US EV automaker Tesla has signed a strategic deal with Tata Electronics to acquire semiconductor chips for its worldwide operations, according to a report by The Economic Times. The reported deal, which was executed discreetly as per the report, shows Tesla is interested in building a supply chain in India that goes beyond local revenue generation.
This comes in the backdrop of the EV automaker's chief Elon Musk's reported visit to India, where he will meet Prime Minister Narendra Modi and is expected to announce potential Indian investments
Moneycontrol couldn't independently verify the report.
"Looking forward to meeting with Prime Minister Narendra Modi in India!," Musk had said on April 10 in a post on X.
In March, the Centre unveiled a new EV policy lowering import taxes to 15 percent from 100 percent on some models if a manufacturer invests at least $500 million and sets up a factory in India.
Tesla's push in to the country comes at a time the EV automaker is enduring slowing demand in its primary markets the US and China. The company reported a drop in first-quarter deliveries that missed analyst estimates.
Also Read | Why Musk’s visit to India in April is a strong boost for brand Modi
Recently, Tesla stepped up its attempts to increase its market share in India and was reportedly actively looking for a suitable site to build a state-of-the-art manufacturing facility.
The state governments of Gujarat and Maharashtra have made the company attractive land offers for the construction of an EV manufacturing unit.
Tesla officials are expected to visit India later in April to look at sites for a manufacturing plant that would require an investment of about $2 billion, according to a report by Reuters.
With inputs from agencies
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