Advanced International Journal for Research

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Call for Paper Volume 7, Issue 5 (September-October 2026) Submit your research before last 3 days of October to publish your research paper in the issue of September-October.

Profitability Performance of Selected Automobile Companies in India

Author(s) Ms. B Lakshmi Prasanna, Prof. M. Venkateswarlu
Country India
Abstract The automobile industry is one of the key drivers of India’s manufacturing and service sectors, contributing significantly to GDP, employment generation and export earnings. In a highly competitive and cyclical market environment, sustained profitability has become critical for the long term survival and growth of automobile firms. This study examines the profitability performance of selected Indian automobile companies over a defined period using secondary data sourced from published annual reports and financial databases. Core profitability indicators such as net profit ratio, operating profit ratio, return on assets, return on equity and earnings per share are computed, and supported by statistical tools including mean, standard deviation, coefficient of variation and trend analysis to evaluate stability and growth in profits. The analysis aims to identify inter company differences in profitability, understand the factors influencing these variations, and assess whether the observed differences are statistically significant. Findings are expected to provide insights for investors, managers and policy makers on the financial strength, efficiency and value creation capability of leading automobile companies in India, and to offer suggestions for improving profitability performance in the context of evolving market, regulatory and technological dynamics. Contributors to the growth of the Indian economy, contributing significantly to GDP, employment, and exports. Major companies such as Maruti Suzuki India, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hero MotoCorp, Eicher Motors, and TVS Motor Company dominate the sector. Profitability analysis evaluates a company's ability to generate earnings compared with its revenue, assets, and equity. The profitability performance of selected automobile companies in India is a critical area of study because the auto industry is a major growth engine for the Indian economy and a highly competitive, capital intensive sector. The Indian automobile industry contributes around 7–7.5 percent to India’s GDP and roughly 40–49 percent to manufacturing GDP, while generating several crores of jobs across its value chain. As India aspires to sustain high economic growth, the performance of leading automobile manufacturers such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hyundai and others gains special importance because their profitability influences investment, employment and technological upgradation in the sector.
Keywords Gross Domestic Product (GDP) Maruti Suzuki India, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hero MotoCorp, Eicher Motors, and TVS Motor Company.
Field Mathematics > Economy / Commerce
Published In Volume 7, Issue 5, September-October 2026
Published On 2026-09-08
DOI https://doi.org/10.63363/aijfr.2026.v07i05.7613

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