AbstractFundamental analysis is the examination of the underlying forces that affect the wellbeing of the economy, industry groups, and companies. As with most analysis, the goal is to derive an actual picture of the current scenario persisting in the company or industry and with this trend future value can be ascertained for better investments. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy. To forecast future stock prices, fundamental analysis combines economic, industry, and company analysis to derive a stock's current fair value and forecast future value. The Indian Automobile industry has a growing potential on comparison with other developing countries . The automobile industry accounts for 22 per cent of the country's manufacturing gross domestic product (GDP).To match production with demand, many auto makers have started to invest heavily in various segments in the industry in the last few months. The industry has attracted foreign direct investment (FDI) worth US$ 12,232.06 million during the period April 2000 to February 2015, according to the data released by Department of Industrial Policy and Promotion (DIPP).Keywords : Fundamental analysis, The Indian vehicle industry , Financial ratios.