Main Article Content
Automobile industry was in full-bloom after the advent of New Industrial Policy, 1991 due to various foreign collaborations and technological know-how. But, the upsurge of the COVID 19 pandemic and resultant lockdown, disrupted the entire production process along with the disposal pattern of an individual, hitting this sector hard as they are not a part of necessity segment which was demanded in purview of crisis. This paper tried to study the level of impact in automobile sector with regard to the macro-economic variables with special reference to TATA MOTORS and its financial performance. Various tools and techniques have been used to identify the relationship and influence level between macro-economic variables and company’s performance. The analysis revealed that the movements of GDP and the RoE have no consistent relation between them. This is because there are a lot of identifiable and unidentifiable factors which have an influence on the company’s financials.A proper relationship cannot be established if any factor is studied in isolation. The cost of new emission norms which tends to increase the price of entry level vehicles; a price sensitive segment along with the ongoing pandemic, calls for government support (even in the form of Goods & Service Tax cuts) will be well appreciated.