Tata AutoComp, Tata Consultancy Services (TCS), Tata Technologies, and Tata Electronics have become important suppliers for Elon Musk's electric vehicle (EV) company, Tesla, according to a report by The Economic Times, citing sources familiar with the matter.

The report indicates that Tata Group companies are looking to expand their role as Tesla sets up its supplier network in India. “We are very sure that once Tesla starts manufacturing here, Indian suppliers will benefit from sourcing opportunities,” ET quoted a top industry source as saying. Tesla's global procurement team has reportedly met with suppliers to discuss developing and producing key components like castings, forgings, electronics and fabricated parts. The Tata Group plays a major role in Tesla’s supply chain, providing nearly $2 billion worth of Indian-made parts to the US automaker in the 2024 fiscal year, according to a report.

Tesla is also sourcing key components such as wiring harnesses, electric motors, gearboxes and advanced electronics from more than a dozen Indian companies, including Samvardhana Motherson, Suprajit Engineering, and Bharat Forge. Although Tesla manufactures its core components, like motors and battery packs, it relies on global suppliers for various subassemblies. Tata AutoComp supplies engineering products for electric vehicles, while Tata Technologies handles product lifecycle management. TCS provides circuit-board technology and Tata Electronics plans to supply chips once a local plant—whether Tesla’s or a third party’s—becomes operational.

For now, Tata companies will continue their global sourcing agreements as Tesla considers setting up operations closer to its manufacturing hubs.  However, Tesla's final decision—whether to manufacture in India itself or opt for contract manufacturing—will shape the next steps, according to the report. Tesla has asked its suppliers to shift the production of components for non-China markets out of China and Taiwan by next year, according to an ET report. The company is in talks with Indian states like Gujarat, Tamil Nadu and Maharashtra to set up a manufacturing unit.

To enter the Indian market, Tesla plans to introduce the refreshed Model Y, which will be imported from its factory in Germany. Bookings for the car are expected to start in the second quarter of 2025, with deliveries beginning in the third quarter. Since Tesla's Berlin plant produces right-hand-drive cars, it will import the Model Y from there. However, the right-hand-drive Model 3, made in Shanghai, is unlikely to be included in the initial launch due to restrictions on Chinese car imports.