THE IMPACT OF MACROECONOMIC CONDITIONS ON INDIAN AUTOMAKERS INCLUDED IN THE S&P BSE MANUFACTURING INDEX LIST

Abstract

The Indian automobile industry plays a pivotal role in the nation's economic development and is significantly influenced by changing macroeconomic conditions. This research examines the impact of key macroeconomic variables—Inflation, Gross Domestic Product (GDP), Crude Oil Prices, and Per Capita Income—on the production and sales performance of Indian automobile companies listed under the S&P BSE Manufacturing Index. Despite the sector’s importance, limited studies have investigated how these macroeconomic indicators affect its growth trajectory. Utilizing secondary data sources such as annual reports, financial statements, and databases like SIAM, IBEF, and Statista, this study spans the period from 2014 onwards. A multiple regression analysis is employed to evaluate the relationship between the identified macroeconomic variables and the performance of automakers in terms of vehicle production and sales. The findings aim to offer valuable insights for industry stakeholders, helping them make informed strategic decisions in response to changing economic trends.