Novelis pins hope on emission regulations for driving aluminium penetration in auto industry

Some thirty years ago, Ford pioneered the use of aluminium replacing steel in its star seller F-150 pickup truck. Though the automaker still continues to build its F-150s from aluminium, not many auto makers have followed suit. Instead, the trend of using a combination of ultra-high-strength steel, aluminium sheet, magnesium and other materials has picked up among body-in-white makers all over the world.

However, the trend doesn't seem to be deterring Novelis much from investing in new lines. One of the two major automotive aluminium suppliers to the auto industry, Novelis is upbeat about prospects of aluminium being used increasingly in the automotive industry faced by emission reduction challenges.

Marco Pal- mieri, president of Novelis North America, in a recent interview said, "I think there will be more mixed-materials vehicles, and we may see some all-aluminium vehicles, such as luxury cars with volumes of between 100,000 and 150,000 units per year, changing to all aluminium. That is my own view."

In 2012, 5 per cent, or 150,000 tons, of what Novelis sold globally was for the automotive industry. Last year, fiscal 2016 ending March 31, the company sold 450,000 tons. The company expects, the share of automotive to go up to 25 per cent in the next three to five years.

On being asked whether rising fuel pices will weigh on the company's sales, especially when penetration of aluminium is high despite falling prices, Marco Pal- mieri said, "I strongly believe the big driver for aluminium is emissions and that will be there regardless of the price of gasoline. That will be the driver for years to come."

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