Steel companies turn to small OEMs as car sales continue to drop

With India’s car sales having hit the worst in eight years in April, domestic flat steel producers are now approaching smaller Original Equipment Manufacturers (OEMs) to sell their products albeit at same price.

“In the last three to four months, there has been a shift of about 20-30 percent of companies’ volumes to smaller OEMs as the usual large OEM customers are not lifting material,” a director at Bombay Iron Merchants Association (BIMA) told Business Standard.

Sajjan Jindal-led JSW Steel and Tata Steel are among the top flat steel producers in the country. This flat steel is used in the making of