Tesla holds talks with Indian firms for sourcing critical parts

Tesla Inc is in talks with three Indian companies to source significant parts to enter the Indian market. The company is planning to source electrical, critical electronic, and mechanical parts. India-based firms Sandhar Technologies, Bharat Forge, and Sona Comstar are already providing components to it. Introductory talks are going on with tier 1 firms for supplying different parts like windshields, instrument panels, brakes, and power seats. According to the media reports, recently, a meeting took place between the Automotive Component Manufacturers Association of India (ACMA) and Tesla agents in India. The head of policy and development, Tesla India, Manuj Khurana, and a senior officer from global strategic sourcing and supply chain at Tesla are in talks with different tier I suppliers. Tesla's Electric Vehicle (EV) has fewer moving components than other engines. So, it may require few component providers. The company manufactures electric parts like battery packs and chargers, electric motors while getting the sub-assemblies and remaining components from worldwide suppliers. Sunjay Kapur, president of ACMA, said that India is quickly becoming a sourcing hub for components. He told the media that the company is looking to improve its exports as there is an enormous growth chance. At present, ACMA exports 80% of its output. The auto component sector requested the government to increase the production-linked incentive scheme to electronic parts and electric to promote local sourcing by global firms. EV purchase is increasing over many states owing to beneficial incentives and the deployment of charging infrastructure. As per the industry observers, two-three wheelers would go completely electric first. According to the experts, India's market for electric two-wheelers reached 5 million units in three years. Through the new financial support launched by the government, it would make vehicles even more affordable. Image Source Also read: Tesla reveals 5,000 km supercharging route in China