Impact of Steel and Rubber Industry on Automobile Sector

India is one of the fastest growing economies of today’s world. In such a scenario, it is quite imperative for industries to overlap and affect each other. For instance, airlines industry is impacted by crude oil. Their relation is calculated using simulation methods, which is used in predicting costs. With respect to the automobile industry, the same can be said for steel and rubber as these two are major components used in manufacture of vehicles. Using statistical tools, this paper has attempted to establish a relationship of automobile industry with steel and rubber industries. It has taken into account five Indian companies for each industry, viz. Maruti Suzuki, HeroMotocorp, Hindustan Motors, Tata Motors and Mahindra & Mahindra for the automobile industry. The findings of the paper can be utilized in separately predicting stock market changes in the Indian automobile industry given the changes in rubber and steel industry.