Tata Group of companies has reportedly become a global supplier for Tesla. The American electric vehicle (EV) manufacturer represents approximately half of the global automotive industry. Tesla’s entry into the Indian market has been a hotly discussed topic in the last few weeks.
According to the Economic Times (ET), including Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics, have become integral to Tesla’s supply chain, supplying essential components and services. The report reveals that these companies have quietly signed global agreements with the Elon Musk-led company.
It is yet to be verified if the Tata Group of companies has already started supplying parts and services. With reports of Tesla entering India soon gaining momentum everyday, Tata’s involvement is expected to grow even more, especially if the former sets up a local manufacturing unit in the country.
The report also highlights that Tesla is “readying the supplier base in India,” indicating that once the EV giant sets up manufacturing in the country, Indian firms will benefit from sourcing opportunities. Tesla’s senior global procurement team has reportedly interacted with suppliers to discuss the development and production of key components, including castings, forgings, electronics, and fabrication items.
More Indian suppliers join hands with Tesla
Tesla is anticipated to procure a variety of components from Indian suppliers, including wiring harnesses, electric motors, gearboxes, forged parts, castings, sheet metal, high-value electronics, suspension systems, and electric powertrains, according to a source familiar with the matter cited by ET.
Reports suggest that Tesla is now acquiring essential parts from more than a dozen Indian companies, including Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge, and Sandhar Technologies.
According to ET, different Tata Group companies are providing specialised products and services to Tesla:
- Tata AutoComp is supplying engineering products for EVs.
- Tata Technologies is offering end-to-end product lifecycle management.
- TCS is providing circuit-board technologies.
- Tata Electronics is expected to supply semiconductor chips including printed circuit board assemblies for Tesla’s battery management systems, motor controllers, and door controls.
Tesla has reportedly directed suppliers to relocate the production of certain parts outside China and Taiwan by next year. This move aligns with its broader strategy to reduce reliance on China, especially in light of supply chain disruptions caused by the Covid-19 pandemic. While Tesla manufactures essential EV components such as electric motors, battery packs, and chargers in-house, it relies on external suppliers for various sub-assemblies and smaller components.
Source: The Economic Times
