Consider a huge factory with robotic hands spinning, metal sparks shooting, and a brand-new SUV leaving the assembly line. This is not a prospect of what the future will be, but what is happening due to the influence of the Make in India campaign.  

This policy, which was introduced in 2014, was a call to the manufacturers, investors and innovators in every corner of the nation to make India one of the top players in the design and production industries. Lots of industries were on board with the mission, but the race was won by the automotive industry. Strengthening our economy and quality of life is what this industrial symphony is about.   
 

The Steel-Auto Connection: Why Steel Matters  

The auto industry is being supported by steel. Whether it is the frame and engine, gearboxes and other security features, steel is at the central point of car making. The steel demand of the automotive sector currently constitutes 12-15 per cent of the overall steel demand in India and it keeps increasing. With the growth of local vehicle manufacturing, which was encouraged by Make in India project, the consumption of steel is also increased. Steelmakers had to be as innovative as efficient and scaled. 

Driving Forces Behind India’s Auto Boom  

Several interconnected forces have driven this transformation. Here’s how Make in India scheme powered the rise of the automotive sector:  

1. FDI and Global Automakers Steer In 

The policy resulted in opening of the possibility of Foreign Direct Investment (FDI) thereby inviting world-renowned brands such as Kia, MG Motors, and Jeep to establish their manufacturing plants in India. These players opted to construct locally instead of importing thereby putting pressure on the locally manufactured automotive-grade steel. 

2. Strengthening of Local Value Chains 

With the local suppliers, particularly steel producers, there was an increase in production capacity and technological advancement after global players found their way into the country and established roots in India. They started to manufacture greater amounts of Advanced High-Strength Steels (AHSS) and galvanized steel to make vehicles safer, more efficient with fuel, and durable. The value chain was more Indian, more imaginative and more enduring. 

3. EV Revolution and Steel Innovation  

The segment of electric vehicles received a significant boost with government projects such as FAME India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). EVs need materials that are lighter but stronger to guarantee energy efficiency. Indian steel labs responded by creating green steel, custom alloys, and materials suitable for the EV era; keeping India competitive in a rapidly changing global market. 
 

Policy Moves That Accelerated Local Production  

The government didn’t just invite investment; it reshaped the landscape with key policy levers that made local production more attractive than ever:  

1. High Import Duties on CBU Vehicles  

To limit foreign car imports, Completely Built Units (CBUs) now carry a steep 125% import duty. This made imported cars far more expensive, giving a significant edge to locally manufactured vehicles, both for companies and consumers. 

2. Taxes on Imported Components 

Importation of key components such as gearboxes, airbags and axles attracts 10 percent tax. This pushed home manufacturers to come up with local variants to reinforce the component base in India and limit dependence on imports. 

Hyundai Motor India: A Case Study in Localization Success  

Among the many companies embracing the Make in India products, Hyundai Motor India Limited (HMIL) stands out for its aggressive localization strategy centered at its Sriperumbudur plant near Chennai.

92% Localization Achieved  

From EV battery packs to over 1,200 components, Hyundai now produces 92% of its parts locally. This localization effort has saved the company ₹5,700 crore (USD 672 million) since 2019. 

Construction of EV Battery kicks off  

The company started assembling EV battery at its Hyundai Sriperumbudur plant in collaboration with Mobis India. Its annual capacity is 75,000 SUVs, and the facility aims to provide parts of future models, such as Hyundai Creta Electric.  

The future Investment  

The Hyundai company has set aside 1,500 crores to enhance its manufacturing plant, with the inclusion of modern technologies and creation of 155 jobs in the process. This is also a classic way of how localization is fostering larger economic growth and employment. 
 

India’s Position in Global Auto Production  

India's rapid growth in the automotive sector is clearly making its mark on the global stage. In 2023, India topped Japan to be the third largest car manufacturer in the world. In India, 28.43 million of vehicles were produced by FY24, and the export was increasing. This meteoric rise is closely tied to the increased demand for high-performance steel and India’s steelmakers are stepping up. 
 

Steel Demand: Accelerating Alongside Auto Growth  

Data from the Ministry of Steel reveals a clear trend: automotive steel consumption in India, currently at 12–15%, is expected to rise to 18% by 2030. The growing market for electric cars and passenger vehicles is driving demand for value-added, coated, and lightweight steel, pushing the industry into a new era of material innovation.  
 

Hashtagsteel: Enabling Smarter Steel for Smarter Vehicles  

In this evolving landscape, access to the right steel is more critical than ever. Visit Hashtagsteel - a modern e-marketplace connecting auto manufacturers, OEMs, and Tier-1 vendors with verified suppliers of automotive-grade steel. With real-time pricing and digital tools, Hashtagsteel makes steel procurement smarter, faster, and more transparent. From high-strength steel to galvanized coils, it helps build the very backbone of India’s automotive revolution; one smart solution at a time.