A STUDY ON LIQUIDITY MANAGEMENT IN AUTOMOBILE SECTOR WITH REFERENCE TO TATA MOTORS

Abstract

Financial stability and efficient operations depend on how large corporations manage their liquidity, and Tata Motors is no exception. In the capital-intensive and fast-paced automotive business, Tata Motors meticulously controls its cash flow to keep its day-to-day operations running. The company can take care of its immediate obligations, increase its working capital, and be prepared for unforeseen challenges if it meticulously records its financial inflows and outflows. Cash flow forecasting, accounts receivable and payable tracking, inventory management, and the use of short-term borrowing as necessary are its primary strategies. Tata Motors is able to adapt swiftly to market shifts and seize new investment opportunities thanks to these strategies, which help reduce financial risks. The capacity to grow and maintain dominance in the auto industry is directly correlated to the quality of the company's liquidity management.