Varuun Kappoor, Business Specialist at TechSci Research explained that India electrical steel market is predicted to proliferate during the forecast period owing to various driving factors such as growing demand for electrical steel from various industries and high consumption of electrical steel in motors and transformers across the country. «Electrical steel is also called silicon electrical steel, silicon steel, relay steel, and transformer steel. Electrical steel is a specialty steel that is used in the cores of electromagnetic equipment including motors, generators, and transformers that helps in minimizing power loss. It is an iron alloy with silicon as the primary adding component in place of carbon. Specific magnetic qualities are produced by the precise formulation, including a tiny hysteresis area that results in low power loss per cycle, a low core loss, and high permeability. “The rising demand for electric motors from residential, commercial, and industrial sectors is the major driver that is propelling the market of electrical steel across the country. Electrical steel is widely used to create power generators with enhanced electromagnetic properties and minimal carbon dioxide emissions, as well as motors with increased magnetic flux and torque».
Various market players have invested in the automotive industry, directly increasing the demand for electrical steel in the Country. Some numbers: in January 2023, MG Motor India invested 100 million dollars to expand the manufacturing capacity in the whole Country, in December 2022, Mahindra & Mahindra invested 1.2 billion dollars in a manufacturing plant of electric vehicles in June and in November 2022, Maruti Suzuki India had spent about 865.12 million dollars for several projects, including the building of a new plant in Haryana and the release of new models. Finally, in April 2022, Tata Motors invested 3.08 billion dollars in the sector of passenger vehicles for next five years.