IJMSS Vol.03 Issue-07, (July, 2015) ISSN: 2321-1784 International Journal in Management and Social Science (Impact Factor- 4.358) A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories International Journal in Management and Social Science http://www.ijmr.net.in email id- irjmss@gmail.com Page 68 Comparitive Financial Performance of Maruti Suzuki India Limited and Tata Motors Limited Dr. Nidhi Agarwal Assistant Professor School of Manangement, Babu Banarasi Das University Lucknow Abstract One of the major industrial sectors in India is the automobile sector. Subsequent to the liberalization, the automobile sector has been aptly described as the sunrise sector of the Indian economy. On the canvas of the Indian economy, automobile industry occupies a prominent place. The study focuses on the comparative financial performance of Maruti Suzuki India Limited and Tata Motors Limited. Financial appraisal is the process of determining the operating and financial characteristics of a firm from accounting and financial statements. Financial performance of Maruti Suzuki India Limited and Tata Motors Limited has been studied by Liquidity analysis and leverage analysis (long term solvency analysis).LiƋuiditLJ aŶalLJsis atteŵpts to aŶalLJses the ĐoŵpaŶies aďilitLJ to ŵeet its shoƌt -term obligations. Leverage ratios assess the long-term solvency of a firm i.e. ability to repay the principal amount when due; and the ability to pay the interest and dividend promptly and periodically. Key Words: Automobile Industry, Financial performance, Liquidity analysis, leverage analysis Introduction One of the major industrial sectors in India is the automobile sector. Subsequent to the liberalization, the automobile sector has been aptly described as the sunrise sector of the Indian economy. This sector has witnessed tremendous growth during the last two decades. On the canvas of the Indian economy, automobile industry occupies a prominent place. Due to its deep forward and backward linkages with several key segments of the economy, automobile industry has a strong multiplier effect and is capable of being the driver of economic growth. The well-developed Indian automobile industry skillfullyfulfils this catalytic role by producing a wide variety of vehicles- passenger vehicles, commercial vehicles, two wheelers and three wheelers. Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in 1993. With the