In a method of producing hollow rack bars from steel tubes for use in steering equipment for automobiles and so on, a part of the length of the steel tube to be processed and its adjacent parts is held in split dies that encircle a whole circumference of the tube except for the dies having a hole coinciding with the part of the tube to be processed. Then, a punch is inserted into the hole in a closed state of the dies for flattening a part of the tube, and then mandrels are pushed into the tube for ironing from the inside to form a rack pattern, when a rack forming die is inserted into the hole and held in contact with the flattened part of the tube.