Japanese steel major JFE Steel and Sajjan Jindal-controlled JSW Steel will join hands with JSW steel and Bhushan Steel to produce automotive steel products in 2010. As per the Japanese companies India will soon prove to be a big market in the automobile sector.
India has always been strong in making small cars and in 2010 soon it will prove to be a big hub for small cars. And this will be a good chance for the domestic steel makers to supply automotive steels. The automakers in India on an average imports 75% of high-grade automotive steel for outer panels of cars and other vehicles. An import duty of 5% puts pricing pressure on the companies. If these Japanese companies come into an alliance with the local partners in India, this will help India to produce high grades of auto steel locally.
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