AM/NS India to Launch 2 Million Tonne Automotive Steel Capacity

AM/NS India to Launch 2 Million Tonne Automotive Steel Capacity

ArcelorMittal Nippon Steel India (AM/NS India) is set to significantly expand its footprint in the domestic automotive steel market with the commissioning of a new 2 million tonne production capacity at its Hazira plant by March 2025. This move, which involves an investment of ₹85 billion, aims to eliminate India’s reliance on imported steel in the automotive sector, aligning with the government’s ‘Atmanirbhar Bharat’ initiative to strengthen the country’s self-sufficiency.

The new production capacity will be dedicated to manufacturing advanced automotive steel products. The expansion includes the installation of two key units: a Continuous Galvanizing Line (CGL) and a Continuous Galvanizing and Annealing Line (CGLA). These units will be equipped with cutting-edge technology, leveraging expertise from both ArcelorMittal and Nippon Steel, to produce high-strength steel with tensile levels reaching up to 1180 MPa in both coated and uncoated forms. The automotive industry in India currently consumes around 7.8 million tonnes of steel annually, a number expected to grow by 7 percent each year. However, approximately 15 percent of this demand is met through imports. With the new production lines in place, AM/NS India intends to reduce this import dependency and provide the industry with domestically produced, high-quality steel. The company has already made headway in this space, having supplied 1.2 million tonnes of auto-grade steel, with plans to capture 30-35 percent of the domestic auto-grade steel market.

Ranjan Dhar, Director and Vice-President of Sales and Marketing at AM/NS India, highlighted the importance of this expansion, noting that the move would not only meet growing demand but also offer a cost-effective solution for automakers, reducing the need for imports and improving India’s competitive edge in the global automotive market. In addition to the automotive steel project, AM/NS India has ambitious plans to ramp up its overall crude steel production capacity to 15 million tonnes per annum by 2026, a significant increase from its current capacity of 9 million tonnes. This expansion, which will involve an investment of over ₹600 billion, reflects the company’s long-term commitment to supporting India’s industrial growth. The company is also showcasing its advanced automotive solutions, including ArcelorMittal’s Multi Part Integration (MPI) solutions, at the Bharat Mobility Global Expo. These innovations promise to offer automotive manufacturers cost efficiencies, reduced production costs, and streamlined processes, positioning AM/NS India as a key player in the evolving automotive steel market.