A Comparative Financial Performance Analysis of Selected Indian Automobile Companies

Ms Sriabinaya. R, MBA

SAKTHI INSTITUTE OF INFORMATION AND MANAGEMENT STUDIES, POLLACHI

Dr R. Sharmilla, Professor

SAKTHI INSTITUTE OF INFORMATION AND MANAGEMENT STUDIES, POLLACHI

DR. R. Kavitha, ASSOCIATE PROFESSOR

SAKTHI INSTITUTE OF INFORMATION AND MANAGEMENT STUDIES, POLLACHI

ABSTRACT

The Indian automobile industry, contributing approximately 7.1% to national GDP and employing over 37 million people, represents one of the most dynamic sectors of the Indian economy. This study evaluates and compares the financial performance of five selected listed automobile companies — Tata Motors, Maruti Suzuki India Limited, Mahindra & Mahindra Limited, Ashok Leyland, and Force Motors — over a five-year post-COVID recovery period from 2021 to 2025. Using secondary data sourced from published annual reports, the study employs ratio analysis (leverage, profitability, liquidity, and efficiency ratios), trend analysis, and descriptive statistical tools including mean, standard deviation, and coefficient of variation. The findings reveal a remarkable sectoral recovery, with most companies demonstrating significant improvement in profitability, progressive reduction in debt levels, and consistent revenue growth. Maruti Suzuki emerged as the most financially stable company, while Tata Motors displayed the strongest financial turnaround during the study period. The study concludes that ratio analysis is an effective and reliable tool for evaluating financial performance across companies of differing sizes and sub-segments within a capital-intensive industry.

Keywords: Financial Performance, Indian Automobile Sector, Ratio Analysis, Trend Analysis, Post-COVID Recovery, Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Ashok Leyland, Force Motors