Tata Companies Sign Global Agreements With Tesla For Offering Services: Report

Tata Group has reportedly become the global supplier to Tesla, the electric vehicle manufacturer led by Elon Musk. Under this partnership, multiple firms under the umbrella of Tata Group, including Tata Technologies, Tata AutoComp, Tata Consultancy Services, and Tata Electronics, are now a part of Tesla's supply chain, as per The Economic Times (ET). After signing a global agreement with the EV maker, these companies have become the provider of services and components.

The Tata group is currently preparing for new opportunities and further expansion, particularly if Tesla establishes a manufacturing facility in India. According to the ET report, billionaire Musk's company has begun discussions with current Indian suppliers regarding the potential to set up facilities close to their manufacturing hubs to strengthen the supply ecosystem.

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"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," a top industry source told ET, requesting anonymity.

Tesla's India Expansion

Tesla is evaluating its possibilities for production in India. Nevertheless, the company is paying close attention to government incentives, tax advantages, and possible duty exemptions before reaching a final decision. Tesla maintains strict non-disclosure agreements with its suppliers, which prevent them from disclosing details about their roles according to the report.

Although Tesla has not officially confirmed its manufacturing intentions, it has been in discussions with various states, such as Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana, to investigate the establishment of a production facility. Should Tesla proceed with its plans for India, Tata's involvement in its supply chain may increase significantly.

Tata Group Companies' Supplies To Tesla

• Tata AutoComp supplies engineering products of EVs
• TCS provides circuit-board technologies
• Tata Technologies is offering end-to-end product lifecycle management
• Tata Electronics is expected to supply semiconductor chips after its manufacturing plant becomes operational.

Tesla might consider Tata Electronics for the production of printed circuit board assemblies (PCBA), essential for battery management systems, motor control units, and door control functions.