The Indian automobile industry is a key contributor to the country’s GDP, employment, and industrial growth, with strong linkages to related sectors. However, it remains vulnerable to economic cycles, fuel price fluctuations, government policies, and technological shifts like electric and autonomous vehicles. This study, titled “Risk and Return Analysis of Selected Automobile Companies in India,” evaluates the financial performance of ten listed companies from 2020 to 2024 using tools like Beta, Standard Deviation, Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha. The findings reveal diverse risk-return profiles: Tata Motors showed the highest return but also the highest risk, suiting aggressive investors; Maruti Suzuki and Toyota offered stable, low-risk returns ideal for conservative investors. Mahindra & Mahindra and TVS Motor provided a balanced risk-return mix, while Hero MotoCorp showed poor risk-adjusted performance. Companies like Bajaj Auto, Eicher Motors, and Ashok Leyland were found suitable for risk-neutral investors. The study also highlights the impact of COVID-19 and semiconductor shortages on supply chains, emphasizing the need for stronger risk management. The shift toward green and electric mobility further adds complexity to investment decisions. Overall, the research offers strategic insights for investors, corporate managers, and policymakers in navigating the evolving auto sector.