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Introduction:

The global automotive industry has a symbolic significance of the technological advancement by the human beings. Automobile is considered among the rapid growing industries in the world. This sector is deeply connected to a country’s economy due to its connections with other main sectors of the economy, this creates a multiplier effect on the growth of a nation and this sector plays an important part in increasing the GDP of the country. The automobile sector also employs many of the individuals and also helps in the growing industrial sector of any nation (Nag, Banerjee & Chatterjee, 2007). The sector’s revenue is reported at three hundred and five billion dollars and it is predicted that it will double that is six hundred and seven hundred billion dollars by 2030 (Marinetti, 1909).

Historical Background:

The first automobile in the world was designed by Nicolas Cugnot in 1769, he invented a tractor that was powered by a steam engine. When we say powered by a steam engine that means that cars were power-driven through burning of the fuel that in turn heated the water in a boiler that created steam and hard-pressed the pistons that pushed the crankshaft, which then ultimately functioned the wheels. However, Cugnot’s experiments stopped after the incident in 1771 that derailed his funding and he found himself with no money to conduct experiments. In the early 19th century many British engineers tried developing the vehicles powered by steam engines. Among them was Richard Trevithick who constructed a vehicle powered by a steam engine that led to the invention of multiple steam engine operated automobiles. However, their experiments were stopped due to traditional mid sets of the people and they were enforced to work for trains on railroads that developed the sector of railroads (Nyamwange & Nyamwange, 2014). 

In the second half of the 19th century, Etienne Lenoir who was a French engineer constructed an internal burning engine that used gas for fuel and an electric stimulus for ignition that was used for the first car motor vehicle. The German engineer, Otto, and Langen upgraded the invention by Lenoir in 1866 and developed a four-stroke cycle that is still used in this century. After two decades, another German engineer, Daimler used the four-stroke cycle in a gas vapor engine that he constructed in huge numbers. In the succeeding year, Daimler used his invention that was the petrol engine to a car motor vehicle. This technology was then used by Emile Levassor in France who was responsible for setting a basis for modern motor vehicles (Rae, 1959 as cited in Nyamwange & Nyamwange, 2014).

PESTLE Analysis:

The PESTEL Analysis is the abbreviation of six components that are political, economic, socio-cultural, technological, legal and environmental. This analysis is used to analyze the external environment of any industry. This model also permits the supervisors to detect the macroeconomic elements to reflect the development of the industry. Moreover, the model tries to hypothesize multiple cases on the bases of the elements to better forecast the future and to come up with a solution that can be beneficial in the future (UNICEF, n.d.).

PESTLE Analysis of Indian Passenger Car Market Automobile Industry (Ramamoorthy, 2016):

• Political: there is an autonomous environment in the country, the positive side of democratic atmosphere is that it keeps the country stable however, on the other the country is facing corruption and huge shames in the past. Due to this environment the country will suffer severe consequences in the long run.
• Economic: India can become the hub for manufacturing of small cars as the increase in demand of the local population however, the increase in interest and the devaluation of the currency won’t be able to make India a hub in the near future.
• Social Cultural: The upsurge in the Indian cars can be created due to shifting of majority of middle class into upper middle class, youth, the increase in the goals of the youth; these are positive elements that can increase the manufacturing of automobiles in India.
• Technological: various automobiles industries in India like Hyundai Motors India, Maruti Suzuki and Tata motors have invested in their Research & Development department and many others are creating this department for further advancements in this industry that will be a benefit for the country in the long run.
• Environmental: the increase in the rivalry among communities in the country as well as terrorist attacks can force the multinational companies in the automobile industry to not to expand their services or invest in India.
• Legal: many of the laws are same since the independence, they are from the British rule that needs to be changed in accordance to the new generation. The new laws are in process for the manufacturing of automobiles.