ArcelorMittal Nippon Steel India will commission 2 million tonne production capacity of advanced automotive steel products at its Hazira plant by March and believes that the auto industry need not import steel into India.

Once operational, the production will substitute imports of high-end steel required by the entire automotive sector, promoting ‘Atmanirbhar Bharat’ initiative.

The company has invested ₹8,500 crore in the new product that will cater specifically to the auto industry. It is in the advanced stage of getting its production approved by various automobile players.

The new lines – a Continuous Galvanizing Line and a Continuous Galvanizing and Annealing Line, embedding the technical know-how of the parent companies – are expected to be fully operational in 2025.

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.

The expansion aims to meet the growing demand for high-quality, value-added automotive steel in India, which currently stands at 7.8 million tonnes per annum for flat steel and is projected to grow by 7 per cent annually.

Ranjan Dhar, Director and Vice-President – Sales and Marketing, ArcelorMittal Nippon Steel India said the automobile industry currently imports about 15 per cent of its 8 mtpa of consumption and this can come down to zero once the company’s new production lines go on stream.

The response for the product from the auto industry has been very encouraging as the company is already supplying about 1.2 million tonne of auto grade steel, he added.

AM/NS expects to capture 30-35 per cent market share of the auto grade steel market.

This apart, the company also plans to increase its crude steel production capacity to 15 million tonne per annum from 9 mtpa this year with an investment of over ₹60,000 crore.

Meanwhile, AM/NS India is showcasing its differentiated automotive offerings along with ArcelorMittal’s Multi Part Integration solutions at the ongoing Bharat Mobility Global Expo. The MPI solutions offer several key benefits, including cost efficiency through reduced manufacturing costs, streamlined processes with multiple components integrated into a single design, and modular designs adaptable to various automotive applications.