Tata Group joins hands with Tesla, agreement for components and services
Tesla, one of the largest electric vehicle (EV) companies, and Tata Group companies have signed an international agreement for the supply of components and services. Under this, many Tata Group companies will be part of the supply chain of Tesla in the US. Tesla is also preparing to start business in India soon.
According to a media report, this agreement includes Tata Consultancy Services, Tata Technologies, Tata AutoComp and Tata Electronics of Tata Group. These companies will provide services and components to Tesla. Billionaire Elon Musk’s company has started talks with Indian suppliers. In this report, a source has been quoted as saying that Tesla is preparing a base of its suppliers in the country. However, this company has not confirmed its manufacturing plans. It is in talks with states like Gujarat, Rajasthan, Tamil Nadu and Maharashtra to set up an EV factory.
The company’s first showroom in India can open in Bandra Kurla Complex (BKC) in Mumbai. The company has leased a space of about 4,000 square feet in Maker Maxity building in BKC. A security deposit of about Rs 2.11 crore has been given for this. The rent of this space will be Rs 35.26 lakh per month. Tesla can start business in the country in the second half of this year. During Prime Minister Narendra Modi’s US visit last month, Tesla chief Elon Musk had a meeting with him. Initially, the company can import EVs from its factory in Berlin, Germany.
The central government is working on a new policy to promote EV manufacturing in the country. In March last year, the government reduced the custom duty on import of EVs to 15 percent with special conditions. In the new EV policy, car makers may need to reach a turnover of Rs 2,500 crore within the second year of starting the business. Along with this, the government can increase the exemption in import duty. The policy introduced last year required a minimum investment of Rs 4,150 crore to start manufacturing. Manufacturing had to be started within three years. The new EV policy may be announced soon.
