the government has placed growth of an industry, then there will be more
increase in automobiles.

3. Economic factor
The pandemic of COVID-19 has imposed worldwide lockdown by shutting down
businesses. The pandemic has caused a huge level of uncertainty in the economic environment. It
becomes necessary for people to wear masks and maintain social distancing from one another.
The threat of virus transmission has disturbed almost every business, especially the automotive
industry. Notably, a higher rate of recession, unemployment rates and lower buying power can
cause decrease sales of automotive companies. Countries such as Malaysia, China, India, Brazil,
Singapore, and Mexico have managed to serve their automobiles in two ways. Firstly, they are
empowered on enforcing cheap labour and lower the cost of production (Chen, 2020). Secondly,
they are processing to the enforced vast consumer market with a higher aspect of growth
potential. Some multinational automotive brands have started to relocate their production and
manufacturing units in Asian countries to exploit growth opportunities. Economic growth is
perceived to be the vast mode of development and profit earning in any industry. Economic
development of a country concerning investment and consumption can be taken into account
through the growth benefitted approach. The pricing strategy of fuel and crude oil products has
affected the automobile industry’s development. An increase in oil pricing may stimulate a
higher rate of accumulation in spare parts and automobiles (Mukherjee and Ryan, 2020). It is
required for automotive to make a technique that reduces pollution caused due to the smoke from
vehicles. Increment in economic factors such as exchange rates, currency rates and cost of raw
materials impact the profitability of the automotive industry. The automotive industry pertained
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to be more demanding in terms of their infrastructural developments. An increase in currency

rate higher the rise in revenue marketing gain.

4. Social factors
The customer market of the automobile industry occupies fascination of buying latest
model cars. An internal desire of individuals made them buy vehicles for the fulfilment of their
demands. People in China, the US, UK, Germany, France and Australia are prone to buy
automobiles according to the market fashion. The automotive industry is aware of the new trends
of fashion and customer attraction features. According to the level advancement, the companies
design such features by targeting customer attraction. The trends of marketing have increased the
growth, sales and revenue of the industry. Undoubtedly, the sociocultural perspective has driven
the force of driving popularity among men and women (Asadi, 2021). Socially, it is common for
people to have one or more vehicles in their daily use. The norm has been made in developed
countries of the world. Owning motor vehicles does not define that people should be away from
bicycles and buses, but instead, they choose to have their cars which have become a cultural
phenomenon. Some social factors may influence consumers and market access that attract
investors. The population developed in a high number of middle and upper class citizens
provided a ready market for innovating the automobile industry. Oppositely, people in lower-
class may find it challenging to afford luxuries like cars in their daily routine. Therefore, it would
require automobile companies to set up their business in the right location (Peden, 2020). The
type of vehicles sold in automotive goes through to check upon affordable cars and consume less
fuel while some individuals focus on the speed maintenance of vehicles. In UK, automotive
mobile focusing on developed high preferences while manufacturing their vehicles.

5. Technological factor
An automobile company have been working on prevailing safety measures for the safety
and security of transportation. Several technological aspects such as seatbelts, breaks and airbags
are estimated to be the incurred best resource for the technological development of the
automotive industry. The industry has worked hard to update its technological features for
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pertaining higher mode of safety measures required for its development. A high level of
technological development made it possible for automobile companies such as Tesla, BMW and
Toyota to launch their self-driving aspects in the vehicle market. Advancement in technology has
made it more efficient by concentrating on the demands of its customers (Sharma, 2020). In the
UK, the owners of automobiles are working hard to provide a more sustainable approach by
making technology efficient vehicles. Using technological features in cars includes battery
timings, safe and sustainable solar technology, speed accuracy, and high power maintenance.
The advancement in technology has changed the mode of transportation in the automobile
industry. Another significant aspect of the automotive industry is the technology used in the
safety of moto vehicles. Back then, in the 1980s, wearing seat belts became an essential point of
safety while driving. Now, rolling out airbags across the model seems to be an essential part of
the automotive industry's technological development. Maintaining standards of the automotive
industry are considered an underlying force that focuses on the manufacturer approach. Most
automotive is working to begin emergency brakes in their vehicles that increase front-end
collisions. Technological changes are related to changes that affect market or industry
development (Lu et al., 2020). Technology in the automotive industry has changed rapidly by
focusing on mobilisation advancement the reduced rate of accidents. Changes in technological
advancement pertain to get incorporated by new and advanced automotive manufacturers.

