In this paper, the application of tube Extrusion for the development of stepped tubular components is discussed. Thickness increase with respect to cold reduction of diameter is predicted with reasonable accuracy. Thickness increase, length increase and strain hardening coefficient for a given cold reduction of diameter of tube are obtained using LS-DYNA Software. True stress-plastic strain curves from the tensile test are used in the forming simulation using LS-DYNA. A special purpose machine is developed for the production of steering shaft components. Considerable reduction in weight is achieved by using stepped tubular components.