Environmental Factors Affecting Automobile

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Firstly, as our product is a special case as it 's only produced by request so it means that the factors that affect the demand will be the same factors that affect the supply.

Environmental factors for a company or industry refer to variables and conditions around that company that cannot be changed by the company but it does have a fair amount of control over the impact of the environmental factors on its performance and this control can be achieved by understanding and responding wisely to these factors by the management of its internal factors and we can differentiate the environmental factors from the internal factors as the company have a reasonable control over these factors and the environmental factors can be political, economic, sociocultural, technological, geographic environment or legal.

Some of the major environmental factors affecting automobile industry are the Political climate in different countries producing a buying automobile regarding policies on import, export and manufacture of automobiles and automobile components. This will also include policies on allowing setting up of manufacturing plants by foreign companies, Stability of governments. This may affect the future conditions in a country or taxation policies.

The population figures and automobile buying capacity of people, Level of economic activity that affects need for commercial use of automobiles, Lifestyle and preferences of people, which impact their choice of types of automobiles, Social