Tata chips in Tesla Car? It seems a little unbelievable, but such a sign is being observed. It has emerged that Tesla has signed a strategic agreement with Tata Electronics to buy semiconductor chips used in its global operations. Economic Times has given such news quoting some officials connected with this development.
Tata Electronics, a Tata Group company, is making significant investments in the semiconductor business. After this, this agreement has been signed between Tata Electronics and Tesla. The agreement is also significant as it will provide an opportunity for Tata to establish itself as a trusted supplier to top tier global customers. With this, India’s name will also be added to the semiconductor value chain.
Tesla is interested in entering the Indian market
Tesla, the leading American electric vehicle (EV) company is keen to enter India, the world’s fastest growing major automotive market. Tesla promoter Elon Musk is going to visit India this month for a meeting with Prime Minister Narendra Modi. Meanwhile, Musk is expected to announce potential Indian investments, including funding commitments for EV manufacturing facilities. Currently, his company is the world’s largest automotive company by market value.
There is no official confirmation
According to our associate ET, Tesla and Tata Electronics, which is spearheading the Tata Group’s foray into semiconductor manufacturing, did not comment on the development. Additionally, the cost and other details of the Tesla-Tata electronics sourcing deal were not known.
Relief has been received from the government
Recent policy changes have allowed automakers to import EVs priced at $35,000 or more at a 15% lower import duty. But this will depend on the automakers’ commitment to invest $500 million over three years to set up a manufacturing plant in India. Tesla may initially bet on premium, feature-based electric models for the Indian market, besides looking to produce entry-level electric cars locally.
Musk will invest 2-3 billion dollars in India
CNBC-TV18 reported that Elon Musk will announce plans to invest 2-3 billion dollars in India. Tesla not only wants to manufacture cars for India, but also wants to export them from here to the global market.
Apart from this, Musk can also start satellite based broadband services in India soon. CNBC-TV18 reported that regulatory approvals for Starlink are in the final stage and the company is expected to get the licence soon.
The government’s new EV policy made Tesla’s entry easier.
A month ago, the Indian government changed the EV policy. According to the new policy, the import duty on import of some models was reduced from 100% to 15%. For this, investors will have to invest at least 50 million dollars (about ₹ 4,172 crore). With this new policy of the government, entry into India became easier for American businessman Elon Musk’s EV company Tesla, which was looking for a way to enter India for a long time.
-Rahul Dubey