Tata Group Companies Quietly Join Hands With Tesla To Supply Vital Components To The American EV Maker

News reports suggest that some Tata Group companies have entered into partnerships with EV maker Tesla and are contributing to its global supply chain network.

According to The Times of India, companies like Tata AutoComp, Tata Consultancy Services, Tata Technologies, and Tata Electronics have contributed to the $2 billion worth of Indian supplies sent to Tesla in FY24.

The American EV maker, reportedly, is also in talks with suppliers to establish facilities close to their manufacturing centers. This move has the potential to benefit the supply ecosystem.

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WHAT SOURCES SAY

An anonymous industry source told Economic Times, “Tesla is, in a way, readying the supplier base in India.”

“We are very sure that once Tesla starts manufacturing here, Indian suppliers will benefit from sourcing opportunities,” they added.

Reports also suggest that there have been meetings between senior procurement executives from Tesla and numerous current suppliers.

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TATA AND TESLA

During the COVID-19 pandemic, multiple supply chain challenges were witnessed, especially from China.

As a measure, Tesla is aiming to reduce its reliance on China and Taiwan and look at other alternative locations to source vital components from.

For now, India is more of a development and supply hub for Tesla.

As Tata becomes a global supplier to Tesla, it is reported that:

• AutoComp offers specialized EV engineering products

• Tata Consultancy Services supplies circuit-board technologies

• Tata Technologies provides product lifecycle management services 

• Tata Eletronics is likely to supply essential vehicle control components, printed circuit board assemblies, motor controller units, and door control mechanism

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WHAT’S NEXT FOR TESLA AND INDIA

Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, and Bharat Forge are some of the Indian manufacturers that Tesla has already forged partnerships with to source important components.

During FY24, the total financial value of the vital components sourced from India was estimated between $1.7 to 1.9 billion. FY25 has witnessed growth in procurement from the country’s suppliers.

Additionally, sources suggest that the Elon Musk-led Tesla is also planning to set up manufacturing facilities in India. It is already in conversations with Indian states like Rajasthan, Tamil Nadu, Gujarat, Telangana, and Maharashtra for the same.

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