The Tata Group has emerged as a key global supplier for Tesla, the world’s leading electric vehicle (EV) manufacturer, as several Tata companies join Tesla’s supply chain. This collaboration involves Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics, which are providing crucial components and services.
According to a report by The Economic Times (ET), these Tata firms have signed global agreements with Tesla and are already supplying various parts. Their involvement is expected to increase, particularly if Tesla establishes a manufacturing facility in India.
Sources revealed that Tesla’s procurement officials are in discussions with Indian suppliers to manufacture specific components, including castings, forgings, electronics, and fabrication parts. “Tesla is, in a way, readying the supplier base in India,” a source stated, highlighting the anticipated benefits for Indian suppliers once Tesla begins local production.
In fiscal year 2024, Indian companies contributed nearly $2 billion worth of components to Tesla, indicating a significant role for Indian manufacturers in the EV supply chain. As Tesla looks to diversify its sourcing options, this figure is expected to grow.
Tesla is evaluating potential manufacturing sites in India while considering government incentives, tax benefits, and duty waivers. Although no official plans have been confirmed, Tesla is reportedly in talks with several states, including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana.
Tata Group companies are supplying various specialized products to Tesla, including:
- Tata AutoComp: Engineering products for EVs.
- Tata Technologies: End-to-end product lifecycle management.
- TCS: Circuit-board technologies.
- Tata Electronics: Expected to supply semiconductor chips following the operational launch of its local manufacturing plant.
In addition to the Tata Group, Tesla is sourcing from over a dozen other Indian companies, including Samvardhana Motherson and Bharat Forge, as part of its strategy to reduce dependence on suppliers from China and Taiwan.
This growing partnership between the Tata Group and Tesla marks a pivotal moment in the evolution of India’s electric vehicle manufacturing landscape.
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