Working Capital Management of Indian Automobile Industry with Reference to Maruti Suzuki Ltd.: An Overview

Working Capital Management (WCM) involves strategically balancing a company's short-term assets and obligations to maintain financial health and operational efficiency. The primary goal is to ensure that a company can fund its operations without facing cash flow interruptions or liquidity crunches, which, in turn, supports sustainable growth. The Automotive Industry in India in 2025 is the world's third-largest by annual production worth US$250 billion, behind the United States (US$880 billion) and China (US$530 billion). The growth of automotive industry in India is fueled by the country's GDP growth (world's 3rd largest in PPP and 4th largest nominally) and rapid highway construction. In 2022, the industry accounted for 8% of the country's total exports and 7.1% of overall GDP. On this backdrop, the present study has been undertaken to overview the policy of Working Capital Management in improving the profitability and sustainability of Indian Automobile Industry, particularly Maruti Suzuki Ltd.

Working Capital Management (WCM), Gross Domestic Product (GDP), Profitability, Sustainability, Purchasing Power Parity (PPP) and Cash Conversion Cycle (CCC)

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