The Tata Group has quietly solidified its position as a key global supplier to Tesla, the world’s most valuable electric vehicle (EV) manufacturer, according to a report by The Economic Times (ET). Several Tata subsidiaries — including Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics — have secured global agreements with Tesla, contributing a wide range of critical components and technological services that support the EV giant’s complex production and innovation processes.
Tata AutoComp provides engineering products tailored specifically for electric vehicles, while Tata Technologies delivers end-to-end product lifecycle management services, ensuring that Tesla's product development remains streamlined and efficient. TCS, known for its cutting-edge IT solutions, supports Tesla with advanced circuit-board technologies essential to the vehicle’s electronics. Meanwhile, Tata Electronics is expected to become a key player in the semiconductor supply chain, with its upcoming local manufacturing plant poised to deliver high-performance semiconductor chips — a crucial component in EVs. Additionally, Tata Electronics is anticipated to handle the production of printed circuit board assemblies (PCBA), vital for battery management systems, motor controller units, and door control mechanisms, making them integral to Tesla’s advanced vehicle architecture.
Tesla’s procurement officials have been actively engaging with Indian suppliers to explore the manufacturing of critical components such as castings, forgings, precision electronics, and specialized fabrication parts. Sources cited in the ET report suggest that Tesla is strategically positioning its Indian supplier network in preparation for a possible manufacturing base in the country. The company is said to view India as a promising alternative manufacturing hub, particularly in light of global supply chain disruptions and rising costs associated with Chinese production.
The scale of Indian contributions to Tesla’s supply chain is already substantial. In FY24 alone, Indian companies supplied components worth between $1.7 billion and $1.9 billion to Tesla. Industry insiders expect this figure to rise significantly in FY25 as Tesla’s sourcing from India intensifies. Beyond the Tata Group, Tesla has expanded its Indian supplier network to include industry leaders like Samvardhana Motherson, Suprajit Engineering, Sona BLW Precision Forgings, Varroc Engineering, Bharat Forge, and Sandhar Technologies.
Tesla’s decision to diversify its supply chain stems from a strategic push to reduce dependence on China and Taiwan, particularly after COVID-19-related disruptions exposed vulnerabilities. The EV maker has reportedly instructed suppliers to shift the production of select components outside these regions by next year. This move aligns with Tesla’s broader efforts to fortify its global supply network and mitigate geopolitical risks.
While Tesla has not made any formal announcements about an Indian manufacturing plant, the company remains in negotiations with multiple states, including Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Telangana, to identify a suitable location. The final decision hinges on the Indian government's stance regarding incentives, tax breaks, and duty waivers — factors that Tesla is closely monitoring.
If Tesla proceeds with setting up a manufacturing facility in India, the Tata Group’s role is expected to expand significantly, potentially making it one of the most influential players in Tesla’s global operations. This deepening partnership between Tata and Tesla signals a transformative moment for India’s electric vehicle industry, positioning the country as a major force in the global EV supply chain while solidifying Tata’s status as a leader in advanced automotive technology and manufacturing.
