The company is seeking critical electrical, electronic and mechanical components, the report said, citing people familiar with the matter.
The parts include instrument panels, windshields, differential brakes, gears and power seats, the paper said.
Sona Comstar Ltd, Sandhar Technologies Ltd and Bharat Forge Ltd are among Indian companies already supplying components to Tesla, the Economic Times said. Tesla didn’t respond to queries by the paper on the talks.
A Tesla factory to produce cars in India is “quite likely” if the electric automaker can first begin sales with imported vehicles, chief executive officer Elon Musk said in July.
Tesla is currently lobbying for lower taxes on imports as it considers plans to expand into India, one of the world’s biggest emerging car markets, Bloomberg News had earlier reported, citing people with knowledge of the matter.