A study on Profitability Analysis of Automobile Industry in India

Abstract

The growth of every economy is inextricably linked to the state of its transportation infrastructure. The expansion of the global transportation network has reached India as well. The Indian car sector is likewise flourishing, taking center stage in the country's economic landscape. Ratio analysis, descriptive statistics, and regression are used to examine the profitability and solvency of selected Indian vehicle manufacturers. Short-term solvency situation is not sufficient during the research periods, which is the study's main result. As a result, it is imperative that the corporations enhance their cash reserves. Companies should pay special attention to the debt-equity ratio and the current assets-to-shareholders-funds ratio, which both indicate a changeable tendency, in order to strengthen their debt-, equity-, and shareholder-wealth positions. A company's profitability may be increased through reducing production costs, increasing investments in fixed assets, and expanding the frequency with which sales are made.