Tesla partners with Tata Electronics for semiconductor supply
What's the story
US electric vehicle manufacturer Tesla has formed a strategic partnership with Tata Electronics for the procurement of semiconductor chips, as per the Economic Times.
This agreement positions Tata Electronics as a key player in India's semiconductor value chain, serving international clients.
The partnership also highlights Tesla's plans to establish an extensive supply chain in India, beyond just generating local revenue.
CEO visit
Musk's anticipated visit to India and potential investments
Tesla CEO Elon Musk is expected to visit India soon, where he will meet with Prime Minister Narendra Modi.
In a tweet on April 10, Musk expressed his anticipation for the meeting.
During this visit, Musk is expected to announce Tesla's much-awaited plan to produce electric vehicles in the country.
The company will establish a manufacturing facility in India and is already scouting locations. The plant is estimated to cost around $2 billion.
Policy shift
New Indian EV policy aligns with Tesla's expansion plans
The Indian government's recent unveiling of a new electric vehicle (EV) policy could benefit Tesla's expansion plans.
The policy reduces import taxes from 100% to 15% on specific models if a company invests at least $500million and establishes a factory in the country.
This change comes as Tesla is expanding into the Indian market, coinciding with slowing demand in its primary markets - the US and China.
Workforce expansion
Tata Electronics bolsters workforce ahead of partnership
In preparation for the strategic partnership with Tesla, Tata Electronics has strengthened its workforce by hiring 50-60 high-level expatriates in recent months.
The company plans to leverage their expertise in semiconductor technology, strategic planning, and design to enhance its business operations.
Tata Electronics has established semiconductor manufacturing facilities in Hosur (Tamil Nadu), Dholera (Gujarat), and Assam, with further expansion plans to establish a robust supply chain in India.
The company has invested $14 billion in its operations to date.