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 commercial vehicles with Euro norms ahead of the mandated dates.

Ashok Leyland a leading Indian commercial vehicle manufacturing company is A perfect example for commercial manufacturer company following natural enviornment . strongest commitment to environmental protection, utilizing eco-friendly processes in their various plants. They even maintain an R&D group that aims to find ways to make their vehicles more fuel efficient and reduce emissions. Ashok Leyland has developed Hythane engines. which uses Hythane (H-CNG,) which is a blend of natural gas and around 20% of hydrogen.