Corporate social responsibility (CSR) is a self-regulating business approach that benefits a corporation be socially responsible—to itself, all its stakeholders, and the public. By committing to corporate social responsibility, corporations can be mindful of the kind of influence they are having on all aspects of society, comprising economic, social, and environmental. The Companies Act, 2013 has framed Section 135, for Corporate Social Responsibility Rules, 2014 and Schedule VII which proposes mandatory provisions for Companies to fulfil their CSR. This paper analyses the potential implications of Section 135 on firm’s financial performance, the likely responses of major corporates in the Indian automobile industry coming under this Section, the kinds and level of CSR activities done by these corporates and challenges of implementation of prescribed CSR spending under the advised rules of section 135. This research study is secondary based and exploratory or diagnostic in nature. The CSR activities of the major players in the Indian automobile industry, specifically, TATA MOTORS, MARUTI SUZUKI, and MAHINDRA & MAHINDRA were scanned to gain insights into these matters. A comparative analysis of these three major players was done in terms their expenditure on CSR activities in the last three year period. Finally, impact assessment of these CSR activities was also examined.