Vol. 6, Issue 7, Part D (2020)

Abstract
The automobile industry is a mainstay for macroeconomic evolution and technological advancement of the global economy. India is a prominent auto exporter and has strong export growth expectations for the near future. Automobile exports grew 26.5% during April-July 2018. It is expected to grow at a CARG of 3% during 2016-2026.The contribution of India automobile industry is 7.1% in Gross Domestic Product (GDP). Due to the favorable policies of Indian Government the key players of this sector will make India a learning industry in the production of 2W and Four Wheeler (4W) and world break all the markets worldwide by 2020. Liquidity management is a process to make cash available then and there it is required, and to make the efficient profitable use of any cash surpluses while avoiding idle liquid cash. An effective profitability management is equally important as the liquidity management, as it determines the sustainability and enhancement of the business enterprise. For any business the tradeoff between profitability and liquidity management is important. The current study considers 3 BSE Listed Automobile Companies among the top 10 in India for 5 years (2013-14 to 2017-18). The study aims to reveal the relationship between liquidity ratios and ROA and to study the impact of liquidity ratios on ROE of the selected companies.