The automotive market is seeing strong growth driven by an expanding economy. The auto industry accounts for seven per cent of the gross domestic product. There has been an increase in foreign direct investment, with OEMs expanding manufacturing facilities. India will grow at 11.5 per cent in light vehicle sales, from three million to 5.3 million. Cars, hybrids and BEV and CNG vehicles too will be witnessing a positive trend.
Automakers are accelerating their shift to aluminum away from other materials for new car and light truck construction, as they seek to safely and cost-effectively lower the weight of vehicles and provide consumers with fuel-efficient vehicles they demand.
New, stringent fuel economy regulations, coupled with increasing consumer demand for more fuel-efficient vehicles, is inducing automakers to move quickly with a total rethinking of vehicle design as they also push ahead with alternate powertrains, new technologies and advanced materials. In terms of boosting fuel economy and cutting tailpipe emissions, aluminum offers automakers the fastest, safest, most environmentally-friendly and cost-effective way to get the job done. Low-density aluminum is a game-changer and automakers are taking full advantage of all the consumer benefits it provides.
India has seen a major increase in exports of cars of Ford, Honda, Nissan, etc. These companies, too, have planned to increase production from their India-based facilities.
Indian aluminum companies have put their faith in a large increase in the use of aluminum in the automotive, aircraft manufacturing and construction sectors in the US and European countries. The average aluminum content in a car, for example, will rise to 250 kg by 2025 from less than 125 kg now.
Aluminum indeed offers a wide scope for manufacturers to capitalize on the future demand.
By Venkatesan Subramanian, Vice President, Global Leader – Metals & Minerals Division, Frost & Sullivan