Ahead Of Debut In India, Tesla Enters Into Strategic Deal With Tata Electronics – Check Details (image source: Today Technology Market ResearchDigital)
Tesla Tata: Elon Musk-owned Tesla, the electric carmaker, has reportedly entered into a strategic agreement with Tata Electronics to procure semiconductor chips for its global operations, according to an ET report officials familiar with the matter said about the agreement.
As per the report, the agreements were executed discreetly a few months ago, which holds Tata Electronics as a reliable supplier for top-tier global car market Tesla to establish a crucial segment of their semiconductor value chain within India.
Tesla’s Interest in India
Tesla is keen to enter India, which is the world’s fastest-expanding major automotive market. Elon Musk, the promoter of Tesla, is expected to visit India this month for a meeting with Prime Minister Narendra Modi, during which potential Indian investments, including commitments toward EV manufacturing facilities, might be announced. Tesla is currently the world’s largest automotive company by market value.
Both Tesla and Tata Electronics, the leading player in the Tata group’s semiconductor manufacturing venture, have not officially commented on the deal. The specifics of the agreement, including its value and other details, could not be immediately ascertained.
Tesla’s Potential Investment in India
While estimates vary, industry experts suggest that Tesla might invest at least USD 2-3 billion in India to manufacture electric cars. Recent policy changes allowing reduced import duties on EVs priced at USD 35,000 or higher, contingent on investment commitments by automakers, could influence Tesla’s initial strategy in India.
Tata Electronics’ Expansion
Tata Electronics has recently expanded its workforce by recruiting 50-60 top-level expatriates to leverage their expertise in semiconductor technology and strategic planning. Randhir Thakur, CEO and MD of Tata Electronics, has been instrumental in bringing in top talent, with his extensive experience in the semiconductor sector.
Tata Electronics has made significant investments in semiconductor manufacturing facilities across various locations in India, with ambitious plans for further expansion. The company has invested USD 14 billion to date and has focused on indigenous technology development, backed by a team with over 1,000 years of global domain experience.
