Electric vehicles (EVs) are no longer a niche — volumes are ramping up rapidly both globally. When it comes to in India, and that shift is reshaping material choices, supplier relationships and product specs across the auto supply chain. Global EV sales have increased significantly in recent years, and demand patterns indicate that double-digit growth is still in store. India is on the same path: regulatory backing, declining battery prices. The introduction of new models are driving a rapid increase in EV unit sales and market share across two-wheelers, three-wheelers, and passenger cars.
What EV growth changes in materials demand
EVs change priorities for vehicle design: the heavy battery pack makes range sensitive to weight and structural efficiency, while safety, corrosion protection and manufacturability remain non-negotiable. That creates a stronger demand for advanced steels — especially advanced high-strength steels (AHSS) and hot-rolled/heat-treated grades — because they deliver required strength at thinner gauges and remain cost-effective compared with aluminum or composites for many structural parts. Major steelmakers argue steel will continue to compete strongly on the basis of cost, safety and manufacturability.
For pre-painted / colour coated sheets, EV growth brings mixed but ultimately favourable demand signals. EV body assemblies, battery enclosures and visible exterior parts still need durable finishes. Corrosion resistance and consistent paint/texture — all areas where colour-coated steel can add value by reducing downstream painting steps. This ensuring part-to-part colour fidelity in high-volume production.
New technical requirements for coated sheets
Battery environments and sensor-rich EV platforms demand coatings with additional functionality. This improves corrosion resistance against electrolyte exposure, dielectric properties for EMI shielding and thermal or intumescent behaviour for battery thermal events. Coating suppliers are already developing formulations targeted at battery enclosures and underbody components where chemical exposure and heat management are critical.
At the same time, lightweighting pressures push OEMs to adopt thinner coated substrates — meaning suppliers must qualify fabrication performance (formability, springback), adhesion after deep drawing, and consistent coating thickness at lower gauges. Procurement teams should ask coated-sheet suppliers for validated performance data on deep-drawn parts and battery-grade coatings.
Supply-chain and sourcing implications
EV scale-up accelerates demand volatility for certain steel grades and battery materials, and it tightens the need for localised, reliable supply. For buyers this means rethinking lead times, long-term purchase agreements for specialty coated coils, and closer collaboration on R&D and joint qualification programs with sheet suppliers.
Business risks and opportunities
Risks: material substitution (aluminium/composites) in some body parts may reduce volumes for generic coated steel; rapid spec changes increase scrap/obsolescence risk if contracts aren’t flexible.
Opportunities: demand for AHSS and engineered coated products (battery-safe coatings, pre-finished body panels) opens premium margins for suppliers who can certify performance, localise production and collaborate on sustainability claims.
Takeaways for procurement and OEMs
- Qualify early: Require coated-sheet suppliers to provide forming, paint-adhesion and corrosion test certificates specifically for battery-adjacent applications.
- Plan for AHSS: Lock in agreements for advanced grades and thinner gauges; these will be strategic as EV programs scale.
- Localise supply chains: Support from local battery and EV investments means suppliers who localise coated-sheet production will be more attractive.
- Value sustainability: Be ready to pay a premium for low-carbon or recycled-content coated steel — customers increasingly demand Scope-3 improvements.
In short, EV growth doesn’t make coated steel obsolete — it changes what buyers need from coated-sheet suppliers. The winners will be suppliers that combine validated technical performance (battery-safe coatings, proven formability at thin gauges), resilient local supply and credible sustainability credentials.
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