It also addresses the growing demand for high-quality automotive steel in India, currently estimated at 7.8 million tonnes per year for flat steel, with an annual growth projection of 7%.
ArcelorMittal Nippon Steel India (AM/NS India) is set to commission a 2-million-tonne production capacity for advanced automotive steel at its Hazira plant by March. This initiative, aligned with the ‘Atmanirbhar Bharat’ vision, aims to replace imports of high-end steel for the automotive sector.
According to Indian Business, the company has invested ₹8,500 crore in the project, which is in the final stages of approval from various automobile manufacturers. The new production lines—a Continuous Galvanizing Line (CGL) and a Continuous Galvanizing and Annealing Line (CGAL)—are expected to be fully operational by 2025. These units incorporate technical expertise from parent companies ArcelorMittal and Nippon Steel and will produce steel with strength levels up to 1180 MPa, available in coated and uncoated variants.
This expansion builds on AM/NS India’s success with innovative products such as Optigal and Magnelis, launched last year. It also addresses the growing demand for high-quality automotive steel in India, currently estimated at 7.8 million tonnes per year for flat steel, with an annual growth projection of 7%.
Ranjan Dhar, Director and Vice-President of Sales and Marketing at AM/NS India, highlighted that approximately 15% of the automobile industry’s 8 million tonnes annual steel consumption is imported. He expects this figure to drop to zero as the new production lines become operational. Dhar added that the response from the auto industry has been highly encouraging, with AM/NS already supplying 1.2 million tonnes of auto-grade steel. The company aims to capture 30-35% of the automotive steel market.
Beyond this initiative, AM/NS India plans to increase its crude steel production capacity from 9 million tonnes to 15 million tonnes per year, backed by an investment of over ₹60,000 crore.
At the ongoing Bharat Mobility Global Expo, AM/NS India is showcasing its differentiated automotive solutions, including ArcelorMittal’s Multi-Part Integration (MPI) offerings. MPI solutions promise cost efficiency, streamlined processes with integrated component designs, and modular adaptability for various automotive applications.
