Car Articles

Read articles on cars and car industry. Get fully updated on all information related to cars. Read exciting happening in the Indian and Global Car industry, tips to help you and more...

Old Articles

Plastics as Solution of Price Crunch

The hike in the price of raw materials has put Indian car companies under pressure to increase prices. The inputs cost have raised by 30-40 percent. In this scenario, the car manufacturers are applying new strategies to cut down the cost as they can’t burden the consumers.

Despite intense pressure, companies have only marginally raised the cost of cars. But they will still have to bear a large amount of the input costs themselves. But how are car companies dealing with the crisis when prices of metals like steel and aluminum have gone up significantly. Simple they are replacing metals with plastics! They are replacing all metals in all those parts where plastics can been used.

Some of the car companies that are developing such cars are Tata Motors, Maruti Suzuki, Volkswagen, Ford and General Motors. Indian car companies have realised that the plastics are more cost effective than metals. With the use of plastic not only tooling costs will come down by half but also the total weight of the car will be reduced by 35 percent. As weight reduces, fuel efficiency increases. Car manufacturers have seen that engineered plastics have several advantages when used in the right places.

The German based BASF, the world’s leading chemical company, which is also a leading supplier of engineered plastics for cars is the source of such plastic. Major car companies like General Motors, Ford and Volkswagen has already placed orders for plastics components for their Indian ventures.

Currently, India uses a lot of metals in its automobile. It is far behind other countries which have already gone to innovate plastic parts to replace metals. Hence, the scope for market in India is large and promises to be a huge business opportunity. The use of plastics also becomes important as companies are competing to manufacture ultra-low cost vehicles. BASF expects to double its trade in India in the next three years. The company is also associated with India as it supplies engineered plastics for Tata Nano.

In order to provide services to its Indian clients BASF is opening shop in India. The company is setting up new engineering plastics compounding plant in Thane, coating facilities in Mangalore and catalyst plant in Chennai.

As car companies decide to reduce their dependence on metals, they can now able to cope up with the pressure of increased raw material cost.

» Read more Articles On Tata Motors

» Read more Articles On Car manufacturers

» Read more Articles On Fuel Efficiency