Factors Influencing the Profitability of Selected BSE-Listed Four-Wheeler Electric Vehicle Manufacturing Companies in India

Abstract

The rapid growth of the electric vehicle (EV) industry has transformed the Indian automobile sector by creating new opportunities for technological innovation, sustainable manufacturing, and long-term business growth. As automobile manufacturers increasingly shift their focus toward electric mobility, understanding the factors that influence profitability has become essential for ensuring financial sustainability and maintaining a competitive advantage. Against this backdrop, the present study examines the factors influencing the profitability of selected BSE-listed four-wheeler electric vehicle manufacturing companies in India, with particular reference to Tata Motors Limited, Mahindra & Mahindra Limited, and Maruti Suzuki India Limited. The study adopts a quantitative research approach based on secondary data collected from the published annual reports and audited financial statements of the selected companies for a period of ten years. A comprehensive set of financial and operational performance indicators is considered to evaluate the determinants of profitability. Exploratory Factor Analysis (EFA) is employed to identify the underlying dimensions by grouping related financial variables into meaningful factors that explain the profitability performance of the selected companies. The findings indicate that profitability is not determined by a single financial measure but by the combined influence of financial performance, operational efficiency, market valuation, capital structure, liquidity, and resource utilization. The extracted factors provide a comprehensive understanding of the financial characteristics that contribute to sustainable profitability in the Indian four-wheeler electric vehicle manufacturing sector. The study offers valuable insights for corporate managers, investors, financial analysts, and policymakers in developing effective financial strategies, improving operational performance, and strengthening long-term competitiveness. Furthermore, the research contributes to the growing body of literature on electric vehicle manufacturing by providing an integrated framework for understanding the multidimensional factors that influence profitability, thereby serving as a useful reference for future academic research and strategic decision-making in the rapidly evolving electric mobility ecosystem.