Tesla-Tata partnership set to expand amid India entry plans

Tesla Motors, a company that has been in long contention to mark its entry into the Indian market, has increased its engagement with Indian suppliers, with an aim to diversify its supplier base that—up until now—was largely based out of China and Taiwan. Tesla aims to benefit from the vast expertise and base of Tata Group, once it officially enters into the Indian market. Learn more about Tesla’s India entry plans and how its ties with Tata Group will play a crucial role in its future roadmap.

Tesla-Tata partnership set to be expanded 

The Tata Group—that includes Tata AutoComp, TCS, Tata Technologies and Tata Electronics—has been one of the top suppliers of EV components for Tesla. Reports suggest that Indian suppliers supplied components worth upwards of USD 2 billion to US carmakers in FY24. Ahead of Tesla’s India entry, it has already started the framework of establishing a local supplier base in the country for future local manufacturing. Once in action, Tata Group will play a crucial role in supporting Tesla’s India roadmap and supply key EV components like circuit boards, castings, forgings, electronics and fabrication items, along with other Tesla suppliers.

Reports reveal that Tata AutoComp—Tata’s engineering arm for EV components—is one of the key suppliers of EV components for Indian and global EV makers. Other brands under the umbrella provide various services to Tesla and other EV makers—TCS offers circuit-boards, Tata Technologies offers end to end product life cycle management, to name a few. Tata Electronics is setting up a local chip manufacturing facility, which will create a large infrastructure to serve the excessive demand of semi-conductor chips.

Also Read: Tesla seeks homologation for Model 3 & Model Y in India — First EVs to enter?

Tesla’s vast association with Indian suppliers

Tesla is regarded as one of the most advanced EV manufacturers in the world, renowned for its advanced technologies. While the American EV-maker develops and manufactures its own motors, batteries and chargers, it relies heavily on its global supplier base for other components. Ever since the supply chains were disrupted during COVID-19, Tesla has diversified its supplier base, which also includes almost a dozen of Indian suppliers—Samvardhana, Motherson and Suprajit Engineering to name a few.

Tata Group has also been in a long association with Tesla as one of its global component suppliers but the next step, as we mentioned earlier, will play a crucial role in its India expansion. It’s no secret that Tesla will have to establish its India assembly/manufacturing operations sooner or later, to take complete benefits of Indian government policies.

Also Read: Tesla is finally coming to India! — Here’s everything you need to know

Tesla’s India entry — Where things stand now?

We have heard all sorts of news in the preceding weeks about Tesla hunting for showroom locations and talking with states in contention to establish a manufacturing facility. Tesla has leased a showroom location at BKC, which will be Tesla’s first showroom in India, followed by other markets like Delhi. Furthermore, Tesla has been engaging in talks with states like Rajasthan, Gujarat, Tamil Nadu, Maharashtra and Telangana to establish a manufacturing base in India, reports revealed. Moreover, Tesla is constantly in talks with the Indian government requesting reduced tariffs for its imported range of models with which it will begin its India innings.

Source