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Forging of steel powder preform has aroused considerable Interest In recent years in automobile industries for manufacture of bearing races, connecting rods, pinion gears, etc. A component made this way can be heat treated to the strength level of wrought steel. It has much less fibering than a normal wrought material which results in better transverse properties leading to increased service life. The present paper reports the results of systemetic investigation on the Influence of chromium & molybdenum addition on the densification, forgeability and strength of low carbon steel powder preforms under varying compacting pressures. The work has also been carried out on a steel powder preform of composition En 351/353 produced from mixture of elemental powders. These steels find applicatiosssn in the manufacture of differential gears, gudgeon pin, pinion, etc for automotive industries.