SMM projects aluminium use in vehicles to see small peak in 2019

According to a report produced by Shanghai Metals Market, the aluminium usages in passenger vehicles are not extensive yet because of the expensive aluminium parts. A survey of nearly 20 carmakers including BMW, Audi and SAIC Motor has revealed that the aluminium applications in cars are still very limited.

The company uses aluminium structural parts to reduce vehicle weight. Currently, aluminium parts are limited by high costs. Due to this, the brands like Audi and Land Rover are mainly using these parts in their vehicles.

The aluminium use in passenger vehicles will see a small peak by 2019 as China will require all light vehicles to adhere to tougher new "China VI" emission standards by 2020, SMM says.

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However, Kobe Steel recently announced its plan to expand its capacity to supply aluminium materials to automakers in Asia and America. The company is investing about 70 billion yen to strengthen its supply network for automotive aluminium in Asia.

The company forecasts Chinese and Japanese demand for aluminium automotive panel and sheets to rise six to seven fold by 2025 from the current level.

The North America and Europe are expected to use maximum aluminium in their automobiles after the enactment of Corporate Average Fuel Economy (CAFE) standards.