Working Capital Management Strategies In The Automobile Sector: A Comparative Study Of Tata Motors And Mahindra & Mahindra

Abstract

This study investigates working capital management, ratio analysis, and profitability dynamics of Tata Motors and Mahindra & Mahindra Limited, India's preeminent automotive competitors. A side-by-side comparison elucidates how these entities deploy operating capital to optimise financial performance and sustain market leadership. Effective working capital management is pivotal for organisational liquidity and operational continuity, entailing judicious oversight of current assets and liabilities. Ratio analysis, conversely, provides a rigorous evaluation of financial health using key metrics derived from financial statements. A mixed-methods research design was adopted, integrating quantitative scrutiny of secondary financial data (balance sheets and income statements, 2020–2025) with qualitative appraisal of strategic managerial practices to evaluate liquidity, operational efficiency, solvency, and profitability. Results delineate divergent efficacies: Tata Motors demonstrates superior inventory turnover amid market fluctuations, whereas Mahindra & Mahindra exhibits enhanced liquidity resilience. These insights affirm the imperative of adaptive working capital strategies for competitive advantage in emerging automotive markets.