Tata Group ties an alliance with Elon Musk's Tesla for EV supply chain: Report

Tata Group companies such as Tata AutoComp Systems, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics have gradually established themselves as key global suppliers to Tesla and are preparing for an even larger role if the Elon Musk-led EV giant ventures into the Indian market, reported The Economic Times.

The newspaper reported that Tesla is in the process of preparing its supplier network in India, allowing Indian companies to take advantage of sourcing opportunities once the electric vehicle (EV) market leader begins manufacturing in the country. Tesla's senior global procurement team has been in talks with suppliers about the development and production of key components, including castings, forgings, electronics, and fabricated items, the report said.

In September 2023, Union commerce minister Piyush Goyal said that Tesla was planning to source auto components worth $1.7 billion to $1.9 billion from India in FY24. It is unclear if Tesla sourced auto components worth $1.7 billion from India last fiscal.

Tesla, which accounts for almost half of the global automotive industry's market capitalisation, is looking to open a showroom in Mumbai. The Elon Musk-led company earlier in March signed a lease agreement for its maiden outlet in India. Tesla is leasing a 4,003 square-foot showroom on the ground floor of the 2 North Avenue commercial complex at Maker Maxity, located in Mumbai’s Bandra Kurla Complex (BKC) business hub, for a five-year term. Tesla’s India division will pay a monthly rent of over ₹35.26 lakh for the space, which includes some parking spots, according to CRE Matrix, a real estate data analytics firm. The company has also made an initial security deposit of ₹2.11 crore. The rent will increase by 5% annually, reaching ₹42.86 lakh by the final year of the lease. This deal, priced at ₹881 per square foot, surpasses the previous record set by Apple Inc., which leased space at ₹738 per square foot earlier in January.

This lease marks an important step for the electric vehicle (EV) giant as it looks to tap into India’s rising demand for premium electric cars.

Tesla is actively hiring for over 20 roles in India, including a store manager position in Mumbai and various other positions in Pune. Job openings listed on LinkedIn include roles such as consumer engagement manager, order operations specialist, customer support specialist, service manager, sales adviser, business operations analyst, service technician, charging developer, software engineer, application product engineer, and parts adviser, among others.

Although Tesla plans to sell imported EVs in India, its manufacturing plans for the country have not yet been confirmed. In February, U.S. President Donald Trump stated that Elon Musk’s intentions to bring Tesla to India would be "unfair" to the United States. He commented on 'The Sean Hannity Show', saying, "If he (Musk) built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair." Trump added that every country takes advantage of the U.S. with tariffs, making it difficult for Musk to sell cars in India. Musk, also appearing on the show, agreed, noting that India imposes a 100% import duty on cars.