The Tata Group has quietly established itself as a significant global supplier for Tesla, the world’s most valuable electric vehicle (EV) company. As per The Economic Times, several Tata companies, including Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics, have integrated into Tesla’s supply chain, providing crucial components and services.
These Tata firms have reportedly signed global agreements with Tesla, contributing to nearly $2 billion worth of Indian supplies to the EV maker in the fiscal year 2024. Their involvement is expected to grow, particularly if Tesla decides to set up manufacturing operations in India.
Tesla’s senior procurement officials have been engaging with Indian suppliers about manufacturing specific components, including castings, forgings, electronics, and fabrication parts. An industry source told ET, “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.”
As part of its strategy to diversify its supply chain and reduce dependence on China, Tesla is now sourcing from over a dozen Indian companies beyond the Tata Group. The company has reportedly instructed suppliers to shift production of certain parts outside of China and Taiwan by next year.
While Tesla evaluates its options for manufacturing in India, it is closely monitoring government incentives, tax benefits, and potential duty waivers. The company has been in talks with several states, including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana, to explore setting up a production facility.
This development marks a significant milestone for India’s automotive and technology sectors, potentially paving the way for increased involvement in global EV supply chains.
