Published Paper Details:

The Indian automobile sector plays a pivotal role in the country's manufacturing output, employment generation and technological progress. However, the sector has experienced significant structural and operational changes during the post-pandemic period, influenced by supply chain disruptions, rising input costs, regulatory transitions, and the progressive shift toward electric mobility. This study evaluates the financial efficiency of selected automobile companies listed on the BSE across three major segments: commercial vehicles, passenger cars & multi-utility vehicles, and two & three wheelers. The analysis covers a five-year period from 2020-21 to 2024-25, employing key asset utilisation ratios including Total Assets Turnover, Fixed Assets Turnover, Working Capital Turnover, Inventory Turnover and Debtors Turnover. Descriptive statistics (Mean, Standard Deviation, and Coefficient of Variation), Compound Annual Growth Rate (CAGR) and ANOVA are applied to assess performance variations between companies and across years. The results reveal significant inter-company differences in Total Assets Turnover, Fixed Assets Turnover, Inventory Turnover and Debtors Turnover, indicating varied strategic approaches to asset use, production scale, and credit policies. However, Working Capital Turnover exhibited no significant differences across companies or time periods, suggesting sector-wide stabilization in cash conversion cycles. Passenger car manufacturers demonstrated the highest efficiency in asset utilisation, while two & three-wheeler firms showed stronger productivity in fixed asset use. The study concludes with targeted managerial recommendations for improving capital productivity, working capital governance, and operational efficiency.