Tata Group has reportedly become a global supplier for Elon Musk's electric vehicle (EV) company, Tesla. Several Tata firms, including Tata Technologies, Tata Consultancy Services (TCS), Tata AutoComp, and Tata Electronics, are now integral to Tesla's supply chain, according to a report by The Economic Times (ET). These companies have signed global agreements to supply critical components and services to Tesla, which holds a significant share of the global automotive market.
In the fiscal year 2024, Tata firms contributed approximately $2 billion worth of supplies to Tesla, including components such as castings, forgings, electronics, and fabricated parts. As Tesla looks to diversify its supply chain, the sourcing from India is expected to increase in the future.
With Tesla exploring the possibility of setting up a manufacturing unit in India, Tata Group is positioning itself to capitalize on expanded opportunities. Tesla has been in talks with Indian suppliers about establishing facilities near their existing manufacturing centers to strengthen the supply ecosystem. Industry sources indicated that once Tesla starts manufacturing in India, it is expected that Indian suppliers, including those from Tata, will benefit from increased sourcing opportunities.
Tesla's expansion plans in India are under careful evaluation, with the company considering various factors such as government incentives, tax benefits, and potential duty waivers before finalizing its decision. The EV giant is reportedly in talks with multiple states, including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana, to assess suitable locations for a production facility.
If Tesla moves forward with its plans, Tata Group’s role in the supply chain could further grow. Tata companies such as Tata AutoComp, Tata Technologies, TCS, and Tata Electronics provide specialized EV products, product lifecycle management services, circuit-board technologies, and chips, respectively. These contributions are crucial to Tesla's production of advanced electric vehicle components.
While Tesla maintains strict non-disclosure agreements with its suppliers, it is expected to source key components like electric motors, wiring harnesses, suspension systems, and electronic components from Tata, particularly for Tesla's battery management systems and motor controllers. The growing collaboration between Tata Group and Tesla could strengthen India's position as a key player in the global EV supply chain.
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