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Tata AutoComp, Tata Consultancy Services, Tata Technologies, and Tata Electronics form part of Tata Group which has Tesla as a client. These companies alone account for about half of the value in the American automotive market. As sources say, these companies aim to gain a foothold as Tesla looks to expand into India, as stated by Economic Times.
A senior industry source told ET that Tesla is “readying the supplier base in India,” said Indian companies will benefit from procurement prospects once the EV behemoth sets up shop in the nation. Reports suggest Tesla’s senior global procurement team has been in contact with suppliers regarding the execution of various essential parts, including castings, forgings, electronics, and fabrication goods.
Tata Group reportedly has over $2 billion in supply contracts with Tesla to be served in FY24, according to ET. They, together with the rest of Tata Group, are expected to fulfill the needs of Tesla as part of their international operations in return for Indian made products. These agreements support Business Aviation Engines Division but are anticipated to shift once Tesla confirms whether it will set up a factory or outsource production to India.
According to sources, Tesla seems to be attempting to strengthen its ecosystem by sourcing suppliers closer to their manufacturing plants. The report also states that the automaker is taking a closer look at possible tax incentives and duty tax exemptions while desgining their plan for India.
India's Expanding Role in Tesla's Supply Chain
An individual referenced in the article claimed that Indian vendors will be sub contracting to tesla in the future for products such as wiring harnesses, em electric motors, gear boxes, forged and cast parts, sheet metal, high end electronics, suspension units, and electric power trains.
Contribution by Tata includes:
Tata AutoComp: Supplies engineering components for EVs
Tata Technologies: Offers complete product lifecycle management
TCS: Provides Printed Circuit Board (PCB) technology
Tata Electronics is set to provide chips and other main vehicle control units such as PCBAs for the Battery management system, motor controller, and door controller for Tesla's control systems.
There are news articles saying that Tesla is already getting essential components from more than 12 Indian businesses, including Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge and Sandhar Technologies.
In the meantime, it has been claimed that Tesla has told suppliers of cars not sold in China to shift parts production outside of China and Taiwan, starting next year.
Tesla’s Plans for Manufacturing in India
According to ET, Tesla is negotiating with several states such as Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana for a possible manufacturing unit as part of the company's wider expansion plan for India. If finalized, this deal will further reinforce the presence of Tesla in India and also open new business avenues for local vendors.
However, ET’s questions were unanswered by Tesla Inc. as well as individual Tata Group companies, and the report remains unconfirmed by Moneycontrol.
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