PESTLE and SWOT Analysis of Electric Cars in the Malaysian Market

This report presents a macro environmental analysis of the electric car market in Malaysia, utilizing the PESTLE framework to assess political, economic, social, technological, legal, and environmental factors influencing the industry. The Malaysian government's support through reduced tax rates and automotive mission plans is highlighted, alongside stable economic policies and a growing tourism industry. The analysis also acknowledges technological advancements and well-defined automobile regulations. A SWOT analysis identifies strengths like environmental friendliness and weaknesses such as high import tariffs and weak brand awareness. Opportunities include increased purchasing power and government subsidies, while threats encompass emerging competition and rising raw material costs. The report concludes by emphasizing the importance of understanding these factors for strategic decision-making in the electric car market. Desklib provides students access to a wealth of study resources, including similar reports and solved assignments.

Running head: MACRO ENVIRONMENTAL ANALYSIS
MACRO ENVIRONMENTAL ANALYSIS
Name of the Student
Name of the University
Author Note

1MACRO ENVIRONMENTAL ANALYSIS
PESTLE Analysis
Electronic cars were discovered back in the year 2010 and with respect to this, there have
been various debates and discussions regarding the success of these cars in the international
market. The PESTLE Analysis is a useful strategic management tool, which is an acronym for
the analysis of the Political, Economic, Social, Technological, Legal and Environment factors
(Hill, Jones and Schilling 2014). The PESTLE Analysis for the electronic cars in Malaysia has
been done as follows:
Political
The political factors are mainly concerned with the regulations of the government. The
Government in order to support or limit the business may come out with different policies and
procedures which may have an impact on the various operations of the business. In case of
electric cars in Malaysia the government has been reducing the tax rates with respect to the
product in order to be able to promote the product (Rothaermel 2015). The government of
Malaysia has also launched an automotive mission plan which aims to support the government
and largely looks out make the promotion of the cars easier. Hence, from the government`s side
the electric cars are supported.
Economical
The economic policies in Malaysia are quite stable in nature and tends to support the
growth of the electric car business. The finance available for the electric car purchase is easily
available and hence, for this purpose the promotion and the demand for the purchase of the
electric car has been considerably high. The duties and taxes as imposed on the electric cars is

2MACRO ENVIRONMENTAL ANALYSIS
also very low in order to promote the sales of the product as they are environmental friendly as
well. Moreover, the state and local government provide various economic incentives on both the
manufacturing and purchase of the products in Malaysia which make it a viable switching
option.
Social/ Demographical
The social as well as the demographical market in Malaysia is very lucrative in nature.
With massive boost in the tourism industry and the income level of the individuals having been
increased considerably, the growth of electric cars is often viewed as a viable solution for the
business (Wheelen et al. 2017). The labor costs in Malaysia is one of the lowest in the world.
Moreover, the youth population has been increasing considerably which helps in the marketing
of these goods.
Technological
Malaysia has been an emerging hub for the automobile and research industry. They have
gained the access to advanced technology which has thereby increased the potential of the
country to adapt to the electric car components. The supplier availability is also considerably
high for the raw materials.
Legal
The Malaysian automobile regulations are well defined and are extensively at par with
the emission and safety standards around the globe. Hence, the manufacturing and distribution of
electric cars can be deemed to be viable in Malaysia. Moreover, the country is quite strategically
located with closeness to major export markets.

3MACRO ENVIRONMENTAL ANALYSIS
Environmental
As these cars are environmental friendly in nature, these are greatly supported by various
groups and governmental bodies (Williamson et al. 2013). The weighted tax deduction on the
electric cars is more than 150% with respect to in house research and development, which makes
it quite attractive. However, the import duties on these kinds of products is very high. Moreover,
as these cars support the environment they are widely popular among the different strata’s of the
society who care about the environment.

4MACRO ENVIRONMENTAL ANALYSIS
References
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. Pearson.
Williamson, D., Cooke, P., Jenkins, W. and Moreton, K.M., 2013. Strategic management and
business analysis. Routledge.

5MACRO ENVIRONMENTAL ANALYSIS
SWOT Analysis
Strengths
 The product is an environmental
friendly product
 It reduces the cost of transportation
 The understanding of the Malaysian
market (Williamson et al. 2013).
Weaknesses
 The import tariffs as present in the
country is very high
 The brand awareness of the electric
cars is not very strong.
Opportunities
 The purchasing power of the different
consumers has increased considerably.
 There are various tax benefits as
present in the product in the
Malaysian market
 Government subsidies Cheap labor available
Threats
 Emerging competition with respect to
the product
 Increasing cost of the raw materials
 Rapid change in consumer preference