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08/23/18

“European, Korean car makers give 10 years anti-corrosion warranty, while 60% Indian cars surface rust, no warranty”, Stephen Wilkinson, IZA

One of the major sectors that is set to change is the automobile sector. Globally there has been a discrepancy in using galvanized car bodies. Indian car manufacturers use about 3% galvanized steel for the cars manufactured and sold in the domestic market. However, the same Indian car manufacturers use over 70% galvanized steel for the same models they export to markets in Europe, Asia and Africa, produced from the same stamping and assembly facilities. The car companies are not presently using galvanized steel for the domestic market because like other countries, Indian consumers are not demanding it. Stephen Wilkinson, Executive Director of International Zinc Association says, “Car makers in Europe, North America, Korea and Japan have been using galvanised steel for body panels for decades. These car companies provide anti-corrosion and perforation warranties for a minimum of 10 years. But there is no such protection for most cars made for the Indian consumers. Here the customers are advised to pay for extra coatings to protect the body of the car after purchase. More than 60% of the cars in India have surface rust which reduces steel strength and the life of the car.” In China, more vehicles are sold each year than the U.S. and Japan combined, and they rarely use galvanized steels, according to the International Zinc Association. The annual passenger vehicle sales will rise to 24 million in 2020 in China, from 19 million last year, as per McKinsey & Co. forecasts and only about one thirds of locally-manufactured autos use galvanized panels to prevent corrosion and rusting. China’s drivers will increasingly demand rust-proof cars in future according to report. Only about a third of locally-manufactured autos use galvanized panels to prevent corrosion and rusting. That’s good news for the price of zinc, the anti-corrosion fighter that’s already this year’s top performer among base metals. Domestic automakers in China, where more vehicles are sold each year than the U.S. and Japan combined, rarely use galvanized steels. Switching to the material would require about 350,000 metric tons a year of additional zinc, the association estimated last year. A similar move in India would need an extra 150,000 tons annually.