The recent price cuts in steel announced by Tata Steel have given Indian automobile manufacturers a much-needed breathing space.

The majority of Indian automakers – including Tata Motors, Maruti, Hyundai and Toyota – source their steel requirements from Tata Steel.

Tata Motors itself is expected to save more than INR200 million (based on the quantity of steel consumed in FY 2003-04) thanks to the price cuts. This will help the company in its cost reduction initiatives. Tata Motors is one of the largest consumers of steel inIndia as both its passenger car division and commercial vehicle division use the material. In fact, Tata Motors is expected to generate more savings from its commercial vehicles division as that buys a greater volume of steel from Tata Steel than the passenger car division does.

Tata Steel has reduced prices by INR2,000 per tonne. This is the first reduction after a slew of increases during the last year, which out manufacturers’ margins under pressure and resulted in car prices being hiked a couple of times.

Even now, analysts point out, steel prices of steel are higher than last year and there is scope for them to reduce further.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.