Consumption of special steel in automobiles poised for growth

The Indian automotive and other sectors that consume special steel (alloy steel) are poised for good demand and growth, thanks to a proactive Budget and increasing economic activity, Sridhar Krishnamoorthy, Managing Director, Arjas Steel, said.

- Tamajit Pain

The farming and rural sector provides a robust tractor market segment. Investments in infrastructure, railways and energy are also going to provide impetus to alloy steel demand, he said.

“The push by government of India to be more local-focused is also embraced by India auto OEMs with an increased focus on localisation,” Krishnamoorthy said while speaking at the Indian Steel Markets Conference.

“The various trends that are impacting the automotive sector globally are also happening in India in terms of Electric Vehicles and will take time to fully take root. It will need charging infrastructure and newer and cheaper batteries,” he said.

Trends in automotive sector

Launch of scrappage policy

The scrappage program announced by the government have the dual aim of stimulating the automobile industry and removing inefficient, more polluting vehicles from the road.

This policy will go a long way in post Covid-19 automobile sector recovery plan. This policy also supports India’s ‘Green India’ mission as it creates space for a cleaner fleet of vehicles, Krishnamoorthy said.

Localisation of auto parts manufacturing:

In the spirit of Atmanirbhar Bharat and due to the disrupted global supply chain, many auto OEMs are looking to localise more percentage of their parts sourcing from India and also use India as an export base. “Also there is preference for personalised vehicles,” Krishnamoorthy added.

Exploring growth potential of alternative powertrains