India’s Transport Ministry seeks explanation of differing usage of galvanized steel in automobiles

Wednesday, 30 January 2019 11:47:10 (GMT+3)   |   Kolkata

India’s Ministry for Surface Transport has sought an explanation from domestic automobile manufacturers regarding the 30 percent usage of galvanized steel in manufacturing an automobile for the domestic market, while the same model of automobile for export uses around 70 percent galvanized steel, a ministry official said on Wednesday, January 30.

The official said that the automobile manufacturers’ view on the different usage rates of galvanized steel for manufacturing automobiles for the domestic and export markets is part of the government’s consultation process aiming to make 70 percent usage of galvanized steel mandatory for all vehicles.

The views of the automobile manufacturers will be matched with the report being prepared by the International Center for Automotive Technology, as mandated by the Indian government, the official said.

According to the official, during the consultation process since last year, domestic auto manufacturers have maintained that there no definitive cost-benefit analysis has been done on the government proposal for mandatory 70 percent usage of galvanized steel and higher manufacturing costs in using such steel could be absorbed in the export markets, adding that the Indian market is “cost sensitive” and Indian manufacturers will not be able to pass on higher costs to consumers.

Also, it has been indicated that higher usage of galvanized steel in auto chassis will have an impact on warranties, the periods for which differ vastly between India and overseas markets, the official said.

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