Pest Analysis of Tyre Industry

PEST ANALYSIS OF TIRE INDUSTRY Tire Market in India is festering strongly and their production increasing from every year. In 2005, there were 40 beat manufacturing companies working in India which was consisted of major big brands in tire industry such as in force(p) year, MRF, Falcon Tires and couplet stones etc. we apply pest analysis on this grocery store to check at what extent political, economical, technological and social factors are affecting this tire industry in India. POLITICALThe government policy is untold favored too topical anesthetic manufactures as said by the managing director of Goodyear India in 2005 that the tire market in India was almost exclusively dominated by local anaesthetic players and 90% of all tires on the Indian market were made and sold by the local Indian companies so Big companies like Good year, Michelin etc are hardly visible in India Tire Industry Indianized Government is providing more leverage to the local market that the foreign tir e companies coming towards India.In 1926, when big giants in tire manufacturing like Dunlop, American firestone, Goodyear and Italian Ceat had much capital started their production plant in India than this had been a big treat for the local tire market. So Indian Government Immediately took an action and made a policy that if each foreign tire manufacturing company wanted to start their tire business in India than they had to act as locally and their names also seemed like locally such as Dunlop changed into Dunlop India and from Goodyear to Goodyear India.This Indianized process speeded up with the acquirement of most of the subsidiaries of foreign companies that operated in India Firestone was bought by Modis in the early 1980s and Ceat and Dunlop were taken oven by RPG. Agreements with former(a) foreign companies There are many contracts and agreement of Indian companies with other foreigner companies which are as follows * Under the Bangkok agreement, car and two wheelers tires were imported from china and South Korea at 10 percent custom duty.These imported tires had an average price 30 percent lower than tires sold by Indian companies. Some Indian companies like Apollo and JK tires tried to collaborate with Chinese companies in order to jointly wee-wee cross ply tires. * In 1984, there was a agreement between the Indian and Japanese companies to aspire the model of Maruti 800 from Japanese company. * Ford and Dacia Logan are soon to be manufacture under the agreement by the Indian company with the foreign companies.ECONOMICAL Growth of tire industry The tire industry is increase in India day by day. In 1926, first tires were made by British company Dunlop. This gave ski tow to flourish of tire industry in India. When Cross ply tires were first introduced than 65 % of tire gross sales in India were covered by cross ply tires. But with the introduction of radial tire, radial tires delineated 85% of car tire sales by volume.All the tire manufacturin g companies are increasing their shares because tire industry in India is grooming with every year. In 2005, MRF, Apollo and JK tires had a snarly competition and had a tough competition between them. Increases price of raw material The prices of natural rubber and petroleum, which are essential components for the manufacturing of tires, bonnie higher and higher which is badly effecting the tire manufacturing industry. TECHNOLOGY SOCIAL