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Indian automakers staring at production stoppage due to restrictions on steel imports - SIAM

Steel News - Published on Tue, 15 Jan 2019

Image Source: Livemint
Economic Times reported that automobile industry body SIAM said vehicle manufacturers are staring at production stoppage if there is no resolution of the issues over restrictions imposed on domestic manufacturers using imported steel. Last month, the government had extended the deadline for automobile makers to use Bureau Auto industry sources said there was no incentives for of Indjan Standards Certified locally the foreign steel makers to get BIS certification as produced high grade steel locally soon citing inconsistent quality.

Mr Rajan Wadhera Society of Indian Automobile Manufacturers President told reporters that "Yes, our production will get hampered if it is not resolved. We are making representation to the government regarding the matter.” He further said nearly 90 per cent of the steel used in automobile production is manufactured in India and only around 10 per cent of high grade steel, which is used for meeting safety standards among others, is not manufactured here.

Mr Wadhera added that "These are imported from abroad as there is no economy of scale to manufacture these in India. We are talking to the government to resolve the issue.”

Moreover, he said there were issues with the quality and consistency of locally produced such high grade steel.

Auto industry sources said there was no incentives for the foreign steel makers to get BIS certification as volumes are low in India.

In June last year with an aim to promote locally manufacturing: the steel ministry had mandated BIS certification for the commodity to be sold in India. This included both for domestically produced and imported steel.

Source :

Posted By : Ratan Singh on Tue, 15 Jan 2019
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