PESTLE Analysis on

Toyota Hybrid Vehicles

• Automotive industry is coming up with great innovations in order to fulfil the demand of the market.
Hybrid vehicles is one of the examples of these innovations.

• FEATURES OF HYBRID VEHICLES

a) Utilize at least two different power sources.

b) HEVs- Combination of the internal combustion engine with electrical motors.
c) Reduce burden of gasoline , petrol and diesel.
d) Combine the benefits of both conventional fuel powered car and an electric car.
e) Large amount of money in order to invent , develop and maintenance of new technology.
 CENTRAL THEME OF THE CASE
• Tackling the situation of rising global warming issues and shortage of Fossil fuels because of use Automotive
Vehicle.
• Innovation done in the field of hybrid cars to address environmental and energy utilization issues and
rationale behind such innovations.
• Decision of Toyota to adapt a hybrid approach for creating a car with a lower impact on the environment in
the US market.
• Toyota Hybrid Car is a type of hybrid electric vehicles (HEVs) which uses combination of the
internal combustion engine with electrical motors to make the vehicle move. It uses the dual engine
technology improving the fuel efficiency and performance of the vehicle.
• The paper talks about rationale that moved Toyota into hybrid vehicle production despite heavy investment
in R&D and to identify its related factors by using PESTLE Analysis.
 STRENGTHS WEAKNESS
• UNDERDEVELOPED RECHARGING
• ENVIRONMENTAL IMPACT
INFRASTRUCTURE

• INTRODUCING NEW TECHNOLOGY • HIGH MAINTENANCE COST WITH BATTERIES

• FUEL EFFICIENT • PERFORMANCE PROBLEMS

OPPORTUNITIES THREATS

• GOVERNMENT SUBSIDIES FOR OWNERSHIP • FUEL PRICES REDUCTION

• INCREASING FOSSIL FUEL COSTS • LOW SALES MAY LEAD TO LOW REVENUES

• LOWER TAXES • COMPETITION IN FORMS OF ALTERNATIVE FUEL

 POLITICAL ECONOMIC SOCIAL

More trade debt due to Health and custom of

Energy policy act of 1992
more imports of nation. nation.

The California’s Zero Negative effect on the

Emission Vehicle (ZEV) nation’s gross domestic Air Pollution
product.
Corporate Average Fuel The cost of Fuel
Economy (CAFÉ) Mitigation costs and Consumption
Adaptation costs.
The Energy Policy Act of
2005 Trade imbalance Noise Emission
TECHNOLOGICAL LEGAL ENVIRONMENTAL

National Federation of
Blind (NFB)
The Creative and Effective Reduction of
Innovation of hybrid the Sound Pollution.
car technology Intellectual Property

SAE (Society of
Internal Combustion Automobile Engineers)
Engine (ICE) Less Consumption of
Oil
EPA (Environmental
Protection Agency)
• In this paper, the brief expansion of hybrid car was introduced.
• Theory and usage of PESTLE Analysis about hybrid car has been studied in detail.
• Development of policies in US has been studied.
• Economic activity will effect the popularity and productivity of hybrid cars in the world.
• Hybrid car technology will affect the social as it will reduce living cost.
• Legal factor will enable the quality of hybrid cars to fulfill the international automobiles.
• Lastly hybrid car technology will save environment due to its environment friendly characteristics.
• We conclude that PESTLE analysis is an efficient method to analyse the factors related to Toyota hybrid
vehicles production.
THANK YOU!