A game changer for Indian manufacturers?

Indian auto parts suppliers are gaining momentum as Tesla’s plan to enter India takes shape. Seven listed companies that provide parts to Tesla saw their stock prices rise today, fueled by investor excitement.

Stock Market Surge

Shares of Sandhar Technologies jumped by 5%, while SKF India, Sundaram Fasteners, Varroc Engineering, Suprajit Engineering, and Sona BLW also saw gains between 1% and 2.5%. However, Bharat Forge saw a slight dip of 0.17%.

Tesla’s India Entry: What’s Happening?

Elon Musk’s electric vehicle (EV) giant is looking for land in Maharashtra, with Pune emerging as a top contender. The state government has suggested locations near Chakan and Chikhali—already home to big names like Mercedes-Benz and Tata Motors.

The buzz around Tesla’s India entry picked up after CEO Elon Musk met Prime Minister Narendra Modi last week. Though setting up a full-fledged factory could take a few years, Tesla’s increasing focus on Indian suppliers is already making an impact.

A Huge Opportunity for Indian Auto Companies

Tesla currently sources parts from several Indian manufacturers for its global factories. Experts believe that if Tesla starts production in India, these suppliers will get more business—both for domestic and export markets.

“Tesla’s focus on cost-effective, high-quality components could bring in more opportunities for Indian companies specializing in precision manufacturing, lightweight materials, and advanced electronics,” said Shridhar Kallani, an auto analyst at Axis Securities.

Challenges Ahead

Despite the excitement, Tesla’s pricing strategy in India remains unclear. EV sales in India are still growing, with just under 100,000 electric cars sold last year—far behind China’s 1.1 million. Import duties have also been a hurdle, but recent government cuts could make Tesla’s entry smoother.

Tesla is also hiring in India, posting multiple job listings and reportedly reaching out to Tata Motors executives to fill key roles.

What’s Next?

While Tesla’s plans are still unfolding, one thing is clear: its entry could shake up India’s auto industry, opening doors for more local manufacturers to enter the global EV market.