At a per-unit-level, nearly 840kg of steel goes into each compact car. On average, this alloy accounts for 60% of a vehicle’s weight. Most of this steel is used in the body, closures, and vehicle frame, including powertrain, engine, tires, and suspension system components. Not surprisingly, the automotive industry contributes about 10-12% of the overall steel demand in India. The majority of new vehicles use advanced high strength steels.

Need for steel industry to scale production

A thriving industry like the automotive sector needs a steady and timely supply of high-quality automotive steel. The country's steel production capacity stands at 143.91 million tons; the private sector accounts for more than four-fifths of this output. The top steel producers, including private and public sector players, have significant throughputs, with respect to automotive steel of every variety – light, mid, and high-strength. It’s certainly one of those win-win scenarios.

In order to make the best use of this favorable circumstance in the steel marketplace, India’s steel manufacturers would need to ramp up production by a factor of 2 or even 3 in order to keep pace with the auto sector that is gunning for growth. Apart from streamlining production, it’s important that steel industry participants offer comprehensive solutions that address all of their clients’ steel requirements. After all, one size doesn’t fit all. For instance, MSMEs have high quality, cost and delivery expectations. They like to work with steel solution providers who can also provide after-sales insights and inputs. So, the industry definitely needs to do a lot more in order to exceed the demands of various clients, especially micro, small and medium businesses. For consultation and assistance, contact JSW One.

Focus on sustainability

While pursuing rapid growth, steel makers need to embrace eco-friendly initiatives that will help make the industry more sustainable. At JSW, we design products keeping in mind the need to protect the environment and reduce consumption of scarce natural resources. By its very nature, steel is a one-of-its-kind sustainable material. Once it is made, it can be recycled, almost infinitely. Even so, we are committed to continuously pushing the envelope of possibility in the sustainability area.

More recently, electrical grade steel developed by our researchers is helping reduce power losses and our greenhouse gas footprint. Our Platina tinplate steel, another recent product, is targeted at the packaging industry and is considered a better and sustainable alternative to single-use plastic. For context, India has pledged to eliminate single-use plastics by 2022.

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