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As Tesla plans its expansion into India, these Tata companies are positioning themselves to play a larger role in the automaker’s supply chain
Tata Group Partners With Elon Musk’s Tesla In India; A New Era For Electric Vehicles Supply
Tesla In India: Several Tata Group companies, including Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics, have emerged as key suppliers to Tesla, which accounts for nearly half of the global automotive market value. As Tesla plans its expansion into India, these Tata companies are positioning themselves to play a larger role in the automaker’s supply chain, sources told Economic Times.
A senior industry insider revealed to ET that Tesla is “readying the supplier base in India,” indicating that Indian firms are poised to benefit from sourcing opportunities once the electric vehicle (EV) giant establishes manufacturing operations in the country. Tesla’s senior global procurement team has been engaging with suppliers, discussing the development and production of essential components like castings, forgings, electronics, and fabrication items.
Tata’s Role in Tesla’s Evolving Supply Chain
The Tata Group companies mentioned above already have global supply agreements with Tesla, contributing to the $2 billion worth of Indian supplies to the automaker in FY24, according to reports. While these agreements currently support Tesla’s international operations, the company’s decision regarding local production or contract manufacturing in India will shape the next phase of their collaboration.
Reports suggest that Tesla is now sourcing critical parts from over a dozen Indian companies, including Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge, and Sandhar Technologies.
India’s Growing Role in Tesla’s Supply Chain
Tesla is expected to source a variety of components from Indian suppliers, such as wiring harnesses, electric motors, gearboxes, forged parts, castings, sheet metal, high-value electronics, suspension systems, and electric powertrains, a person familiar with the matter told ET.
Tata Group companies will be playing a significant role in Tesla’s supply chain, with Tata AutoComp supplying engineering products for electric vehicles (EVs), Tata Technologies offering end-to-end product lifecycle management, and TCS providing circuit-board technologies. Tata Electronics is expected to supply critical components such as chips and vehicle control elements, including printed circuit board assemblies for Tesla’s battery management systems, motor controllers, and door controls. These contributions highlight Tata’s pivotal role in supporting Tesla’s operations and growth in the electric vehicle sector.
Meanwhile, reports also indicate that Tesla has instructed its suppliers of vehicles sold outside China to relocate component manufacturing out of China and Taiwan by next year.
Tesla’s India Manufacturing Plans
As part of its India expansion strategy, Tesla is reportedly in talks with several states—including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana—about potential locations for a manufacturing base. This move could further strengthen Tesla’s footprint in India and create new business opportunities for local suppliers.
Tesla Inc. has yet to respond to ET’s inquiries, and the individual Tata Group companies also declined to comment. News18 was unable to independently verify the report.
