Financial performance of Indian automobile companies after liberalization: A comparative study of Maruti Suzuki and Tata Motors

The automobile sector is the dominant player not only in India but also in the economy of the world. Due to its forward and backward linkages with several key segments of the economy, the industry has a strong multiplier effect of industrial growth. The industry has been evolving over the years, meeting up with challenges as varied as transitions, consolidations and restructuring and thereby adapting to the new market environment. The present paper measures the financial performance of two major automobile companies of Indian origin, Tata Motors and Maruti Suzuki after the policy of liberalization and reveals the comparative financial strength of both the companies under study on the basis of liquidity, efficient use of assets, profitability etc.