2025, Vol. 8, Issue 1

author(s)
Deepti Priyadarshini

abstract
This study explores the impact of digital transformation, particularly e-commerce adoption, on working capital management within India's automotive sector. The automotive industry, a cornerstone of the Indian economy, is undergoing significant technological evolution, driven by the rapid integration of digital platforms. E-commerce, as a vital component of this transformation, is redefining supply chain dynamics, customer engagement, and inventory management practices. This research examines how digital tools and online platforms influence key working capital components such as inventory turnover, receivables, and payables. By employing a mixed-methods approach, combining quantitative financial data from leading automotive firms with qualitative insights from industry professionals, the study identifies the mechanisms through which digital adoption enhances operational efficiency and financial agility. Findings indicate that e-commerce enables more accurate demand forecasting, streamlined procurement processes, and faster cash conversion cycles, thereby improving working capital performance. However, the transition also presents challenges, including the need for digital infrastructure, cybersecurity concerns, and the upskilling of the workforce. This study contributes to the literature by bridging the gap between digital transformation and financial management in the context of a rapidly evolving industry. It offers strategic insights for automotive firms seeking to leverage digital tools for optimizing financial performance and gaining a competitive edge in the post-pandemic market landscape. Policymakers and stakeholders can also benefit from understanding the broader implications of e-commerce on industrial financial health and economic growth.