In a groundbreaking move, Tesla has secured a strategic deal with Tata Electronics to acquire semiconductor chips for its global operations, as reported by The Economic Times. The agreement, executed discreetly a few months ago, positions Tata Electronics as a reliable supplier for prominent global clients looking to establish a crucial segment of their semiconductor value chain in India.
While details of the sourcing deal between Tesla and Tata Electronics remain undisclosed, the US-based electric vehicle (EV) giant is keen on expanding its presence in India, the world’s fastest-growing major automotive market. Elon Musk, the visionary behind Tesla, is set to visit India this month for discussions with Prime Minister Narendra Modi, where potential investments in EV manufacturing facilities are expected to be unveiled.
Recent reports have hinted at Tesla’s interest in partnering with local companies to establish a foothold in India. Speculations suggest that Tesla is considering a joint venture with Reliance to build manufacturing facilities within the country, with a reported earmarked budget of $2 billion for upcoming ventures in India.
The Indian government’s recent approval of an Electric Vehicle (EV) policy aims to position the country as a global manufacturing hub for EVs, attracting investments from reputable global manufacturers. The policy mandates a minimum investment of Rs 4,150 crore with no maximum limit, emphasizing the importance of domestic value addition and setting timelines for establishing manufacturing facilities and commencing commercial production of EVs.
With the automotive industry rapidly shifting towards electric vehicles, Tesla’s strategic partnership with Tata Electronics and potential investments in India signal a significant step towards revolutionizing the EV market in the country. Stay tuned for more updates on this evolving story.