Steel-makers gear-up to keep pace with auto demand

Though a large portion of the steel used for manufacturing vehicles is currently imported, steel makers are now investing heavily in fresh cold-rolled (CR) steel, used by the auto and white goods sectors. The gross demand from the auto industry - the second largest (after construction) at nine per cent of steel consumption, is expected to cross 10 million tonnes per annum (MTPA) by 2016, from the current 6.7 MTPA.

“With all major car manufacturers setting up new production facilities to cater to both the domestic as well as export markets, India is likely to become a global manufacturing hub very soon. Neither SAIL nor any other major steel producer can afford to overlook such an important sector,” Mr C S Verma, Chairman, SAIL told Business Line.

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