Liquidity management is critical to the smooth operation and sound financial standing of large automakers such as Tata Motors. Since the car industry is capitalintensive and ever-changing, this study examines how Tata Motors manages its cash flow. With proper liquidity management, you can balance cash flow, meet short-term obligations, and maximize working capital. The study focuses on Tata Motors’ short-term finance instruments, inventory management, receivables and payables, and cash flow prediction. The study reveals that liquidity management helps businesses react to market and investment changes, minimize financial risks, and maintain growth. To do this, consider these methods. This analysis shows how Tata Motors uses liquidity management to strengthen its finances and compete in the auto market.