Indian auto parts supplier shares rose the upto 14% on Monday following reports that electric vehicle maker Tesla Inco (TSLA.O) is in talks with a minimum of three companies to ensure some parts for their entry into the country. Tesla, which is attempting to arrange a production line in India on the off chance that it prevails with regards to bringing in vehicles, is now in chats with a few organizations to give parts like instrument boards, windshields, differential pinion wheels, brakes, power seats and the Economic Times. Announced Sunday. Bharat Forge Limited (BFRG.NS), Zona BLW Precision Forgings Limited (SONB.NS) and Sander Technologies Limited (SNTL.NS) are some of the Indian companies already supplying components to Tesla. Shares of three Indian companies rose 6.2% to 13.7% on Monday.
The country is the fifth largest car market in the world with an annual sales of 3 million vehicles, and according to industry figures, electric vehicles (EVs) make up a fraction of the total.
However, sales in the country are steadily increasing as states improve the charging infrastructure. Elon Musk, CEO of Tesla, one of the world’s most valuable automakers, has repeatedly tweeted about the company’s arrival in India through market capitalization.
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