Adopting an 'auto culture' across the entire value chain is essential for meeting industry requirements, says AM/NS’s Ranjan Dhar.
30 Jan 2025 | 1919 Views | By Shahkar Abidi
According to Ranjan Dhar, Director and Vice President of Sales and Marketing at ArcelorMittal Nippon Steel India. “Steelmakers eyeing the automotive sector must look beyond the product itself and adopt a comprehensive approach that integrates service and ecosystem considerations. Unlike commodity steel, automotive-grade steel demands an organizational transformation—a “cultural shift” ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
According to Ranjan Dhar, Director and Vice President of Sales and Marketing at ArcelorMittal Nippon Steel India. “Steelmakers eyeing the automotive sector must look beyond the product itself and adopt a comprehensive approach that integrates service and ecosystem considerations. Unlike commodity steel, automotive-grade steel demands an organizational transformation—a “cultural shift” that permeates all aspects of operations.”
Speaking at the Bharat Mobility Expo 2025 in New Delhi, Dhar identified three pillars for success in the competitive automotive steel market: Culture, capacity and technology. "All three are extremely critical," Dhar told Autocar Professional, stressing the importance of aligning organizational practices with the unique needs of the automotive industry.
India's automotive steel market currently stands at 7.8 million tonnes per annum (MTPA) for flat steel and is projected to grow by 6-7% annually. This growing demand has catalyzed a shift in how steelmakers approach the automotive sector.
Central to this transformation is the concept of co-creation, where steelmakers collaborate closely with automakers to develop tailored solutions. Unlike traditional practices where products are developed in isolation, co-creation involves jointly addressing challenges in materials, logistics, and even customer service. For instance, automotive steel requires meticulous handling—covered transportation and dust-free environments are the norm—underscoring the high standards demanded by the industry.
Dhar further emphasized that the entire value chain must embody this "auto culture." From production facilities to logistics networks, the sector’s stringent requirements necessitate a holistic approach that ensures reliability, quality, and precision. For steelmakers seeking to enter or expand in this space, adopting this ethos is not just an advantage—it is a prerequisite.
Localisation strategy:
ArcelorMittal Nippon Steel India (AM/NS India) – a joint venture between ArcelorMittal and Nippon Steel – is leading the charge in domestic production capabilities. The company is set to commission two state-of-the-art production lines dedicated to manufacturing advanced automotive steel products this year.
These new lines – a Continuous Galvanizing Line (CGL) and a Continuous Galvanizing and Annealing Line (CGAL), embedding the technical know-how of the parent companies – are expected to be fully operational in 2025.
These two facilities will be part of the upcoming Cold Rolling Mill 2 (CRM2) complex at its flagship plant in Hazira, Gujarat. The two units will enable the production of ArcelorMittal as well as Nippon Steel’s licensed products, with strength levels up to 1180 MPa, in both coated and uncoated steel. This initiative builds on the previous success of AM/NS India with the introduction of Optigal and Magnelis last year.
Dhar noted that two decades ago, a significant portion—40-50% or more—of India's automotive steel was imported. Over the years, domestic producers have reduced this dependence, but around 15-18% of high-end automotive steel is still imported due to its advanced applications and unavailability in India. However, AMNS India, Dhar claims, is changing this narrative. With cutting-edge facilities being developed at Hazira, set to begin operations as early as March this year, the company aims to eliminate the need for imports within a few years.
Regulations and consumer awareness leading to safer products:
Dhar acknowledged significant strides, driven not only by regulations but also by growing consumer awareness. This shift has pushed automotive companies to prioritize safety, which, in turn, relies heavily on advanced steel for crash-resistant designs.
He also addressed concerns about cost, given India's price-sensitive market. While advanced automotive steels come at a premium, they offer long-term benefits such as weight reduction and enhanced safety. This not only reduces steel consumption per vehicle but also allows automakers to charge a premium for safer cars, creating a win-win scenario for manufacturers, consumers, and steel suppliers.