Tata Group Becomes Global Supplier For Tesla: To Shift Supply Chain From China And Taiwan
According to reports, the Tata Group of Companies is now a global supplier to Tesla. About half of the global automotive industry is represented by American electric vehicle (EV) manufacturers. In recent weeks, there has been a lot of discussion about Tesla’s entry into the Indian market.
Companies like Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics have grown to be crucial parts of Tesla’s supply chain by providing necessary parts and services. According to the article, several businesses have discreetly inked international contracts with the Elon Musk-led business.
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Whether the Tata Group of enterprises has begun to offer parts and services has not yet been confirmed. Tata’s role is anticipated to increase further as rumors of Tesla entering India soon gather traction every day, particularly if the company establishes a local production facility there.
Additionally, the report notes that Tesla is “readying the supplier base in India,” suggesting that Indian companies will get access to sourcing opportunities whenever the EV behemoth establishes manufacture there. The development and manufacturing of essential components, including as castings, forgings, electronics, and fabrication items, have reportedly been discussed by suppliers and Tesla’s top global procurement team.
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According to a person familiar with the situation who was quoted by ET, Tesla is expected to purchase a range of parts from Indian vendors, including wiring harnesses, electric motors, gearboxes, forged parts, castings, sheet metal, high-value electronics, suspension systems, and electric powertrains.
More than a dozen Indian businesses, including Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge, and Sandhar Technologies, are reportedly now supplying Tesla with necessary parts.
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.
