☰
According to industry estimates, Indian suppliers provided components worth approximately $2 billion to Tesla in FY24, with the Tata Group playing a significant role in this supply network.
Several Tata Group companies have strategically positioned themselves as key suppliers to Tesla, the world's most valuable automaker, strengthening their role in the global electric vehicle (EV) supply chain. Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics have reportedly secured agreements to supply critical components and services to Elon Musk-led Tesla, contributing to India's growing footprint in the EV sector.
According to industry estimates, Indian suppliers provided components worth approximately $2 billion to Tesla in FY24, with the Tata Group playing a significant role in this supply network. Tesla has been actively engaging with its suppliers, discussing plans to set up local manufacturing facilities near its future production hubs, a move seen as preparation for its eventual entry into the Indian market.
Also read: Husband-wife joint account: Earn Rs 10,000 monthly with THIS Post Office scheme!
"Tesla is, in a way, readying the supplier base in India," a senior industry source said. "Once Tesla starts manufacturing here, Indian suppliers will benefit from large-scale sourcing opportunities." Senior Tesla executives have reportedly held discussions with multiple Indian suppliers about expanding production of key components, including castings, forgings, electronics, and fabrication items.
The Tata ecosystem plays a crucial role in Tesla's global supply network:
While these Tata companies continue to fulfill global supply agreements, their future strategies may depend on whether Tesla opts for direct manufacturing or contract production in India.
Tesla has been reassessing its sourcing strategy following global supply chain disruptions, particularly the COVID-19 pandemic. As part of its efforts to reduce dependency on China, the EV giant is exploring alternative sourcing locations for critical components, including wiring harnesses, electric motors, gearboxes, forged and casted components, sheet metal parts, advanced electronics, and suspension systems.
Also read: Stock market opens in red as global uncertainty weighs, April 2 tariff risks in focus
The company has already established procurement ties with several Indian firms, including Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge, and Sandhar Technologies. The value of Tesla’s India-based sourcing surged to an estimated $1.7-1.9 billion in FY24 and is expected to rise further in FY25.
Additionally, Tesla is in discussions with multiple Indian states—including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana—for the potential establishment of a local manufacturing facility.
subscribe to Asianet Newsable WhatsApp channel by clicking here.