Tata Steel is investing 2.3 million euro (Rs 16.5 crore) to develop "next generation" variant of steel for automotive use at Ijmuiden plant in the Netherlands.
"The Euro 2.3 million investment at company's Ijmuiden site in the Netherlands will allow Tata Steel to develop next-generation steels which are lighter, stronger and better able to withstand crashes," it said in a statement.
Tata Steel said the decision to spend the money follows close collaboration between the company and three major European car manufacturers to understand their requirements for future car models.
"This investment comes out of discussions we have been having with some of our automotive customers about their visions for the vehicles of the future," Tata Steel Europe's Chief Commercial Officer Henrik Adam said.
"This upgraded facility will enable us to work more closely with them, not only to develop the new, advanced steels they increasingly require, but also to help them improve their performance when they process these steels using their own equipment," he added.
Tata Steel said the facility is the most technologically advanced in the world, combining characteristics of commercial industrial line alongside special research features to control and measure atmosphere, temperature, speed, force, stress and friction.