SIAM Convention: Steel Industry Pledges To Make High-Grade Automotive Components, Cut Import Dependency

The Indian steel manufacturing sector is embarking on a new initiative to produce specialised premium-quality steel materials required for automotive manufacturing, aiming to decrease reliance on foreign suppliers, according to Union Minister H D Kumaraswamy's announcement on Thursday, news agency PTI reported.

For an extended period, the country has relied on international sources for premium steel grades essential for defence applications, strategic industries, and automotive component manufacturing. The demand for superior-quality steel continues to escalate as large-scale infrastructure projects are launched.

PLI Auto Scheme

Speaking at the Society of Indian Automobile Manufacturers (SIAM) annual convention, Minister Kumaraswamy, who oversees steel and heavy industries portfolios, mentioned the substantial progress in the Production Linked Incentive (PLI) automotive programme. 

By March 2025, participating companies have committed Rs 29,576 crore in capital investments, establishing new manufacturing facilities and implementing advanced operational technologies.

The PLI Auto initiative has generated substantial employment opportunities across multiple sectors, including direct manufacturing roles, supply chain operations, and research and development positions.

Steel Ministry Commits To Supporting Automotive Sector 

"As a minister of steel, I would also like to take this opportunity to assure the Indian auto industry that the steel ministry will provide all necessary support to the auto sector, and would be a stronger enabler of Make In India... the steel industry is looking at developing specialised steel, which is required for certain components or parts in the auto sector, so that this sector need not be dependent on imports to meet their specific high-grade steel requirements," Kumaraswamy stated in his video address.

Industry-Academia-Startup Collaboration

The minister emphasised that while governmental policy frameworks create favourable conditions, actual innovation emerges through collaboration between industrial enterprises, research institutions, and startup ecosystems.

"Our ministry is working closely with automakers, technology providers and energy companies to ensure that India meets its domestic sustainability goals and also becomes a global exporter of sustainable mobility solutions," he explained.

Kumaraswamy challenged industry stakeholders to pursue transformational rather than gradual improvements, encouraging them to embrace innovative approaches and position India as a worldwide leader in sustainable transportation solutions.

The Union Cabinet sanctioned the PLI Scheme for Automobile & Auto Components in September 2021, allocating a total budget of ₹25,938 crore for the initiative.