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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65246
Volume:
10 |
6 |
Jun 2026
Pages:
1-9
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Masters of Business Administration (finance)
MLR Institute of Technology
Masters of Business Administration
MLR Institute of Technology
This study presents a comprehensive financial evaluation of Fixed Asset Management and Life Cycle Costing (LCC) practices at Tata Motors Limited across a five-year horizon from financial years (FY) 2021 to 2025. Fixed assets constitute the foundational infrastructure for heavy automotive manufacturing corporations; hence, optimizing their total cost of ownership is paramount for ensuring sustainable long-term financial health and operational performance. Utilizing structural secondary data extracted from auditing annual financial statements, balance sheets, and profit and loss accounts, this investigation deploys advanced financial indicators alongside structural matrix models for life cycle costing. The empirical outcomes demonstrate a robust strategic pivot executed post-FY22, transforming a deep net loss of ₹7,289.63 crores in FY21 into a resilient net profit of ₹7,902.08 crores by FY25. This structural turnaround was heavily driven by asset rationalization—characterized by a controlled contraction of fixed assets from ₹29,702.78 crores to ₹15,578.00 crores—improving capital efficiency indices and asset utilization rates. Concurrently, a linear increase in continuous operating and maintenance expenditures highlights critical operational bottlenecks requiring engineering interventions. The investigation concludes with actionable paradigms for predictive engineering maintenance, cloud-powered digital asset tracking, and green technology alignment to enhance future capital efficiency profiles.
KEYWORDS
● This project on Fixed Asset Management of Tata Motors provides a comprehensive view of how the company has managed its capital investments, operational expenses, and overall asset efficiency from FY 2021 to FY 2025. The analysis highlights a strategic shift from heavy capital spending to a more optimized and controlled asset management approach, especially visible in the reduced acquisition costs and stabilized depreciation. ● However, the consistent rise in operating and maintenance costs signals a need for better cost control strategies and increased efficiency in resource utilization. Tata Motors has shown improvements in financing cost management, which reflects better debt planning and financial discipline. ● Through this study, it becomes evident that adopting a full LCC approach helps Tata Motors not only in controlling costs but also in making smarter, long-term investment decisions. Implementing predictive maintenance, digital asset tracking, and sustainability-focused asset strategies will further strengthen its performance in the years to come. ● Overall, Life Cycle Costing proves to be a valuable tool for long-term planning, helping Tata Motors balance cost, performance, and profitability in a competitive and dynamic automotive industry
● International Accounting Standards Board (IASB) (1982) – IAS 16: Property, Plant, and Equipment. ● McNair, Lynch, & Cross (1990) – Linking Financial and Operational Measures in Asset Management. ● Kaplan, R.S. & Norton, D.P. (1992) – The Balanced Scorecard and Fixed Asset Utilization. ● Amadi-Echendu, J.E. (2005) – Definitions, Concepts and Scope of Engineering Asset Management. ● Garg, R. & Deshmukh, S.G. (2010) – Lifecycle Cost Analysis in Asset Management. ● Ngwenya, B. (2012) – Asset Management Practices in the Public Sector ● Liu, W., & Sun, Y. (2013). Accounting for Fixed Assets: A Global Standard Perspective. Public Sector Accounting Journal. ● KPMG (2018) – Best Practices in Asset Management.
Publication Date
6/22/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
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