High tensile steel usage to increase in Indian automotive sector

With the percentage of Indian vehicles built on global platforms set to rise from 46 percent in 2014 to 63 percent by 2020, upcoming regulatory requirements of frontal and side crash as well as fuel efficiency and emissions will have to be met in new model launches.

New crash regulations come into force from October 2017 onwards for new models with one- year extension given for existing vehicles to equip themselves for meeting the new norms.

This would necessitate usage of higher usage of high-strength steel with reduced thickness in the automobile thereby lightweighting the vehicle as well, said speakers at the first Automotive Steel Summit held in Delhi today.

The Indian steel industry, which currently has a production capacity of 100 million tonnes of steel, contributes 10 percent of its steel to the automotive industry and ranks fourth in the pecking order globally after China, Japan and USA. It is set to emerge at second place by 2017, according to the speakers at the form, as a capacity of 20 million is under installation with about 4 new blast furnaces also to be built. This will help meet the increased need for higher strength steel for the auto industry.

However, for the steel capacity to be utilised optimally, more infrastructure development is required to boost vehicle growth, since higher investments will have to be made in advanced technologies for developing high grades of steel and manufacturing processes. Therefore, margins have to be assured to steel companies for which a close symbiotic relationship between vehicle manufacturers, auto component industry and the steel industry will have to be maintained.

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