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Frost & Sullivan Estimates Gray Iron and Spheroidal Graphite Iron Demand in the Indian Auto Industry to Reach 480,277 and 312,090 MT Respectively by 2013 in Automobile Industry

June 24, 2009

MUMBAI, India, June 24 /PRNewswire/ — Growing concern over pollution and
higher operating costs has forced the closure of foundries in developing
countries. It is estimated that nearly 4,000 foundries have closed in Europe
and the United States, and demand has shifted to countries such as India,
China, and Brazil. New vehicle production is cyclical and hence demand for
iron from the automotive industry varies. With the heavy commercial vehicle
and tractor segment shifting focus toward higher horsepower engine, the
components, such as cylinder block and cylinder head, manufactured from iron
will increase. The passenger car and utility vehicles segment is expected by
grow at a CAGR of 10.0 percent, which bodes well for the automotive ferrous
castings market.

New analysis from Frost & Sullivan (http://www.automotive.frost.com),
Strategic Assessment of the Automotive Ferrous Castings Market in India,
finds that gray iron (GI) casting accounted for 59.6 percent of the total
production in India and the demand for 2007 was 336,049 MT. Spheroidal
graphite (SG) iron castings accounted for 40.4 percent of the total
production and the demand for 2007 was 227,959 MT for automotive components
in the country.

The Indian forging industry is estimated at approximately $1.98 billion
and it is expected to grow at a CAGR 8.3 percent. Foundry clusters in India
are located in Rajkot, Agra, Chennai, and Kolhapur adding up to over 5,000
recognized foundries both big and small. The industry employs about 500,000
workforce directly and 150,000 indirectly.

If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, then send an e-mail to

Ravinder Kaur / Nimisha Iyer, Corporate Communications, at
ravinder.kaur@frost.com / niyer@frost.com, with your full name, company name,
title, telephone number, fax number, company website and official e-mail
address. Upon receipt of the above information, a brochure will be sent to
you by e-mail.

Properties of GI, such as good machinability, high damping, and
dimensional stability, increase the scope for application in vehicles across
segments. Majority of the demand comes from medium to heavy commercial
vehicles for components such as cylinder block, cylinder head, and wheel hub
that are manufactured from cast iron.

“As the diesel engine cylinder blocks operate on very high temperature
when compared to cylinder block of petrol engines, SG iron used in
manufacturing the cylinder block of the Diesel Engine is twice as much
required in comparison with the manufacturing of the cylinder block of Petrol
Engine. The increasing demand for Diesel Engines specially in Indian
Passenger car segment would consequently create additional requirement for SG
Iron in Indian Automotive Industry”, notes Frost & Sullivan Research Analyst

Amit Punjani, Automotive & Transportation.

SG cast iron is used in various applications in the Indian automotive
industry, such as axle housing, brake cylinders due to its high-tensile
strength and high ductility. With the introduction of components such as
double axle in commercial vehicles, rear disc in the passenger car segment,
the demand for SG iron is likely to increase.

Strategic Assessment of the Automotive Ferrous Castings Market in India
is part of the Automotive & Transportation Growth Partnership Service
program, which also includes research in the following markets: Indian
automotive and auto components market covering passenger vehicles, commercial
vehicles and two wheeler markets. Components include fuel injection systems,
forged components, tires, batteries, sensors, telematics and vehicle tracking
systems market. Other research includes analysis of new technologies, export
markets and research on the Middle East automotive and components market. All
research services included in subscriptions provide detailed market
opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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    Strategic Assessment of the Automotive Ferrous Castings Market in India
    P281

    Contact:

    Ravinder Kaur
    Corporate Communications - South Asia
    P: +91-44-42044760
    F: +91-44-24314264
    E: ravinder.kaur@frost.com

    Nimisha Iyer
    Corporate Communications - South Asia & Middle East
    P: +91(22)40013400
    F: +91(22)2832-4713
    E: niyer@frost.com

    Tanu Chopra
    Corporate Communications - Middle East
    P: +91-22-4001-3437
    F: +91-22-2832-4713
    E: tanuc@frost.com

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SOURCE Frost & Sullivan (India) Pvt. Ltd.


Source: newswire