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Tata steel is currently in talks with Toyota Car Company to supply high-grade steel skin panels for its proposed small car which is slated for launch late next year may use Tata steel as its outer body cover, an official in the company said.

Tata Steel already has strong links with Toyota for supplying it skin panels to meet 90% requirement for the outer body of Toyota Innova multi-utility vehicle.

Skin panels form the lateral exterior of a car body. “These are extreme quality controlled products that is strong, formable, thin to reduce weight of the car and spot less to give a fine texture to the body after it is painted,” the official said. The officials declined to comment on exact time by when deliveries of steel would begin for Toyota’s car. “We are yet to formalize the deal,” he said.

However, the company has already begun exercise to ramp up its production of skin panels from 50,000 tonne now to 100000 tonne by ended of current fiscal year.

“We plan to increase skin panel production to 100000 tonne a year, because demand is pouring in. We have no need to look at the export market for this product,” he said.

Earlier, during the making of Innova, Tata Steel had worked jointly with Toyota to advise the carmaker on the exact type of steel it should use, a company spokesperson said in a separate interaction. The company is also supplying panels to other automobile companies like Maruti, Hyundai, Tata Motors, etc. Ironically, the recently launched small car by Tata Motors, Nano, does not use skin panels produced by Tata Steel.

Tata Steel has also got global certification from Nissan for skin panels to be used in its cars. The company may also explore the possibility of exporting this product. “This would be difficult initially as domestic demand itself would be strong enough to take up the entire supplies. However, it’s an option that remains open,” said the official.

[Source: EconomicTimes]

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