Tata electronics for Tesla cars
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