PESTEL analysis and the macro-environmental factors that influence the development of the electric and hybrid vehicles industry in Brazil

Abstract

Electric and hybrid vehicles have existed since the end of the 19th century. With the current demand for sustainable development of many countries, they emerged as a potential solution for some transportation sector problems. In Brazil, not differently, these vehicles become an essential part of the discussions about the future of the country’s transportation system. With an important automotive industry and a huge electric system, 72% renewable energy-based, this country appears to be the right place to develop this industry. It is well known that, in general, nations offer support, within their capacity, for the development of their economic sectors. For strategic management, the factors offered by a country are found in the so-called organizational macro-environment, which can be organized in political, economic, legal, technological, socio-cultural and ecological, among other segments. The importance of assessing the macro-environment's influence on developing Brazil's electric and hybrid vehicles industry can be noted. In this way, this article presents a comprehensive analysis of the Brazilian scenario showing potential opportunities and threats offered by its macro-environment. The PESTEL framework was used. The results show that Brazil has profitable segments that could impulse the electric and hybrid car industry. Technological and ecological segments are the leading positive influencers. Political and legal segments also are positive forces for the sector, despite the current crisis faced in the country. The economic and social segments present the least potential opportunities and the most significant amount of potential threats.