The article examines how India's economic reforms affected productivity in its automobile companies. By using the Malmquist Productivity Index, the researchers analyzed changes in technical efficiency and overall productivity. The results showed that most Indian automobile firms need to improve their total factor productivity (TFP) and focus on enhancing both technical progress and efficiency. Despite advancements in technology, the benefits were not fully translated into productivity gains due to a lack of efficiency improvements. To achieve long-term balance in TFP growth, specific policies are needed to boost technical progress and efficiency changes in these companies.