Tata Group joins Tesla’s global supply chain, eyes bigger role in India expansion
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Tata Group has emerged as a key global supplier for Tesla, the electric vehicle (EV) giant led by billionaire Elon Musk.
According to a report by The Economic Times (ET), multiple Tata companies - including Tata Technologies, Tata Consultancy Services (TCS), Tata AutoComp, and Tata Electronics - have secured agreements with Tesla and are now integral to its supply chain.
These partnerships have already contributed to an estimated $2 billion worth of Indian-sourced components, such as castings, forgings, electronics, and fabricated parts, for Tesla in the financial year 2024. With the EV manufacturer actively diversifying its supply network, sourcing from India is expected to increase further.
The Tata Group is positioning itself for greater opportunities, particularly if Tesla establishes a manufacturing facility in India. Tesla has reportedly begun discussions with existing Indian suppliers about setting up production units near their facilities to strengthen the supply ecosystem.
A senior industry source told ET, “Tesla is, in a way, preparing the supplier base in India. Once it starts manufacturing here, Indian suppliers will gain significantly.”
Tesla’s procurement executives have been engaging with multiple suppliers in India to explore the feasibility of producing specific components domestically.
The American automaker is currently evaluating potential manufacturing sites in India and assessing the benefits of government incentives, tax breaks, and duty exemptions before making a final decision. While Tesla has not confirmed its production plans, it is reportedly in talks with several states, including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana, regarding potential locations for a facility.
If Tesla proceeds with its India manufacturing plans, Tata’s involvement in its supply chain is expected to grow further. However, Tesla enforces strict non-disclosure agreements with its suppliers, limiting public details about their contributions.
Key Tata companies supplying to Tesla are:
Tata AutoComp – Supplies specialized EV components.
Tata Technologies – Provides product lifecycle management solutions.
TCS – Delivers circuit board technologies.
Tata Electronics – Supplies semiconductor chips.
Beyond Tata Group, Tesla has also partnered with several leading Indian manufacturers, including Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge, and Sandhar Technologies. However, Tata Electronics is expected to be a crucial supplier for vehicle control components such as printed circuit board assemblies for battery management systems, motor controllers, and door control mechanisms.