Elon Musk’s faces stiff challenge from Chinese car company, Tesla seeks help from India, in talks with Ratan Tata’s…, and…
To face competition from Chinese electric car manufacturer BYD, Tesla has asked for help from Indian companies. Elon musk company is in talks with Indian chip manufacturing companies to meet its supply chain demand and boost production for the global market.
BYD Competition To Tesla
Chinese EV maker BYD is giving tough competition to Tesla, in major EV markets like Europe. BYD, now the world’s largest electric vehicle company, generated $170 billion in revenue last year, which is more than Tesla’s $155.5 billion. Also BYD’s market valuation is at $100 billion, compared to Tesla’s $97.7 billion.
Tesla Approaches Indian Companies
To face this challenge created by BYD’s, Tesla is trying to take help from Indian chip manufacturers and maintain its supply of semiconductors which is needed in EV production. Tesla has initiated talks with three major players
- Micron – It is the American memory chipmaker with facilities in Gujarat, India which does assembling and test manufacturing.
- CG Semi – A Mumbai-based unit of the Murugappa Group, deals in outsourced semiconductor assembly and test (OSAT) solutions. This joint venture also involves Renesas and Stars Microelectronics.
- Tata Electronics – Tesla is partnered with them for sourcing semiconductors for its global manufacturing needs.
Tesla representatives held discussions with these companies around six weeks ago. These conversations were mainly focused on enhancing production capabilities and securing supplies of 28-65nm node semiconductors, crucial for Tesla’s electric vehicles (EVs). The EV maker also plans to grow its packaging production by over 10% annually.
Micron will help in assembling and testing processes to meet domestic and international demand. CG Semi will focus on OSAT services for semiconductor production. Tata Electronics will be a supplier in Tesla’s global manufacturing ecosystem.
Why Tesla Needs India’s Help?
Tesla’s vehicles need a diverse range of chips and specialized packaging architectures and EV-specific nodes. With the help of Indian semiconductor companies, Tesla can address supply chain vulnerabilities with consistent production and global expansion.
BYD’s rapid rise has impacted Tesla’s dominance. With higher revenue and valuation, BYD has overtaken Tesla in the EV market.
News