In a bid to position themselves to take advantage of the ever-tightening emission regulations and the rise of electric vehicles, several of India’s top automotive component manufacturing firms are investing in in-house aluminium forging.
Several industry leaders and experts went on record in a report published by domestic media late last week regarding their increasing utilization and investment in aluminium for use in a wide array of parts manufactured for and sold to India’s automotive manufacturers.
“We are entering the aluminium forging business to start making triple clamps and active clamps in-house for our inverted front forks,” explained the managing director of Endurance Technologies Anurag Jain. “The potential is to reach ₹1.25 crore within three years after start of supplies.”
Jain continued by saying that such a move will help his company’s profit margins as well as opening up possibilities for using aluminium forging in other two-wheel and four-wheel applications.
“This is a very new trend, as in everyone wants to lighten their vehicles, and optimally lighten them so that the emission norms are under control, because the regulations has become very stringent,” explained ICICI Securities analyst Shashank Kanodia.
In addition, automotive component firm Bharat Forging has begun to make the move to lightweighting technology in order to help clients meet new environmental regulations.
“Stricter emission norms are likely to hasten the shift towards light-weighting technology in which BHFC has started making inroads,” said the company in its latest annual report.
“We are working on structural components across autos & industrial segments with focus on aluminium. The Nellore facility for light weighting will commission in second half of 2019 and has orders from domestic & export automotive customers.”
Bharat continued the report by saying it is engaging in a ₹200 crore capex project to build a lightweighting technology center.
Aluminium forging is the next logical step for the automotive parts industry in India according to industry experts.
“You had seen transition happening from steel forging to aluminium die-casting and now it’s changing from aluminium die-casting to aluminium forging,” explained Motilal Oswal’s Head of Research Jinesh Gandhi.
“Aluminium forging is of course very new to India and it hasn’t seen many material players so far, but the transition is happening now even at a premium vehicle levels.”