BL reported that TATA Steel, which supplied 800,000 tonne to the auto sector last fiscal, a 12% fall from 900,000 tonne in 2007-08, expects flat supplies of steel to auto segment in India in the current financial year. Mr Peeyush Gupta chief of Marketing & Sales Flat Products of TATA Steel said that “We expect it to remain the same this year.”
The report added that even while vehicle production grew 3% in 2008-09 to close at 1.12 crore units, the consumption of steel just did not keep pace. Sources said that this occurred largely due to the commercial vehicle segment which, as a major steel consumer, had a tough year and fell 24% to close at 417,000 units. It was worse with medium and heavy commercial vehicles which saw a 35% drop to 193,000 units. About 55% of a vehicle’s parts are made of steel. As per report TATA Steel with a 40% share, it is the market leader among steel suppliers to the Indian automotive industry.
