University of Tech: PESTLE Analysis of Electric Vehicles - BUS301

This report provides a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of the electric vehicle (EV) industry. It examines how government regulations, tax credits, and political factors influence the market. Economically, the report discusses the cost-effectiveness of EVs, including maintenance and government grants. Social factors, such as consumer perception and the appeal of new technology, are also addressed. The technological section highlights advancements in EV technology, including user-friendly designs and improved safety features. Legal considerations, such as battery legislation and charge point regulations, are outlined. Finally, the report explores the environmental benefits of EVs, including reduced carbon emissions and noise pollution, as well as the use of renewable energy sources. The report concludes by summarizing the positive and negative elements within each PESTLE factor and their impact on the EV market.

PESTLE Analysis of Electric
Vehicles

Table of Contents
PESTLE Analysis of Electric Vehicles...........................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PESTLE Analysis........................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
PESTLE analysis is a framework that helps in analysing macro environmental factors of
business. This report will discuss PESTLE factors in relation with electric vehicles.
MAIN BODY
PESTLE Analysis
Political
Increasing regulations of the government for the reduction in carbon emission is biggest
favourable aspect for the car (Policy, 2016).
Government which get their revenue from petrol and diesel might not adopt electric car as this
affect their revenue (Jobs, tax and politics: three ways electric vehicles will change our world,
2020).
Government offering tax credit for buying electric cars is also a benefit to the electric cars and
this way this factor provides opportunity for the growth of electric car market.
Economic
Economic factors of electric cars includes that this is cost friendly, maintenance of electric cars is
less costly than other cars. This is because moving parts in electric cars are less than petrol/diesel
cars and this makes the cars cheap to maintain (Rastogi and Trivedi, 2016). This is most
important factor to affect electric cars in economic factor.
Though these cars are costly to buy but governments grants are availed to customers who are
buying these cars these cars which make it easy to buy for customers.
Later stable economic policies can help companies to sell and customers to buy such cars. As
this will be difficult for customers to buy such cars if they cannot take advantage government
grants and this is possible on stable economic policies.
Social

Social factors include perception of the buyers even after many advantages this cars has limited
customers, this is because of their new and unconventional nature (Achinas and et.al., 2019).
This factor needs to be addressed to increase the customers for electric cars. This is most
important social factor related to electric cars.
But along with this their new technology and their handling mechanism is one factor that attract
customers to buy the cars.
These cars are able to attract both types of customers from high class as they are costly to buy
upfront and for middle class buyers as they are cheaper to maintain and run.
Technological
Perfectly new technology, which help in easier maintenance of the car because moving parts in
this car are less than comparing to petrol/diesel cars which make it easier to maintain (Rastogi
and Trivedi, 2016).
New technology of the car does not require petrol/diesel to run the electric car saving the cost.
One of the important technological aspect and element in the electric cars is that these cars are
user friendly and technology improvement also improved safety features of the car.
Legal
This factor has some challenges for the cars, most important is batteries legislation which
requires authorisation for batteries which include registration and labelling.
EV charge points will need to locate the charge points which are subject to general network
connection rules, planning and safety regulations (Policy, 2016).
Environmental
Environmental factor is most important in relation with the electric cars. Benefits of the car to
environment include;
Reduced carbon emission, not just government but every citizen is thinking of the ways in which
carbon emission can be reduced (Electric vehicles & the environment, 2020).

Noise pollution reduction, the engine of the car is peaceful and this make it possible to reduce the
noise created to because of cars.
Use of renewable energy is one of the most important factor in environmental factor of the
electric cars, this is most favourable to environment.
CONCLUSION
All the factors has some negative and positive elements which can either be capitalized
by electric cars or they need to be taken care to avoid negative impact.

REFERENCES
Books and Journals
Achinas, S and et.al., 2019. A PESTLE Analysis of Biofuels Energy Industry in
Europe. Sustainability. 11(21). p.5981.
Policy, P., 2016. What is pestle analysis.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Online
Jobs, tax and politics: three ways electric vehicles will change our world. 2020. [Online].
Available from < https://theconversation.com/jobs-tax-and-politics-three-ways-electric-
vehicles-will-change-our-world-84910>.
Electric vehicles & the environment. 2020. [Online]. Available Through: <
https://www.energysage.com/electric-vehicles/advantages-of-evs/evs-environmental-
impact/>.