Tesla Motors international operations, China India, FDI, supply chain, Suppliers, innovation, Ashok Leyland, service centres, charging station, Prime minister of India Narendra Modi,

2. • Tesla wants to increase its international
presence specially in Asia as there is growing
demand for EVs
• Tesla is expanding by establishing factories in
developing countries
• By building factories in Asian countries it can
provide EVs at affordable price, as import duty
will not be charged
• Currently tesla has factories in US and Europe
and in 2018 it had build factory in China
• The major reasons for its factory setup in Asia
are
Low Labour Cost
Low Environmental Cost
Tesla International Operations

3. Tesla operations in China using FDI
• Tesla has setup Gigafactory in Shanghai China
• Tesla procures 30% raw materials from local
market for its Gigafactory in China
• Tesla is able to reduce its cost due subsidies
provided by China Government
• Tesla has boosted the EVs in China with its
performance and pricing
• Tesla’s China Gigafactory is able to produce
500,000 units per year

4. • Tesla has fully owned distribution and
procurement setup
• Tesla forms tie ups with different suppliers for
long term basis e.g., giving space for Panasonic
for battery production
• It has formed digital supply chain using AI for
increasing the efficiency
• On demand production facility. Hence low
inventory
• Direct to customer i.e. no dealership
• Increased its distribution centers
Tesla Supply Chain

5. Entity Name Count
Tesla Motors Charger 13,997
Tesla Motors Store 438
Tesla Motors Service 98
• Tesla has setup it own charging
station so as to provide better
service
• 50,000 mile warranty policy to
boost consumer confidence
• Own Service station for better
after sales service
• Tesla’s long vision for battery has
led to build recycling unit at
Nevada USA which has shown a
positive aspect for nearly 100%
recycling of older batteries
Tesla Service

6. • Tesla will setup its Gigafactory in India and
proposed to have 12 Gigafactory all over
the world, currently it has 3 Gigafactories
• Tamil Nadu government has already
invited Tesla. Chennai is currently the auto
hub and is also called as Detroit of South
Asia
• Current Indian Government is moving
forward with EVs and solar energy, by
developing infrastructure and providing
tax benefits
• Tesla Gigafactory manufactures both solar
equipment's and batteries
Tesla’s Expected Indian Operations

7. Tesla Operation Strategy in India
• It will setup plant in areas where
Government provides land at cheaper rate
• It will form a strong supplier base from India
• At Start Tesla will collaborate with Indian
Companies for Distribution in India
• Production of cars , batteries and solar
panels will be executed by Tesla itself
• Tesla Gigafactory on full operation requires
a workforce of 7000 people
• It will have both robotic as well as human
interface system
• Tesla’s plant in India will also include
operations like exporting cars to south east
Asia region

8. Current Indian Suppliers for Tesla
Buy Decision

9. +
Indian companies willing to partner with Tesla
• Ashok Leyland has shown willingness to
partner with Tesla for electric cars
• Huge opportunity for Indian companies
and Tesla, who is about to enter India
• Collaborating with Ashok Leyland will
solve Tesla’s concerns about FDI
regulations
• Ashok Leyland has a strong financial
stability and company is making profits
• The company has received AA credit
rating

10. C U Soon.