Why ArcelorMittal’s Proposed Indian Automotive Steel Joint Venture Is A Good Idea
ArcelorMittal’s top management recently held discussions with Government of India officials over a proposed $1 billion automotive steel joint venture between ArcelorMittal and state-owned steel company, Steel Authority of India Limited (SAIL). [1] Though ArcelorMittal’s operations are largely concentrated in Europe and the Americas, the company is looking to increase its footprint in India, hoping to cater to the demands of the fast-growing Indian automotive industry. Moreover, the Indian automotive industry will benefit from favorable government support in the years to come, with automobile manufacturing constituting a key thrust area for the Indian government’s ‘Make in India’ program, which is aimed at fostering indigenous manufacturing growth. The Government of India’s Automotive Mission Plan 2016-2026 aims to triple Indian passenger and commercial vehicle production by 2026.
India is currently the fastest growing passenger car market in the world. [2] Passenger car sales are expected to reach 5 million units by 2020, implying an annual growth rate of around 8%. [3] Given the rapid growth expected in the Indian automotive industry and the favorable policy support for the same, Indian demand for automotive steel is expected to rise at robust rates in the years to come. Thus, ArcelorMittal’s plan to set up an automotive steel joint venture with a state owned steel company should enable the company to take advantage of an exciting growth opportunity.
Have more questions about ArcelorMittal? See the links below.
- What Is ArcelorMittal’s Revenue And EBITDA Breakdown?
- What Is ArcelorMittal’s Fundamental Value Based On 2015 Results?
- By What Percentage Did ArcelorMittal’s Revenue & EBITDA Change In The Last 4 Years?
- How Has ArcelorMittal’s Revenue Composition Changed Over The Last 4 Years?
- By What Percentage Can ArcelorMittal’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will ArcelorMittal’s Revenue Composition Change by 2020?
- ArcelorMittal: A Look Back At The Year 2015
- With Steel Facing Competition From Aluminum In Automotive Applications, By What Percentage Will ArcelorMittal’s Automotive Steel Shipments Change By 2020?
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