As the nation embraces a shift towards clean energy and sustainable transportation, the revolution of electric vehicles is catalysing a new era of growth and innovation in the Indian steel industry. Electric vehicles are the future. As the world is experiencing climate change, demand for low-emission commuting and support from the government through subsidies and tax rebates have made manufacturers switch to electric vehicles. The Indian steel industry, a significant contributor to the global steel market, is encountering a transformative phase with the rise of electric vehicles.
The current landscape
India stands as the world’s second-largest producer of steel, with an impressive output of 125.32 mt of crude steel and 121.29 mt of finished steel as of financial year 2023. This robust production is poised to encounter an insignificant shift in the burgeoning electric vehicle market.
Impact of electric vehicles on steel demand
Electric vehicles require lightweight yet durable materials. Advanced High-Strength Steel meets this demand, offering strength without the additional weight. These vehicles utilise unique components, requiring specific steel types, catalysing a rise in speciality steel production.
Future Outlook in India and Opportunities
The electric vehicle market in India is experiencing unprecedented growth. In 2022, the Indian electric vehicle market reached USD 3.21 billion, with projections soaring to USD 113.99 billion by 2029, showcasing a remarkable CAGR of 66.52%. Electric two-wheelers dominated the market with a 63% share, followed by electric three-wheelers at 30%. As of 2023, electric vehicle sales in India surged by 41%, exceeding 109,000 units compared to the previous year’s 77,000 units.
India’s steel production is estimated to grow 4-7% to 123-127 mt in the financial year 2024, and the demand for finished steel is expected to rise to 230 mt by 2030-31. This growth is fueled partially by the expanding electric vehicle market.
Sustainability: A core focus
The drive towards sustainability is a key factor influencing the industry’s evolution. With global emphasis on reducing carbon footprints, Indian steel manufacturers are increasing their focus on sustainability practices. The shift is not just a response to environmental concerns but also a strategic move to align with global trends.
The growth of the electrical vehicle industry significantly impacts the Indian steel industry. The expansion of the electric vehicle industry drives demand for specialised steel products that encourage the Indian steel industry to innovate and upgrade, potentially leading to increased competitiveness in the global market. Its growth not only increases the demand for steel but also opens up new markets and opportunities for steel manufacturers. By supplying materials essential for electric vehicles, the Indian steel industry contributes to reducing carbon emissions and fostering a cleaner environment. These factors position the Indian steel industry for robust growth and sustainable development in the years to come.
Application of our products
Among the materials used in the construction of electric vehicles, our products have emerged as game-changers. The application of our product in the making of car body frames, and bus body frames provides a strong backbone to the vehicle, ensuring its strength and durability remain intact. With the growth of the industry, our products are becoming more significant in the industry. Besides being structurally and economically advantageous, our products also align with the environmental and safety goals of electric vehicles.
Navigating the future with Grow Ever Group
As the revolution of electric vehicles continues to reshape the steel industry, Grow Ever Group stands at the forefront of this transformative era. With a focus on advanced high-strength steel products, we capitalise on the increasing demand for lightweight, durable, and efficient materials. By investing in research and development, and aligning with global sustainability trends, we ensure that our products meet the evolving needs of the electric vehicle industry. As the Indian steel industry gears up for a significant growth trajectory, we have the opportunity to expand our reach through strategic collaborations with electric vehicle manufacturers and stakeholders. Our commitment to sustainability is not just an environmental consideration but also a strategic business decision. As we embrace this new era of mobility, we stand ready to support and innovate, driving the change towards a greener, more efficient world.
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