Hero Motocrop's Political Environment Analysis

Political / Legal Factors

Political environment consists of various factors related to public affairs and their effect on the business organization. Indian government auto policy focused at promoting an integrated, phased and particular conducive growth of the Indian automotive industry. It allowed automatic approval for foreign equity investment up to 100 per cent and there is no minimum. Political climate in a various countries producing and buying automobiles depends on policies on import, export and manufacture of automobile components. This will include policies on allowing for setting up of manufacturing plant by foreign companies. Taxation policies of indian government auto policy aims at promoting an integrated and conducive growth of the Indian automobile industry. .As the economy recovers on a strong government and as the global business cycle rises , automatically customer demand will grow across India. Hero MotoCorp is well poised to reach an economic recovery over the next 12-18months by increasing manufacturing capacity ,number of upgrades and by the help of new models in the pipeline.
Economic Factors
The Indian economy has been significantly stable, since the introduction of the industrial reform policies. According to the policy, reduction in industrial licensing, liberalization of foreign capital has resulted in a constant improvement of India’s economic environment. India registered a GDP of $5.07 trillion in 2013 and further improved GDP growth rate of 5% in 2014 as compared to 4.35% in 2013. As the per capita Income is rising, which is affecting the segments of various automobiles being ventured into. The concept of servicing in auto industry has changed into customer care now, thus inreasing the greater value into