A developed transportation system plays a pivotal role in the development of an economy. With the advancement of transportation system, the automobile industry of India is also growing at a high speed, occupying an important place in the Indian economy. Indian auto industry is now growing at a pace of around 18% per annum and has gradually emerged as a desirable destination for global auto players like Volvo, General Motors and Ford. During this period of global recession, Indian automobile companies should operate more efficiently to grab not only the indigenous market, but also the global market. An attempt has been made in this paper to evaluate the efficiency of the automobile companies using the popular nonparametric data envelopment analysis technique. This empirical study not only throws light on the technical efficiencies of the automobile companies, but also offers a few suggestions as to how an inefficient company may become efficient by overcoming its shortcomings.

A developed transportation system plays a pivotal role in the development of an economy. With the advancement of transportation system, the automobile industry of India is growing at a high speed, occupying an important place in the Indian economy. Since the first car was launched in Mumbai in 1898, the automobile industry of India has come a long way. The liberalization policy and various tax reliefs in recent years have made remarkable impacts on Indian automobile industry. Indian auto industry is presently growing at the pace of around 18% per annum and has become gradually a desired destination for global auto players like Volvo, General Motors and Ford. But during this period of global recession, Indian automobile companies should operate more efficiently to grab not only the indigenous market but also the global market.

An attempt has been made in this paper to evaluate the efficiency of automobile companies using the popular nonparametric Data Envelopment Analysis (DEA) technique. Fourteen Indian automobile companies are selected as per the latest sectoral indices of Bombay Stock Exchange (BSE). This empirical study not only sheds light on the technical efficiencies of the automobile companies, but also shows the way how an inefficient company may become efficient by overcoming its shortcomings.

Operations Management Journal, Relative Efficiencies of Schools, Data Envelopment Analysis, Government-Aided Schools, Linear Programming Model, Decision-Making Units, Organizational Units, Human Resources, Public Procurement Sectors, Government Schools, Education System.