TiAlN and AlCrN coatings were deposited on mild steel (EN 353 steel) by cathodic arc evaporation technique. Coefficients of friction, critical load, adhesive and cohesive properties of these coatings were studied using scratch tester. Failure mode for coatings with thickness of 2 and 4 µm were studied using scratch channels and acoustic activities as basis. Studies presented relationship between progressive and in situ emission signals. AlCrN coating exhibited higher critical load as determined by the acoustic emission signal. Additionally wear mechanisms were analyzed. Analysis of the experimental results showed that load carrying capacity of AlCrN coating is better than TiAlN coating. Scratch wear test of AlCrN coated substrates showed reduction in cracking and spalling of coated layers.