The Tata Group has expanded its worldwide supply chain to include Tesla, the most valued electric vehicle (EV) firm in the world.
In the current supply chain of Tesla, a number of Tata companies—including Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics—provide essential parts and services.
These Tata companies already have global agreements with Tesla and provide a range of services and parts. It is anticipated that their role will increase, particularly if Tesla establishes a production facility in India.
Tesla has been considering potential manufacturing alternatives in India. Before deciding, the business is keeping a careful eye on tax advantages, government incentives, and possible duty waivers.
Tesla is receiving specialized goods and services from several Tata Group companies:
- For EVs, Tata AutoComp provides engineering products.
- Complete product lifecycle management is a service provided by Tata Technologies.
- Circuit-board technologies are offered by TCS.
- As soon as its local manufacturing facility is up and running, Tata Electronics is anticipated to deliver semiconductor chips.
For printed circuit board assemblies (PCBA), which are essential for motor controller units, door control mechanisms, and battery management systems, Tesla may also turn to Tata Electronics.
Electric motors, battery packs, and chargers are among the essential EV parts that Tesla produces internally. However, it relies on different suppliers for a number of minor parts and subassemblies.
Tesla’s growing reliance on the nation’s manufacturing ecosystem is reflected in the move to Indian suppliers. Tesla purchased between $1.7 billion and $1.9 billion worth of parts from Indian suppliers in FY24 alone. In FY25, this trend is anticipated to pick up even more speed.
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