Tesla suppliers eye expansion in India, states roll out red carpet: Report

Simultaneously, two European suppliers of Tesla are contemplating expanding their operations in Tamil Nadu.

Tesla Inc's component suppliers are exploring opportunities to expand operations in India despite uncertainties surrounding Elon Musk-owned carmaker's plans in the country, The Economic Times has said.

While the Centre continues its efforts to woo Tesla, state governments such as Gujarat and Tamil Nadu are aggressively pursuing its suppliers. They believe that building a robust supplier ecosystem would encourage Tesla to set up its operations in these regions, sources told ET.

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Three of Tesla's suppliers recently visited Gujarat to explore potential sites. These suppliers, who manufacture various components for the automotive sector, are keen on setting up facilities in the state, the report said.

Moneycontrol couldn't verify the report independently.

Two European suppliers of Tesla are also contemplating expanding their operations in Tamil Nadu. Known for its strong automotive and electronics manufacturing base, Tamil Nadu already hosts some of Tesla's suppliers. Among them, a European metal automotive component maker seeks to expand its presence, alongside a German manufacturer involved in a joint venture in Pune focusing on high-performance rubber parts, the report said.

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"In Tamil Nadu, these suppliers are expected to operate under their parent company names," the report quoted sources as saying.

The competition among states is intensifying, with Gujarat and Tamil Nadu leveraging their robust manufacturing ecosystems.

"With Tata Motors and Vinfast establishing large facilities in Tamil Nadu, these suppliers are also eyeing opportunities to serve Jaguar Land Rover (JLR) and Vinfast," sources added.

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Tesla, known for its preference for local supply chains to streamline production and reduce logistical costs, stands to benefit significantly from India's strong supplier network.