This story was first published on the Benzinga India portal.
Electric vehicle giant, Tesla Inc. TSLA, has reportedly entered into a strategic agreement with Tata Electronics to source semiconductor chips for its worldwide operations, signifying the company's increasing focus on the Indian market.
As per a report from ET, the deal was discreetly signed a few months ago. With this agreement, Tata Electronics is expected to emerge as a crucial supplier for major global firms, enhancing India's position in the semiconductor value chain.
Although the specifics of the deal remain undisclosed, ET sources close to the matter indicate that Tata Electronics is on a hiring spree, recruiting 50-60 high-level foreign professionals to boost its semiconductor technology and strategic operations.
The firm has already set up manufacturing units in Hosur, Dholera, and Assam, with additional expansion plans backed by a $14 billion investment into its semiconductor business. This move is part of Tata's wider agenda to foster domestic technology and tap into vast global experience in the sector.
Simultaneously, Tesla's CEO and chairman, Elon Musk, is planning a visit to India to meet Prime Minister Narendra Modi, where he is expected to announce investments in EV manufacturing facilities. This initiative is part of Tesla's strategy to penetrate India, the world's fastest-growing major automotive market.
Industry insiders predict that Tesla will inject between $2-3 billion into India for the production of electric vehicles, which currently have a minor but expanding market share. Recent policy amendments have lowered import duties for EVs priced above $35,000 to 15%, given that automakers pledge to a $500 million investment in local manufacturing within a span of three years. Tesla aims to launch high-end electric models and potentially produce entry-level cars locally.
Read Next: As Elon Musk Plans India Trip, DOT Fast-Tracks Starlink Licence Application: Report
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
