The Indian automotive industry is set to receive a significant boost from ArcelorMittal Nippon Steel India (AM/NS India), a leading integrated flat steel producer. Currently, AM/NS India has a crude steel capacity of 9 million tonnes per annum and a pellet capacity of around 20 million tonnes. The company plans to enhance its capacity and product offerings to meet the growing demands of the automotive sector.
At the heart of this transformation is the Hazira plant in Gujarat, which will see the addition of a new 2 million tonne cold rolling mill and an upstream hot strip mill. These expansions, targeted at the automotive industry, aim to increase the plant’s capacity from 9 million tonnes per annum (MTPA) to 15 MTPA, with an investment of Rs 60,000 crore. This move will bring world-class technologies and products to the Indian market, reducing the need for imports and fostering innovation.
The timing is crucial, as the demand for high-performance steel in the automotive sector is rising, constituting about 60% of a vehicle’s body structure. The specialty steel segment is expected to grow at a compound annual growth rate (CAGR) of 7-8%, driven by the adoption of electric vehicles (EVs) and other advanced technologies. The new cold rolling mill will address the specific steel needs of EVs, providing a domestic source of advanced materials and reducing reliance on imports.
Lakshmi Mittal, Executive Chairman of ArcelorMittal, highlighted that the first phase of the Hazira plant’s expansion will be completed by 2026, with a further phase aiming to expand the facility to 24 MTPA by 2029, potentially making it the world’s largest steel plant. This expansion will introduce globally utilised specialty steel products to India, supporting both internal combustion engine (ICE) vehicles and EVs, and positioning the domestic automotive industry for global competitiveness.
