The Aluminium Association of India (AAI), the apex body representing aluminium producers in India, has submitted its pre-budget representation to the Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce, Government of India.

It emphasises aluminium’s crucial role in India’s continued growth, especially as the nation envisions becoming a ‘Viksit Bharat’ by 2047. High aluminium usage is an established marker of advanced economies, given the metal’s extensive use in both present and futuristic applications. This has led several nations like USA, Malaysia and Indonesia to designate aluminium as a ‘strategic sector’.

As per industry estimates, India’s per capita consumption of aluminium is still around 3kg per annum, compared to the global average of 12kg. However, the sector is facing major challenges in attracting fresh investments, despite domestic demand for aluminium set to reach 10 MTPA by 2030. So far, the Indian aluminium industry has invested over USD 20 billion, to expand production capacity to 4.2 MTPA to meet the growing demand. However, a further investment of about USD 40 billion over the next 6 years will be needed to meet the expected demand of 10 MTPA, while also creating more jobs within India.

AAI states that given that aluminium is a strategic metal with extensive usage in defence, aerospace and sunrise sectors of renewables, electric vehicles, power transmission and sustainable infrastructure, it is paramount for India to be self-sufficient in aluminium production. Towards encouraging fresh investments, aluminium producers have requested the Central Government to safeguard the industry from surging imports.

The industry body states that over the past couple of years, imports of primary aluminium have doubled while there has also been a significant surge in low-quality scrap and downstream products, especially from China.

Industry members have highlighted that the influx of imports in the domestic market is a deterrent to making new investments in the sector, even when India has all the necessary ingredients to emerge as a global aluminium hub. According to them, the primary reason for the surge in imports is the low import duties on primary/downstream products and a prevalent duty difference between primary goods and scrap in aluminium. This is unlike other key non-ferrous metals, where the duty for scrap and primary is at par.

AAI states it is therefore requesting the Central Government to help ensure the nation’s self-sufficiency and attract new investments by increasing the import duty on primary/downstream products to 10 percent from the existing 7.5 percent. Additionally, to control cheap imports, the duty on aluminium scrap also needs to be set at 7.5 percent, at par with other aluminium products. This measure would encourage the recycling of domestic scrap and limit the influx of low-quality foreign scrap, helping strengthen the circular economy.

To ensure global competitiveness, it is essential that policies nurture a sustainable environment, fostering growth for the domestic industry while positioning India as a leader in the global market. This will provide some relief to the industry, already burdened by high tax and regulatory charges.

At present, the industry incurs around 17 percent of its cost of production in taxes, levies, and regulatory compliance charges. To ease this burden, the AAI has proposed an urgent rationalising of duties on crucial raw materials.

The domestic aluminium industry’s existing investments in capacity have led to the creation of over 800,000 direct and indirect jobs and spurred the development of more than 4,000 small and medium enterprises (SMEs) in remote regions, particularly in the downstream sector. According to the AAI, the additional investment of USD 40 billion to meet domestic demand would align with the Prime Minister's vision for an ‘Atmanirbhar Bharat’, while also creating 2 million livelihood opportunities across the country. With government support in the form of duty rationalisation and enhanced import restrictions, the domestic producers are confident of contributing to India's journey toward self-reliance.

Representational image courses: Victor Kovshevny/Flickr

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Swedish steel manufacturer SSAB has announced a new collaboration with Polmotors, a tier 1 supplier focusing on low-emission products, for exploring the potential of fossil-free materials in demanding automotive applications.

The partnership will see Polmotors explore manufacturing components using SSAB’s decarbonised steel.

SSAB is working on two unique decarbonised steels and aims to largely eliminate carbon dioxide emissions from its own operations. It has already introduced SSAB Zero, which is based on recycled steel and made using fossil-free energy. The company claims that it has also successfully produced the world’s first fossil-free steel. It works with iron ore producer LKAB and energy company Vattenfall as part of the HYBRIT initiative to develop a value chain for fossil-free iron- and steel production, replacing the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. This process virtually eliminates carbon dioxide emissions in steel production.

On the other hand, Polmotors closely works with the likes of Volkswagen, Audi, BMW, Peugeot, Citroen, Jeep, Stellantis, Mercedes-Benz and Opel among others, to introduce high-performance components which are not only lighter but also greener.

Maciej Grabos, CEO, Polmotors, said, “Polmotors sees the future of fossil-free steel. And the potential competitive advantage of being an early adopter, positioning ourselves to meet the anticipated market demand from premium automotive OEMs. We design and manufacture crash management systems (CMSs) for these customers, such as bumpers and rally bars, so choice of materials is crucial. Polmotors looks forward to joint R&D – working with SSAB and the OEMs – for the implementation of new steel grades in our products.”

Robert Lewandowski, Key Account Manager, SSAB, said, “Polmotors recently celebrated its 35thanniversary. I’ve had the pleasure and privilege to meet them 20 years ago and observe how an initially small, Polish-owned enterprise turned into a global Tier1 supplier. Decarbonisation of the automotive industry requires cooperation across the supply chain where Tier 1 companies play an important role”.

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The Ministry of Heavy Industries (MHI) has announced a new initiative to promote green mobility in the country under the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’ (SPMECI).

