Pestle analysis for hybrid cars in US Coursework

Pestle analysis for hybrid cars in US - Coursework Example Politicians, in as early as 1990, have put emphasis on better environment; and thy showed concern for environmental pollution. The Clean Air Act was revised in 1990 and became tougher on emission norms (Wilson and Dilulio, 2008 p.561). Today, fuel is not only related to environmental issues, but also a concern for national security. In 2007 president Bush showed concern on America’s dependence on foreign petroleum. The present president, President Obama too is concerned. He wants to reduce the America’s ‘Addiction to foreign oil’. In 2009 Obama revised climatic policies and forced car makers to build more fuel efficient and pollution free cars (Tan et al, 2012, p.3). Presently the government provides tax benefits to the buyers of hybrid cars (Boone and Kurtz, 2013, p 75). From the above facts it is clear that political opinions and activities in the USA are very favourable for Hybrid cars. Tougher policy on vehicle emission means increased opportunities for zero or minimum emitting vehicles like hybrid cars. Economic Factors: There are some economic factors that can influence the hybrid car industry in the USA. America is largely dependent upon other countries for petroleum. If domestic fuel consumption is reduced US’s oil import will reduce. This will surely lessen US’s trade deficit (Tan et al, 2012, p.4). ... As hybrid cars are more fuel efficient people can save money on fuel (Miller and Stafford, 2020, p.38). However, a hybrid car costs more than a conventional car. Therefore, the initial high purchasing cost might discourage potential buyers of hybrid cars (Miller and Stafford, 2020, p.38). The government has made special budgetary allocations for new generation vehicles. This money is being spent on development of fuel-efficient and low-emission vehicles. This fact is an excellent encouragement for hybrid car industry (Tan et al, 2012, p.4). Therefore, it is clear that most of the economic factors can positively influence the US hybrid car industry. However, high price of hybrid cars might be a deterrent. Social Factors: The hybrid car industry could be influenced by several social factors. The environmental pollution is linked with social issues like health. Conventional cars that emit more harmful gases cause more damage to human health. Hybrid cars emit a negligible amount of these gases. Therefore they are seen as more human health-friendly. Moreover, hybrid cars are silent. Noise has negative impact on health. In this aspect too, hybrid cars promote better health (Tan et al, 2012, pp.4-5). Hybrid cars are now linked with social status. Reports show that US consumers buy greener products to improve social status. Consumers are even ready to ‘sacrifice luxury and performance to benefit from the perceived social status that comes from buying a product with a reduced environmental impact’ (Vaughan, 29 March, 2010). As hybrid cars are greener, owning a hybrid car will improve the owner’s social status (Vaughan, 29 March, 2010). Another social fact worth mentioning here is: women prefer electric cars.