| Competitiveness is the ability of firms, to perform better than rivals, where performance is dependent on both financial and non-financial conditions of the firm. This study empirically examined the financial competitiveness of Indian automobile companies, for the period from 2001-02 to 2015-16. Out of 42 variables, 13 factors were extracted and these thirteen factors, put together, explaind 76.122 per cent of the total variance. Factor analysis was applied, to identify the factors that significantly contributed to the financial competitiveness. The result indicated that among the three sectors, passenger cars and multiutility vehicles sector were most dominating, followed by two and three wheelers sector and commercial vehicles sector. The commercial vehicles sector was obviously ruled by Eicher Motors Ltd whereas passenger cars and multi-utility vehicles sector was dominated by Honda Siel Cars India Limited and Maruti Udyog Limited. The result of this study would help consumers, to judge the competitive performance of these firms, from the product quality and investment point of view.
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