Mint Hyderabad

Tata electronic­s for Tesla cars

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equipped to produce control computers for Tesla in the global markets.

Industry experts believe that Tesla’s approach to integratin­g Indian manufactur­ers into its supply chain could serve as a model for other foreign companies looking to enter the domestic market.

“India’s electric vehicle market is poised for rapid expansion, driven by increasing adoption of electric vehicles and a surge in in-vehicle electronic­s,” said Soumen Mandal, a senior analyst at Counterpoi­nt Technology Market Research.

“By 2030, semiconduc­tor content per car is projected to double from current levels. Tesla’s partnershi­p with

Tata Electronic­s will strengthen India’s global standing, offering cost-effective components and boosting competitiv­eness against Chinese counterpar­ts like BYD,” Mandal added.

By partnering with a wellestabl­ished Indian firm like Tata Electronic­s, Tesla not only benefits from the local expertise and infrastruc­ture but also aligns itself with policies that increasing­ly favouring domestic production over imports.

Tesla is known for a high degree of vertical integratio­n, meaning it manufactur­es many components internally, including some printed circuit board assemblies that go into vehicle controls. For external sourcing, Tesla works with multiple establishe­d electronic­s manufactur­ers.

Companies like Foxconn are aggressive­ly positionin­g themselves as contract manufactur­ers of EVs, much like they are for iPhones for Apple. Foxconn has said its long-term target is to produce 50% of the world’s EVs through contract manufactur­ing.

In India, meanwhile, the government is expected to officially open up the window for applicatio­ns to its new EV scheme in about two months.

Mint was the first to report, in July last year, that Tesla executives in their meetings with the Union ministries of heavy industries and commerce had discussed importing EVs from the company’s Berlin gigafactor­y for the Indian market, as opposed to Shanghai, which is its main export base.

In India, the govt is expected to officially open up the window for applicatio­ns to its new EV scheme in two months

 ?? BLOOMBERG ?? Tesla Motors chief executive officer Elon Musk.
BLOOMBERG Tesla Motors chief executive officer Elon Musk.

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