Scribd
Upload
280 views7 pages

Pestel Analysis of Maruthi Suzuki

Maruti Suzuki has seen declining sales due to various PESTEL factors. Political factors include government initiatives to promote electric vehicles through tax benefits. Economic factors are high fuel prices, low GDP growth, and banks not passing lower interest rates to consumers. Social factors include ride-sharing apps providing convenient alternatives to car ownership. Technological factors involve stricter BS6 emissions standards. Legal factors include uncertainty over BS4 vehicles and higher penalties under the new Motor Vehicle Act.

Uploaded by

Aaron
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
280 views7 pages

Pestel Analysis of Maruthi Suzuki

Maruti Suzuki has seen declining sales due to various PESTEL factors. Political factors include government initiatives to promote electric vehicles through tax benefits. Economic factors are high fuel prices, low GDP growth, and banks not passing lower interest rates to consumers. Social factors include ride-sharing apps providing convenient alternatives to car ownership. Technological factors involve stricter BS6 emissions standards. Legal factors include uncertainty over BS4 vehicles and higher penalties under the new Motor Vehicle Act.

Uploaded by

Aaron
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

PESTEL ANALYSIS OF

MARUTHI SUZUKI
By:
AARON D'SOUZA - 1928801
JIJOY VARGHESE - 1928809
RAYAN AHMED - 1928821
UJJWAL ANAND - 1928828
Introduction
• Maruti Suzuki is a leading automobile
manufacturer in passenger vehicles segment
in India
• It was established in the year 1981 as a JV
between Government of India and Suzuki
Motor Corporation.
• The company has a market share of 47.4%
• The company has seen a decline in sales over
the past few months due to several factors.
POLITICAL FACTORS
• The Government has announced the The National Electric Mobility
Mission Plan to promote sales of electric vehicles.
• They have announced a number of measures to promote the sales of
electric vehicles. These include :
Reduction in GST from 12% to 5%
Additional income tax deduction of 1.5 lakh rupees on the interest
paid on the loans taken to purchase EVs
• High GST rates on automobile industry discourages people from
purchasing vehicles.
ECONOMIC FACTORS
• India’s gross domestic product growth slowed down to 4.5 percent, a
6-year low in the September quarter.
• Despite reductions in rates by the RBI, banks have not passed on the
benefit of lower interest rates to the consumers.
• Banks have been extra vigilant while issuing loans due to the high
susceptibility of a default.
• Between August 2015 and August 2019 price of petrol has risen by 15
percent
SOCIAL FACTORS
• With the boon of the
smartphone and cheap internet,
we have convenient cab services
from apps like Uber and Ola.
• Several hazzles of owning a
vehicle like parking issues, traffic
etc.
• Rental car services like Zoomcar,
Drivezy etc
TECHNOLOGICAL FACTORS
• The Bharat Stage 6 (BSVI) norm is the sixth mandate for vehicular emissions
and a much welcome change amidst the rampant air pollution in India.
• BS 6 is a stricter, more restrictive norm that will give a jumpstart to India’s
long battle with air pollution. With the roll-out of the BS 6 norms, India will
come at par with the US and European equivalent emissions norms.
• Maruti Suzuki has taken the lead to make its cars BS6 compliant much ahead
of the deadline, which also underlines our commitment towards a cleaner
environment. Our BS6 cars have upgraded hardware and software along
with the exhaust system. The upgrades help achieve better performance,
and strict adherence to BS6 emission norms.
LEGAL FACTORS
• Uncertainty over future of BS-IV vehicles after India adopts BS-VI on
April 1, 2020 is one of the reasons why demand for these vehicles
stagnated.
• The Motor Vehicle Amendment Act, 2019 which prescribed stricter
rules for driving and penalties which have risen by four to ten times
compared to their previous levels have acted as a purchase deterrent.

You might also like