Financial Performance Analysis of Major Indian Automobile Companies – A Comparative Study for the Period 2020-21 to 2024-25

Abstract

This paper investigates the financial health of five prominent Indian automobile manufacturers — Maruti Suzuki India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, Bajaj Auto Limited, and Eicher Motors Limited — spanning the five-year window from 2020–21 through 2024–25. The methodology employs financial ratio analysis across four core dimensions: profitability, liquidity, long-term solvency, and capital efficiency. Primary data originates from audited annual reports and recognised financial databases. The findings indicate that Bajaj Auto and Eicher Motors consistently recorded the strongest returns on equity and the most stable profit margins, while Maruti Suzuki retained its commanding position in domestic passenger vehicle volumes. Tata Motors delivered the most dramatic financial reversal across the period, recovering from deep pandemic-induced losses to record sector-leading profits by 2023–24. Mahindra and Mahindra exhibited measured, consistent growth across all dimensions without taking on disproportionate balance sheet risk. A key conclusion is that no single firm dominates every financial dimension simultaneously — each entity exhibits a distinct performance profile shaped by its product mix, capital structure, and strategic choices. As the sector confronts accelerating EV adoption and tightening emission norms, the companies that combine financial resilience with technology investment will be best positioned for the next phase of growth.