Tata Group Now Supplies Tesla

The Tata Group and Tesla have become partners amid Tesla’s entry into the Indian market. This partnership was formed as Tata AutoComp and Tata Consultancy Services have positioned themselves as global suppliers for Elon Musk-led Tesla Motors. This can be interpreted as a bold move by the Tata Group, which could position it positively in the worldwide market.

How Would This Benefit India?

The Tata Group’s companies have secured global agreements with Tesla as essential partners in their supply chain network, contributing approximately USD 2 billion worth of Indian supplies to the EV manufacturer.

This could suggest that Tesla is looking forward to manufacturing EVs in India, which would provide thousands of skilled job opportunities to suppliers in India. Apart from this, we would also get locally assembled Tesla EVs for more affordable rates. Tesla is likely to source essential vehicle control components from Tata Electronics.

Tesla’s India Launch

If Tesla launches in India, we would likely receive their entire lineup of cars globally except the Cybertruck, including the Model S (their premium sedan), the Model X (their premium SUV), the Model Y (their more affordable SUV), and the Model 3 (their affordable, compact sedan).

Rivals and Pricing

It is predictable that with the entry of Tesla, the most popular models will be the Tesla Model 3 and the Tesla Model Y due to their affordability. Prices of these vehicles are unknown as of now but as they will be locally manufactured, pricing is expected to start from Rs 35-40 Lakh (ex-showroom) for the Model 3.

This pricing would pit the Tesla Model 3 directly against the BYD Seal that starts from Rs. 41 Lakh (ex-showroom). Tesla’s more premium models would go against the likes of the BMW i4, Kia EV6 and the Volvo XC40 Recharge.

Verdict

This partnership between Tata and Tesla Motors is going to be beneficial to both parties along with the Indian market. This would open more opportunities for trained professionals seeking expertise and experience here in India.