The initiative aims to focus on encouraging the manufacturing of electric four-wheelers in the country. The scheme eventually looks to establish India as a premier global EV-manufacturing hub and attract investments from global electric vehicle companies, along with generating employment.

The Ministry of Heavy Industry has opened the application portal for a period of around 3 months starting from 24 June 2025 till 6pm on 21^st October 2025.

HD Kumaraswamy, Union Minister for Heavy Industries and Steel of India, said, “Guided by the visionary leadership of Prime Minister Narendra Modi, this initiative marks a defining moment in India’s journey towards clean, self-reliant and future-ready mobility. The launch of this portal under the SPMEPCI scheme opens new avenues for global electric vehicle manufacturers to invest in India’s rapidly evolving automotive landscape. This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy.”

As per the guidelines, all approved applicants will need to invest a minimum of INR 41.5 billion to establish long-term manufacturing footprints in India. Global OEMs who invest in the country will be able to import electric passenger vehicles as Completely Built Units (CBUs) with a minimum CIF value of USD 35,000 at reduced customs duty of 15 percent for a period of five years from the Application Approval Date.

The Ministry has announced calibrated customs duty concessions and clearly defined Domestic Value Addition (DVA) milestones to strike a balance between the introduction of advanced EV technologies and the use of indigenous capabilities. Through domestic value addition targets, the scheme aims to fast track global and domestic companies towards becoming active partners in the country’s green mobility revolution.

SPMECI had been notified by a notification given on 15 March 2024.

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Tata Motors, one of India’s leading automobile manufacturers, has inaugurated two—state-of-the-art Re.Wi.Re – Recycle with Respect – Registered Vehicle Scrapping Facilities (RVSFs) in Lucknow, Uttar Pradesh and Raipur, Chhattisgarh.

The Union Minister of Road Transport and Highways, Government of India, Nitin Gadkari, inaugurated these facilities virtually. The facilities are designed to safely and responsibly dismantle end-of-life vehicles including two-wheelers, three-wheelers, passenger vehicles and commercial vehicles, irrespective of the brands.

Nitin Gadkari, said, “I am pleased to launch two Registered Vehicle Scrapping Facilities in Lucknow and Raipur. These modern centres mark a progressive step under the National Vehicle Scrappage Policy, which empowers citizens to transition to cleaner, more fuel-efficient vehicles through structured incentives. These facilities will play a crucial role in the safe dismantling of unfit vehicles while enabling the recovery of valuable materials for scientific recycling. I commend Tata Motors for their steadfast commitment to sustainability and for establishing a nationwide RVSF infrastructure that aligns with global standards. Progressive initiatives like these are vital to building a robust ecosystem that makes vehicle scrappage accessible, efficient, and impactful across the country.”

The Raipur facility has a capacity to process 25,000 vehicles per annum, while Lucknow facility can scrap upto 15,000 vehicles annually.  

Girish Wagh, Executive Director, Tata Motors, said, “Sustainability is not merely a commitment at Tata Motors—it is a foundational pillar shaping the future of mobility. Guided by the principles of a circular economy, we are steadfast in our pursuit of responsible and eco-friendly practices. With the widest nationwide network of Re.Wi.Re facilities, Tata Motors is now equipped to responsibly dismantle over 175,000 end-of-life vehicles annually. We deeply value the unwavering support and collaboration of our partners, state governments, and local authorities in turning this vision into reality. I would especially like to thank Union Minister Nitin Gadkari for his continued leadership and encouragement in advancing sustainable mobility and vehicle recycling in India.”

With this, Tata Motors now has 10 vehicle scrapping centres across the country including -  Jaipur, Bhubaneswar, Surat, Chandigarh, Delhi-NCR, Pune, Guwahati, Raipur, Lucknow and Kolkata.

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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing automakers in India, has announced the wholesale data for May 2025. The month gone by saw a total of 2.05 million vehicles sold across the two-wheeler, three-wheeler and four-wheeler categories. This marked a flat growth versus 2.02 million vehicles sold last year, but an 11 percent growth over April 2025.

Looking at the segment-wise sales, the passenger vehicle sales were primarily driven by the robust demand for SUVs with 196,821 units sold, up 7.6 percent, as compared to 182,883 units sold last year. On the other hand, passenger car sales declined by 12.2 percent with 93,951 units sold, as compared to 106,952 units sold last year.

The three-wheeler segment was in the red across segments, with a total of 53,942 units sold, down 3.3 percent YoY.

In the two-wheeler space, the wholesales for motorcycles remained flat at 1.03 million units sold, while scooter sales grew by 7 percent at 579,507 units sold as compared to 540,866 units sold last year.

Commenting on the sales data, Rajesh Menon, Director General, SIAM, said, “All vehicle segments posted stable performance in May 2025. Passenger Vehicles segment posted sales of 3.45 lakh units, though 2nd highest ever of May, the segment de-grew marginally by 0.8 percent compared to May 2024, three-wheelers de-grew by 3.3 percent compared to May of previous year, with sales of 0.54 lakh units, while two-wheeler segment grew by 2.2 percent in May 2025, as compared to May 2024, with sales of 16.56 lakh units. Going forward, the RBI’s three repo rate cuts totalling 100 basis points in less than six months, along with a forecast of above-normal monsoons are some of the indicators which should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months.”

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