The company has developed the new product for automotive manufacturers in response to market requirements for stronger and lighter steels.
"Currently, we enjoy 18-20 per cent of market share and aim to achieve market share of 25 per cent in auto-grade steel over the next couple of years. We plan to achieve this target through strategic alliances, new product development and Value Analysis Value Engineering (VAVE) to comply with the new emission norm for auto sector," a company official said here.
The domestic auto sector is at the cusp of massive growth and is projected to manufacture 5 million cars in the next 3-4 years. Even the commercial vehicle segment is growing at over 10 per cent. The new steel policy envisages that the steel demand for auto industry will be in the band of 10 MT by 2030.
The steel ministry has also highlighted that the value addition for auto should be fast-tracked in the country.
"Auto is a very promising sector and we would like to certainly capitalise on our expertise to develop innovative products and our ability to commercialise these products in our world-class facilities," Essar Steel India ED, Strategy & Business Development Vikram Amin said.
Essar Steel has the first mover advantage, having set up seven steel processing facilities in major auto hubs, including Gujarat. It has developed various new high-strength products for auto sector to reduce weight of vehicles and increase fuel efficiency.
The company has developed new-generation crash resistant steel, high-strength cold rolled steel and dent-resistant steels. High-strength hot rolled steel for long members were developed for the first time and used by major auto-makers, giving them 17-20 per cent reduction in weight.
Essar Steel has been awarded by many of its leading customers like Maruti, VE Commercial Vehicles, Tata Motors, Maxion, among others for its quality, Amin said.