Segment-Wise Demand Shocks and Working-Capital Stress in Indian Automobile Firms

This study developed a segment-sensitive accounting decision-support framework to examine whether retail vehicle-demand shocks anticipated next-quarter working-capital stress in the Indian automobile industry. The empirical design covered 2020Q1-2026Q2 and focused on Passenger Vehicles, Commercial Vehicles, Two-Wheelers and ThreeWheelers. The research question asked whether segment-level demand information improved early identification of inventory, cash-conversion and operating-cash-flow pressure beyond conventional accounting ratios.