Hyundai PESTLE Analysis
Hyundai PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. PESTLE Analysis of Hyundai examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Let us start the Hyundai PESTLE Analysis:
Quick Glance:
Political Factors:
The political factors in the Hyundai PESTLE Analysis can be explained as follows:
Hyundai is an international car brand having its business spread across geographies. The Political Stability Index data shows a constant increase in the political stability in the Asian – Pacific market which is a good indicator for Hyundai. The political relations between the two nations can also become an important factor in deciding which country to invest.
Unfriendly relations with a nation can lead to higher taxes and regular and strict checks. Change in governments and their policies can impact the business of Hyundai as a brand.
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Economic Factors:
Below are the economic factors in the PESTLE Analysis of Hyundai:
The world keeps on witnessing a growth & slowdown in the market. The economic slowdown has took a toll in one of the prominent markets of Hyundai i.e.
India. More than 3.5 lakh jobs have been lost. Various automobile giants are trying to nullify this slowdown by offering hefty discounts and other schemes to get their sales back on track. Although, the other variants of Hyundai seem to get affected by the present economic situation, but Hyundai cars are doing considerably well. Due to its amazing design and new features, it gives an exceptional experience. That is why even though it is a late entrant is the Compact SUV space; it has successfully been able to capture a significant market share. With the unemployment rates as high as 6% i.e. 30 million unemployed people, cheap labor will be easily available and hence cutting the costs for Hyundai.
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Social Factors:
Following are the social factors impacting Hyundai PESTLE Analysis:
Since both the males and female share a significant ratio of number of drivers, i.e. 60:40, Hyundai should definitely cater to the wants of both the genders and customize its products accordingly. Hyundai targets people from the middle class and upper class as well. For example: In Hyundai has more than 15 variants with the price ranging from $6000 to $35000.
Technological Factors:
The technological factors in the PESTLE Analysis of Hyundai are mentioned below:
Gasoline Direct Injection (GDI) – Hyundai uses GDI technology which improves fuel efficiency and reduces carbon emissions. But Hyundai’s vehicles provide less mileage as compared to Maruti Suzuki’s vehicles which fall under the same category. Also, many companies have started working on this Artificial Intelligence.
Hyundai should also invest in this space to have a cutting edge over its competitors
Legal Factors:
Following are the legal factors in the Hyundai PESTLE Analysis:
Countries have strict laws to protect the Intellectual Property Rights. The data available from Department of Industrial Policy and Promotion (DIPP) shows a significant increase in the filing of patents, trademarks and copyrights in India. This will attract foreign investments since the investors won’t find India to be a risky market to invest into. Protection of Intellectual Property Rights plays an important role in deciding which country to invest into. Discrimination Laws –Most of the nations where Hyundai currently works in; they have several bodies which keep a check on the discriminatory practices which take place at the workplace. For example: Article 15 of the Indian constitution prohibits any kind of discrimination on the basis of caste, creed, gender, religion etc. This ensures a better working environment for the people.
Environmental Factors:
In the Hyundai PESTLE Analysis, the environmental elements affecting its business are as below:
For Hyundai, like all car companies, environmental responsibility is of prime importance. Since most cars run on fuel, emission control becomes critical for Hyundai.
United States has fined $47 million to Hyundai for illegally importing and selling of dirty diesel engines which did not meet US emission standards. Hyundai should not be indulged in any unethical behaviors as this can have a huge global impact. News like this can tarnish its brand image and hence affect its revenues.
To conclude, the above Hyundai PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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