Gestamp bets on new safety norms to boost business, opens plant near Pune

The Indian subsidiary of Spanish automotive metal body component supplier Gestamp, which started business in 2010, has had a low-key presence in India so far. But in the past six months, it has seen more visitors from vehicle OEMs than in the past five years. The reason behind that is the growing focus of OEMs to make their vehicles meet the new crash regulations in India.

"We see an inflection point in body design coming soon," says Raman Nanda, country head and president, Gestamp Services India. According to Nanda, it will be difficult for vehicle OEMs to meet the new crash test norms with body structures made of cold-formed steel of current specifications. Hot stamped steel, which Gestamp specialises in, would be a good replacement as it helps a BIW (body in white) to be stronger and lighter compared to bodies made of cold-formed steel. A hot- stamped steel structure can be 1500 MPa in terms of strength. Currently, most of the mainstream cars have BIW made of cold-formed steel of 450-500 MPa specification, Nanda adds.

A body structure made of cold-formed steel can also meet the new crash norms but at the cost of extra weight as multiple layers will have to be added.

As the stringent BS VI emission regulation approaches, OEMs cannot afford to add weight to their vehicles as it will result in fuel efficiency loss and higher emission level. Gestamp sees this as a good opportunity to pitch for hot stamped steel body structures. "In the past six months, it (vehicle industry) has warmed up to it," says Nanda. Gestamp India currently supplies to Volkswagen, Ford, Tata Motors and Fiat Chrysler. As the industry "warms up", Gestamp has set up a new plant near Pune where trial production has already started. Till date, the Spanish supplier has invested Rs 1,100 crore in India, which happens to be its youngest market.