6. Legal factor
The primary issue that disturbed the reputation of the automotive industry was the
response to their copyright infringements. Certain car features such as trademarks, copyrights
and patents law should be protected by their legal impact (Skrickij, 2020). It is very uncommon
to hear about the legal slowdown in automotive, but it may happen. Recently, there is a rising
issue that Chinese automobile manufacturers have copied the design feature of any Western
company, due to which the company filed a case against it (Kumar et al., 2020). The government
has imposed regulations and legal rights for the industry by which they are required to work
under legal boundaries. Organisations and industries need to be aware of legislation and
regulations to bind within the territories they are working on it. The automotive industry has their
governance that restrict their automation importation. Several other models and years
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manufacture their implications to reduce environmental degradation within the Industrial

Revolution response effectively.

7. Environmental factor
This is an essential element to pertain to the rise of Corporate Sustainability
Responsibility. Various factors are included in climatic change, waste sustainability and
recycling procedures etc. It is required for the automotive industry to balance ecological impact
for the manufacturing of vehicles. Some carbon emissions can cause harmful effects to the
environment, due to which it may impose profound effects on atmospheric change.
Environmental pollutants have played a significant role in climatic change, which is affected by
the greenhouse effect (Kopelias et al., 2020). Over the last decades, it is noted that carbon
emission can cause gains global attention by increasing harmful effects derived from the incurred
greater force of global warming. Most of the time, there comes an increase in climatic change.
The government has ensured the automotive industry manufacture products that are used for the
safety of an environment. However, automotive manufacturers are striving hard to develop
global attention among individuals for the environment's safety. A considerable amount of
climatic change has effected industrial growth. Most manufacturers are working to sustain
environmental friendly vehicles for prevailing safety measures. Some advanced automobiles
used energy-saving cells (Adhikari et al., 2020). Motor vehicles are a part of everyday use for
many individuals. However, environmental consequences about safety and security have
influenced making safe environmental effects for the country’s benefit. On the other hand,
manufacturers are building to make electric vehicles for the stability of environmental effects.

8. Conclusion
In conclusion, pestle analysis has been criticised by many people based on its poor
analysis. The criteria of pestle analysis have revolved around surroundings, and it should be done
every six months for the safety and security of the environment. The response of pestle analysis
can be given through brainstorming, analysing evaluating the process to be given an insightful
approach. The automotive industry in the UK has been filled with advanced technologies that
free the environment from global warming. The criteria of following legal and political factors
stimulated to enforce reforms that worked for the benefit of individuals. Over the last decades, it
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is noted that carbon emission can cause gains global attention by increasing harmful effects
derived from the incurred greater force of global warming. Economic development of a country
concerning investment and consumption can be taken into account through the growth benefitted
approach. The emission policies have become a problem by introducing new carbon formulation
by addressing public concerns. Most of the time, there comes a change in trade policy that recurs
automotive to pertain sense of discomfort. Automotive industries need to focus on their
evaluation strategies for defining a framework of external forces that provides a realistic
approach. In the UK, the owners of automobiles are working hard to provide a more sustainable
approach by making technology efficient vehicles. Using technological features in cars includes
battery timings, safe and sustainable solar technology, speed accuracy, and high power
maintenance. Automobiles are considered as the social norms among individuals for
understanding its need and requirements. Increment in pricing can cause harm to the sales and
purchases of the vehicle.
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