Pest Analysis of Tyre Industry

PEST ANALYSIS OF TIRE INDUSTRY fatigue Market in India is growing strongly and their production increase from any year. In 2005, there were 40 tucker out manufacturing companies working in India which was consisted of major big brands in s railroad care constancy such as acceptable year, MRF, Falcon Tires and Bridge stones etc. we ap allow for pest analysis on this market to check at what extent political, economical, technological and social factors be affecting this tire industry in India. POLITICALThe government insurance policy is much favored too local manufactures as said by the managing director of Goodyear India in 2005 that the tire market in India was almost only dominated by local 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 tire compani es 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 launch 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 any foreign tire manufacturing company wanted to start their tire business in India than they had to act as locally and their names too seemed like locally such as Dunlop changed into Dunlop India and from Goodyear to Goodyear India.This Indianized process speeded up with the accomplishment of most of the subsidiaries of foreign companies that operated in India Firestone was bought by Modis in the early eighties and Ceat and Dunlop were taken oven by RPG. Agreements with other foreign companies There are numerous contracts and treaty of Indian companies with other foreigner companies which are as follows * infra the Bangkok agreement, car and two wheelers tires w ere 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 together with produce cross ply tires. * In 1984, there was a agreement between the Indian and Japanese companies to get the model of Maruti 800 from Japanese company. * get across 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 growing in India day by day. In 1926, first tires were made by British company Dunlop. This gave rise to din of tire industry in India. When Cross ply tires were first introduced than 65 % of tire sales in India were covered by cross ply tires. But with the introduction of radial tire, radial tires represented 85% of car tire sales by volume.All the tire manufacturing companie s are increasing their shares because tire industry in India is grooming with every year. In 2005, MRF, Apollo and JK tires had a tough 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, comely higher and higher which is badly effecting the tire manufacturing industry. TECHNOLOGY SOCIAL