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Legal and Political Environment

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Legal and Political Environment
Legal and political environment

• This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. • Sometimes these laws create new opportunities for business.

Various associations have been formed in India for automobile industry ➢ ACMA and SIAM are two major automobile association in India. ➢ acma(Automotive Component Manufacturers Association of India ) ➢ siam (Society of Indian Automobile Manufacturers ) ➢ Almost all major automobiles manufacturers are the members of these two association . ➢ these association perform various function and ➢ they keep the manufacturers informed of the various rules and regulation formulated by government.

Various legal that have been made by the govt relate to ■ safety measures ■ government’s intention on harmonizing the regulatory standards with the rest of the world ■ approval for foreign equity investment up to 100% ■ Formulation of an appropriate auto fuel policy to ensure availability of adequate amount of appropriate fuel to meet emission norms ■ Plan to have a terminal life policy for CVs along with incentives for replacement for such vehicles. ■ Assist development of vehicle using alternate energy source. ■ Promoting R&D activities in India by giving a weighted tax deduction of up to 150% for in house research and R&D activities.

Natural environment
Natural environment of the country is greatly affected by commercial vehicle industry mainly because of emissions from factory and vehicles . the Major global concern

Various measures are being taken by the govt and the commercial vehicle manufacturers to protect the natural environment . these include :- ■ Use of alternate biofuels ■ Use of eco friendly commercial vehicles ■ Anti pollution pressures ■ Implementation of Euro norms - Tata Motors is the first Indian Company to introduce

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