BL reported that the price cut announced by Indian steel makers last week has not helped auto component manufacturers as they are mostly using alloy steels for making components.

Automotive Component Manufacturers Association of India vide a release said that “Auto component industry largely utilizes alloy steels for manufacturing high value added and safety critical components such as drive, transmission and steering systems, chassis and suspension parts and a variety of engine parts. The steel is used initially for making forgings or alloy steel castings, which is then machined to produce fully finished auto components.

Mr Sanjay Labroo president of ACMA said that “These alloy steels have not been impacted by the price cuts.”

Mr Srivatsaram chairman of ACMA South has called for an immediate reduction of Customs Duty on all grades of alloy steel to zero and to suspend export benefits on exports of alloy steels.