A Comparative Study on the Financial Performance of Tata Motors and Maruti Suzuki Using Ratio Analysis

ABSTRACT The Indian automobile industry is undergoing a massive transformation driven by changing consumer preferences, electric vehicle (EV) advancements, and post-pandemic economic recovery. The present study provides a comprehensive comparative evaluation of the financial performance of two industry giants—Tata Motors and Maruti Suzuki—from the financial years 2021 to 2025. Secondary data derived from published annual reports and financial statements was utilized for this research. Analytical tools such as Trend Analysis and Ratio Analysis were applied to evaluate profitability, liquidity, solvency, efficiency, and market performance. The findings reveal that Maruti Suzuki maintains a highly stable, almost debt-free operational model with superior inventory management. In contrast, Tata Motors has showcased a remarkable financial turnaround, driven by aggressive expansion into premium SUVs and EVs, coupled with a successful debt-reduction strategy. The study concludes that both automakers have distinct but highly successful strategies to ensure long-term sustainability in a rapidly evolving market. Keywords: Financial Performance, Ratio Analysis, Automobile Industry, Tata Motors, Maruti Suzuki