PEST ANALYSIS OF TIRE INDUSTRY
Tire Market in India is growing strongly and their production increasing from every year. In 2005, there were 40 tire manufacturing companies working in India which was consisted of major big brands in tire industry such as Good year, MRF, Falcon Tires and Bridge stones etc. we apply pest analysis on this market to check at what extent political, economical, technological and social factors are affecting this tire industry in India. POLITICAL:
The government 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 exclusively 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 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 any 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 acquisition 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 other 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...
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