Elon Musk-led Tesla has joined hands with Tata Electronics, thereby haralding a new era in the Indian EV Market. This partnership is bound to play a key role in the carmaker’s Indian operations.
You may also read: Tesla Starts Making RHD Cars in Germany for Exports to India
Tesla Partners with Tata Electronics as a Part of a Strategic Semiconductor Deal
Tata Electronics has been a major supplier of semiconductor chips for Tesla’s global operations. This pretty much points out the carmaker’s interest in the local semiconductor supply chain. The carmaker now aims to tap into India’s EV sector, with Elon Musk set to meet with Prime Minister Narendra Modi to discuss plans for setting up his company’s manufacturing facility in India.
Tesla will likely invest $ 2-3 billion in India. Much of this is earmarked for producing some of its electric cars. Clearly, the recent revisions in policies, such as the reduction of import duties on EVs costlier than $ 35,000, have played an essential role in attracting such investments. Meanwhile, Tata Electronics has enhanced its capability to serve Tesla by strengthening its workforce.
You may also like: Indian Vlogger Test Drives India-Bound Tesla Model Y
You may also like: Xiaomi SU7 EV Launched, Undercuts Tesla Model 3
Diversification and Supply Chain
The partnership between Tata Electronics and Tesla highlights the shift in focus from China for the procurement of critical components. It may be noted here that even though Tesla manufactures many electric components, it relies heavily on global suppliers for sub-assemblies and other parts. Tata Electronics has invested significantly in semiconductor manufacturing facilities across India and assembled a seasoned team with extensive domain expertise, positioning itself as a reliable partner for Tesla’s EV ambitions.
The collaboration between Tesla and Tata Electronics represents a significant stride towards a robust semiconductor ecosystem in India, further fueling the country’s EV revolution and technological advancement.
