This study examines the Capital structure and its determinants of Automobile companies listed in India using panel data analysis. The data was taken from secondary data source named as “Industry; financial aggregates and ratios” (PROWS) of center for monitoring Indian economy (CMIE) covers 58 Indian Automobile companies listed on the Bombay Stock Exchange covering the period from 1997-98 to 2010-14 (17 years). Fixed effects regression model was used for the analysis of penal data of sample companies The empirical Results shows that the variables of profitability, size, tangibility, growth, and non-debt tax shield are negatively related with leverage and risk and liquidity are positively related with leverage. Profitability is statistically significant determinants of capital structure. While on the contrary, size, tangibility, growth, risk, non-debt tax shield and liquidity are statistically insignificant determinants of capital structure. The results are generally consistent with theoretical predictions as well as previous research papers. This paper adds to the existing literature on the relationship between the firm specific factors and leverage

KEYWORDS: Automobile firms, Capital Structure, Leverage, Pecking Order Theory.