Tesla is the world’s largest electric vehicle giant, with plans to invest roughly $2 billion to set up a manufacturing plant in India. According to reports, The company plans to buy auto parts from Indian manufacturers worth up to $15 billion. In addition, the business is planning to consider manufacturing certain types of batteries in India to reduce costs.
According to recent reports, the Indian government is on the approach of negotiating a deal with electric vehicle (EV) giant Tesla to allow the Elon Musk-led business to open a production factory in the nation within the next two years, according to a Bloomberg story.
The battery is the heart of the electric vehicle and the most expensive component of electric vehicles (EVs), accounting for around 40-50 percent of the car’s total cost.
Panasonic is one of Tesla’s primary battery suppliers. Panasonic Energy India, a subsidiary of Global Panasonic Corporation, is involved in the manufacturing and delivery of dry cell batteries in India.
According to TOI, Panasonic, a Japanese company, plans to build a battery manufacturing unit in India under the government’s production-linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage.
All Tesla’s EVs are powered by four kinds of batteries: 18650-type, 2170-type, 4680-type, and prismatic-type Tesla batteries.
Panasonic manufactures exclusive batteries such as The Model S and Model X are powered by 18650-type Tesla batteries, whereas the Model 3 and Model Y are powered by 2170-type batteries. Panasonic provides both of these batteries.
Tesla manufactures the 4680-type battery, which is planned for all future Model Ys, CATL supplies the prismatic-type battery, which is also a lithium-iron-phosphate battery and is slated for all Model 3s and Model Ys.
Each Tesla battery is manufactured by a different company. To limit reliance on a single firm, Tesla has never awarded all four battery types to a single company. But Panasonic is the major supplier of Tesla vehicles.
If the Indian government approves Tesla to build a manufacturing facility in India, Panasonic Energy India Company Ltd could produce lithium-ion battery cells which is the group of a subsidiary of Global Panasonic Corporation.
The Indian government is likely to make the final announcement for Tesla’s India business during the January 2024 Vibrant Gujarat Global Summit.
However, Tesla’s plans to build a manufacturing plant in India are not final and could change. Tesla’s CEO, Elon Musk, mentioned in June that Tesla intends to make a “significant investment” in India and he plans to visit in 2024. So far, there has been no official comment regarding the same.
On Thursday’s trade, Panasonic Energy India Co Ltd shares were trading at Rs 367.70 per share, up 0.42 percent from the previous close price of Rs 366.15. The company has a market capitalization of Rs 275 crore.
Panasonic Energy India Company is engaged in the business of manufacturing dry cell batteries and lighting products. The company is a part of Panasonic Corporation.
Panasonic Energy India shares have delivered a return of 59 percent in the last six months and 45 percent in a year.
Panasonic Energy India is a part of Global Panasonic Corporation, the world’s leading manufacturer of audio-visual equipment, home appliances, electronic components, automotive electronics, and environmental systems.
Written by Omkar Chitnis
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