Several Tata Group companies have reportedly partnered with electric vehicle (EV) giant Tesla, contributing to its global supply chain network. According to The Times of India, firms like Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics played a role in supplying $2 billion worth of components from India to Tesla in FY24.
Tesla’s Plans to Expand Supplier Base
Tesla is also engaging with suppliers to establish facilities closer to its manufacturing hubs. This strategic move aims to strengthen its supply ecosystem while reducing dependency on certain regions.
An industry source told The Economic Times,
“Tesla is, in a way, readying the supplier base in India. We are very sure that once Tesla starts manufacturing here, Indian suppliers will benefit from sourcing opportunities.”
Senior procurement executives from Tesla have reportedly held meetings with several existing suppliers, indicating deeper engagement with Indian manufacturers.
Reducing Reliance on China
The COVID-19 pandemic exposed major supply chain vulnerabilities, particularly in China. In response, Tesla has been actively diversifying its supplier network by sourcing components from alternative locations, including India.
At present, India serves primarily as a development and supply hub for Tesla, but this relationship is expected to expand in the coming years.
Key Indian Suppliers for Tesla
Tesla has already formed partnerships with several Indian manufacturers, including:
- Samvardhana Motherson
- Suprajit Engineering
- Sona BLW Precision Forgings
- Varroc Engineering
- Bharat Forge
In FY24, Tesla sourced components worth approximately $1.7 to $1.9 billion from Indian suppliers. This trend is expected to continue growing in FY25, strengthening India’s role in the global EV supply chain.
Tesla’s Future in India
Beyond sourcing, Tesla is reportedly exploring the possibility of setting up manufacturing facilities in India. Discussions are underway with state governments, including Rajasthan, Tamil Nadu, Gujarat, Telangana, and Maharashtra.
If finalized, this move could significantly boost India’s EV manufacturing sector while positioning the country as a key player in Tesla’s global operations.
