Political / Legal Factors
Political environment consists of various factors related to public affairs and their effect on the business organization. Indian government auto policy focused at promoting an integrated, phased and particular conducive growth of the Indian automotive industry. It allowed automatic approval for foreign equity investment up to 100 per cent and there is no minimum. Political climate in a various countries producing and buying automobiles depends on policies on import, export and manufacture of automobile components. This will include policies on allowing for setting up of manufacturing plant by foreign companies. Taxation policies of indian government auto policy aims at promoting an integrated and conducive growth…show more content… The Indian economy has been significantly stable, since the introduction of the industrial reform policies. According to the policy, reduction in industrial licensing, liberalization of foreign capital has resulted in a constant improvement of India’s economic environment. India registered a GDP of $5.07 trillion in 2013 and further improved GDP growth rate of 5% in 2014 as compared to 4.35% in 2013. As the per capita Income is rising, which is affecting the segments of various automobiles being ventured into. The concept of servicing in auto industry has changed into customer care now, thus inreasing the greater value into…show more content… This company is adapting numerous new technologies and techniques for making its motor bikes more and more famous among the customers. It is also focusing on introducing low priced luxury bikes in the global market. Hero has consistently relied on innovation, modern technology and stylish design to sustain an excitement amongst customers.
Global Factors
The global recession changes the automotive industry landscape. As the industry recovers, automobile companies across the value chain must concentrate on profitable and sustainable growth, various financial and operational flexibility, strategic investments in new technologies and seizing oppordifferent tunities in high-growth markets.
Continuously rising fuel prices and increasing environmental concerns among different customers are encouraging two wheelers specially motor bike manufacturers to expand their portfolios .It emphasizes to shift production to highly fuel efficient products and sporty bikes. Rising incomes in various emerging countries will buoy demand that’s why manufacturers will continue to tap into these markets because of their low production costs which will help in turn to grow over the next five years.
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Demographic