Automotive use of aluminum sheet will grow fivefold by 2020 - Novelis

Novelis Inc, the largest aluminum company headquartered in Atlanta, foresees rapid growth in demand for aluminum sheet from auto makers. New CO2 emission regulations in Europe could increase the use of aluminum sheet in automobile production by almost five times to 1.8 million tonnes by 2020. That being said, sales of aluminum sheet to automakers including Audi and Ford are likely to grow exponentially.

The company's vice chairman also said during a press conference in Mumbai that the company's automotive aluminum sheet shipments currently account for 9 percent of the company's total sales. The company estimates that the percentage of aluminum sheet shipments will grow to 25 percent by 2020. At the same time, the share of aluminum in the production of beverage cans will decrease from 60 percent to 50 percent.

US regulatory policy planning to cut carbon emissions may likely suggest that automakers use more aluminum in their vehicle designs. The company is already a supplier of aluminum sheets for Ford and its Ford-150 pickup truck, one of the most popular models in North America.

European regulations also require the use of lighter car bodies and parts to reduce the average carbon dioxide emissions of vehicles. This could lead to a switch for car manufacturers from steel to lighter aluminum products, the company said in a statement.