 "Innovation, CAFE norms can boost aluminium use in automotives: Analysts")
Innovation by aluminium producers to contain cost of production coupled with introduction of corporate average fuel economy (CAFE) norms in the country can give a huge fillip to adoption of aluminium in vehicles by automakers, said analysts.
In India, aluminium usage in automotives is still at a nascent stage. Compared to developed markets where small cars use an average of 140 kg of aluminium, the consumption in India stands at only 40 kg. Analysts feel high cost of aluminium as against steel has restrained the use of the white metal.
“High cost of aluminium bodies is one of the major obstacles in its use compared to steel and cast irons. Since cost may be higher, the usability is currently limited to low-volume vehicles such as sports cars and heavy trucks. However, the blend of steel and aluminium (alloy) is prominently used in small cars. Also the impact of production of aluminium has impact on the environment. India is a very cost conscious market and small car market therefore currently the use of aluminium is very limited, it might increase in future provided cost comes down through innovation and introduction of CAFE norms”, said Abdul Majeed, partner at PricewaterhouseCoopers (PwC).
“Downstream producers can have significant market presence not only in India but globally by focusing on next generation opportunities such as railway wagons, two-wheelers, aerospace, cans, buses, trucks, cars and premium windows. The key to their success will be quality of aluminium, made available at low cost. There should also be a focus on technological research & developments to come out with with ‘cleaner’ aluminium”, adds Majeed.
The key challenges for the aluminium usage in India are increased imports prices and difficulty in accessing critical resources like coal and bauxite (which are used in producing aluminium) due to delayed clearances.
But, the country has some inherent advantages- aluminium demand is growing at the rate of 10 per cent and is only expected to gather steam with the Government of India's push for 'Make in India', Smart Cities and rural electrification. India is also turning to be an auto hub for global OEMs (original equipment manufacturers) and the country's auto industry's valuation is pegged at $115 by 2020.
“The future is looking bright for India, as China’s economy is transitioning from high growth to a mature economy with a moderate growth rate. With India’s automotive industry potential, and government initiatives like Make in India, India is positioning itself to become the next high growth economy and a major player in the global automotive industry. Considering the fact that light weighting enables to reduce consumption of fuel and also CO2 emissions, Government’s initiative is called for to impress upon automakers to adopt light weighting”, said K S S Murthy, general secretary, Aluminium Association of India (AAI).
Weight-reduction efforts in automotive design and construction have increased significantly in recent years. Every 10 per cent reduction in the vehicle mass increases fuel economy by about six to eight per cent. Aluminium is lighter material than steel and use of aluminium alloys for body-in-white (BIW) and other subsystem components would result in reduction of fuel consumption as well as CO2 emissions.
In India, aluminium usage in automotives is still at a nascent stage. Compared to developed markets where small cars use an average of 140 kg of aluminium, the consumption in India stands at only 40 kg. Analysts feel high cost of aluminium as against steel has restrained the use of the white metal.
“High cost of aluminium bodies is one of the major obstacles in its use compared to steel and cast irons. Since cost may be higher, the usability is currently limited to low-volume vehicles such as sports cars and heavy trucks. However, the blend of steel and aluminium (alloy) is prominently used in small cars. Also the impact of production of aluminium has impact on the environment. India is a very cost conscious market and small car market therefore currently the use of aluminium is very limited, it might increase in future provided cost comes down through innovation and introduction of CAFE norms”, said Abdul Majeed, partner at PricewaterhouseCoopers (PwC).
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The remedy, he suggests is producing aluminium at low cost to boost its penetration in automobiles.
“Downstream producers can have significant market presence not only in India but globally by focusing on next generation opportunities such as railway wagons, two-wheelers, aerospace, cans, buses, trucks, cars and premium windows. The key to their success will be quality of aluminium, made available at low cost. There should also be a focus on technological research & developments to come out with with ‘cleaner’ aluminium”, adds Majeed.
The key challenges for the aluminium usage in India are increased imports prices and difficulty in accessing critical resources like coal and bauxite (which are used in producing aluminium) due to delayed clearances.
But, the country has some inherent advantages- aluminium demand is growing at the rate of 10 per cent and is only expected to gather steam with the Government of India's push for 'Make in India', Smart Cities and rural electrification. India is also turning to be an auto hub for global OEMs (original equipment manufacturers) and the country's auto industry's valuation is pegged at $115 by 2020.
“The future is looking bright for India, as China’s economy is transitioning from high growth to a mature economy with a moderate growth rate. With India’s automotive industry potential, and government initiatives like Make in India, India is positioning itself to become the next high growth economy and a major player in the global automotive industry. Considering the fact that light weighting enables to reduce consumption of fuel and also CO2 emissions, Government’s initiative is called for to impress upon automakers to adopt light weighting”, said K S S Murthy, general secretary, Aluminium Association of India (AAI).
Weight-reduction efforts in automotive design and construction have increased significantly in recent years. Every 10 per cent reduction in the vehicle mass increases fuel economy by about six to eight per cent. Aluminium is lighter material than steel and use of aluminium alloys for body-in-white (BIW) and other subsystem components would result in reduction of fuel consumption as well as CO2 emissions.