Essar Steel aims to capture 25% of market share in auto-grade steel segment

Essar Steel aims to achieve market share of 25% in auto-grade steel over the next couple of years. Currently, Essar Steel enjoys 18-20% of market share. It plans to achieve this target through strategic alliances, new product development and Value Analysis Value Engineering(VAVE)  to comply with the new emission norm for auto sector.

Indian auto sector is at the cusp of massive growth and is projected to manufacture 5 million cars in the next 3-4 years. Even the commercial vehicle segment is growing at over 10%. The new steel policy envisages that the steel demand for auto industry will be in the band of 10MT by 2030. Union Steel Minister Mr Chaudhury Birendra Singh has also highlighted that the value addition for auto should be fast-tracked in the country.

Vikram Amin (ED, Strategy & Business Development, Essar Steel India) said, “Auto is a very promising sector and we at Essar Steel would like to certainly capitalize on our expertise to develop innovative products and our ability to commercialize these products in our world-class facilities.”

Essar Steel has the first mover advantage, having set up seven steel processing facilities in major auto hubs including Gujarat. It has developed various new high-strength products for auto sector to reduce weight of vehicles and increase fuel efficiency.

Essar Steel has designed new-generation crash resistant steel, high-strength cold rolled steel and dent-resistant steels. High-strength hot rolled steel  for long members were developed for the first time and used by major auto-makers, giving them substantial reduction of 17-20 percent in weight.

Essar Steel has been awarded by many of its leading customers like Maruti, VE Commercial Vehicles, Tata Motors, Maxion among others for its  quality and timely delivery.