After more than 20 years of development for China's auto industry, it has stepped into a period with a low but stable growth rate. The competition has forced automakers to put more emphasis on cost control rather than pursuing higher quality, which has brought new challenges as well as opportunities to steel sheet makers.

"In the automobile-use steel industry, we should not only provide better quality, service and technology for our customers, but also individualized products to meet their special needs," said Tang Fuping, deputy general manager of Ansteel.

"I don't care too much where the steel from for my car comes from, domestic or overseas, but I do care whether it is light and strong enough," said Zhao Peng, who is planning to buy a car after he qualified last month through a lottery.

"In order to save costs, we are considering using domestic steel sheets to replace the imported products for future production," said a company insider of a large automaker in China.

"We hope that Baosteel can enhance its innovation and research to meet our needs for better quality and lower price," he said.

The strategic change by domestic auto producers is offering opportunities for related steel makers.

Even some foreign auto manufacturers are interested in Baosteel's products, industry experts said.

"It raises the costs and inventory risks to use imported steel sheets for production. That's why we are seeking local suppliers," said a European auto industry insider who declined to be named. "If Baosteel can accelerate high-end product research and development to solve our cost problem, we would love to become their loyal client."

dujuan@chinadaily.com.cn