The present study focuses on operational and financial performance of Indian automobile sector taking into account 8 major auto manufacturing companies. The automotive industry of India rank is the 5th of emerging countries, after Korea, Brazil, Mexico and China. The study also sheds light on the actual economic dynamics of the phenomenon of industrial emergence, especially on how firms and the industry in the country have followed specific technological and competition vs. partnerships strategies, the achievement and outcome of those strategies, the way companies both domestic and foreign in the car business have been able to catch up with the standards set by world leading companies. The study highlights the trajectories of exiting from former centralized models of industrialization in different countries. In that respect, India largely shows a companies-driven trajectory of competition and diversification despite some remaining factors of protection. So far the profitability ratios are concerned, Operating margin, Gross margin, Net margin and Adjusted cash margin found very high in the Bajaj   Holding and Investment Co. Ltd. with high volatility as the mean value and CV of these ratios were very high. Moreover, the study concluded that Short-term financial position of Maruti Suzuki India Ltd seems to very good as compared to other selected companies. The study reported highest dividend payout ratio of Ashoka Leyland followed by Hero Honda Ltd. and Bajaj Holding and Investment ltd. respectively. Whereas this ratio remained more volatile in the companies viz., Hero Honda India Ltd., TVS Motors ltd. & Bajaj Holding and Investment ltd. The study stated that Maruti Suzuki India Ltd. had remained in the first position to retain the net earning and cash earning. Subsequently Mahindera & Mahindera and Tata Motors were in the second and third place for retaining earning and cash earnings. The auto sector serves as a good illustration of the linkage between the gradual and phased out opening of economies on the one hand, and the companies’ objectives and steps of industrial catching-up on the other. This directly relates to the current question of the existence or not of some room for these industries to take significant market shares of the world market. Finally, the study expects that auto industry is bracing for a slowdown in demand with banks saying that they may be forced to increase loan rates due to monetary policy’s reviews from time to time since Jan 2010. Auto manufacture industry sales and new purchases might be affected due to fuel prices rising and high inflation coupled with higher interest rates on loans.