INDIAN AUTOMOBILE MANUFACTURING INDUSTRY – A STUDY ON THE FINANCIAL PERFORMANCE

The Automobile industry in India plays a major role in driving economic growth and technological advancement. Automobile Manufacturing companies employ over 5 Million people directly and through Auto Ancillary companies. Auto Ancillary companies are dependent on Automobile Manufacturing companies. In this paper, a study has been done on the financial performance of 13 Automobile Manufacturing companies listed on the Stock Exchange for the financial year ended 31st March 2020. The analysis of the key financial indicators for profitability, liquidity, solvency and efficiency of these companies shows that many Automobile Manufacturing companies are not financially healthy. Only 23% of the companies (3 out of 13 companies) are in a ‘safe zone' as far as financial distress and bankruptcy are concerned. The Covid-19 impact may adversely impact the financial performance further in the following financial year. Government support may be needed to protect this sector.