India has launched its first production facility for premium coated automotive steel

The joint venture between ArcelorMittal and Nippon Steel — AM/NS India — has commenced domestic production of Zagnelis Protect. This is a patented brand of steel with a zinc-aluminium-magnesium coating for the automotive industry. India has become the first market outside Europe where this product has been localised, which will reduce the country’s reliance on imports of high-tech steel. This is reported by Autocar.

Until now, around 8–10 per cent of critically important grades of automotive steel in India were imported due to the complexity of the coating technology. Given that over 30 million cars are produced in the country annually (and sales in the passenger car segment reached 4.7 million units in the 2025–2026 financial year), the localisation of such materials is of strategic importance.

Zagnelis Protect offers significant technological advantages over conventional galvanising:

1. Enhanced corrosion resistance. Particularly on cut edges and formed sections of components.
2. ‘Self-healing’ effect. The coating’s ability to automatically repair minor damage.
3. High manufacturability. Excellent deep-drawing performance and reliable weldability.
4. Logistical optimisation. Reduced lead times and a guarantee of consistent quality for local plants.

Initially, the steel will be supplied for the production of micro-electric motor housings (window regulators, wing mirrors, windscreen wipers), of which there are between 20 and 30 units in every car. In future, the material will be used for chassis and interior body panels.

Ranjan Dhar, Marketing Director at AM/NS India, emphasised that the product launch is part of a strategy to replace imports with advanced steel solutions. This is ArcelorMittal’s third patent to be commercialised by the company in India, following Magnelis (renewable energy) and Optigal (construction).

Production localisation is being implemented as part of a large-scale expansion programme at the Hazira plant (Gujarat). The project aims to develop the infrastructure required to produce next-generation steel.

AM/NS India’s current steelmaking capacity stands at 9 million tonnes per annum. The company is also currently building a new integrated steel plant with a capacity of 8.2 million tonnes in the state of Andhra Pradesh.

As reported by GMK Center, in the 2025/2026 financial year (ending 31 March), India increased its rolled steel exports by 36 per cent year-on-year to 6.6 million tonnes. The growth in exports was driven by strong demand from Europe in the second half of 2025, as buyers stockpiled ahead of changes to the bloc’s trade policy in 2026.