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Tata Group has emerged as the global supplier for Tesla, the electric vehicle company spearheaded by Elon Musk. According to The Economic Times (ET), several subsidiaries within Tata Group, including Tata Technologies, Tata AutoComp, Tata Consultancy Services, and Tata Electronics, are now integrated into Tesla's supply chain. Following the establishment of a global agreement with the EV manufacturer, these firms have begun providing essential services and components.
The Tata Group is gearing up for new ventures and expansion, especially if Tesla decides to set up a manufacturing plant in India. As reported by ET, discussions have started between Musk’s company and current Indian suppliers about potentially positioning production facilities near their existing manufacturing sites to develop a more robust supply ecosystem.
A reliable industry insider, who chose to remain unnamed, mentioned to ET, "Tesla is essentially laying the groundwork for its supplier network in India. We are confident that once Tesla commences local manufacturing, Indian suppliers will reap sourcing benefits."
Regarding its plans for expansion in India, Tesla is actively assessing its manufacturing options. The company is particularly focused on various incentives provided by the government, including tax benefits and potential duty waivers before making a decisive move. Due to stringent non-disclosure agreements in place, Tesla's suppliers are unable to share specific details pertaining to their engagement with the company, as per the report.
Even though Tesla has not formally announced its manufacturing plans, it has been engaging in conversations with multiple states, including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana, to explore the possibility of establishing a production facility. Should Tesla advance its intentions in India, Tata's role in its supply chain could expand considerably.
The contributions from Tata Group companies to Tesla include:
- Tata AutoComp, which provides engineering solutions for electric vehicles.
- Tata Consultancy Services (TCS) supplying circuit-board technologies.
- Tata Technologies, offering comprehensive product lifecycle management.
- Tata Electronics, anticipated to deliver semiconductor chips following the activation of its manufacturing facility.
Additionally, Tesla might look towards Tata Electronics for producing printed circuit board assemblies (PCBA), which are crucial for battery management, motor control units, and door operations.
