Did Tesla Really Scrap Plans for Indian EV Plant? Here’s a Fact Check of Viral Claim
Viral reports claiming that Tesla has officially scrapped plans to build an EV manufacturing plant in India have been dismissed by government sources as misleading. Officials from India’s Ministry of Heavy Industries said no recent statement was made confirming Tesla’s exit, adding that older comments by Union Minister HD Kumaraswamy were being circulated out of context.
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Widely circulated reports claiming that Tesla had officially abandoned plans to establish an electric vehicle manufacturing facility in India triggered significant online discussion on May 19. Several international websites and social media posts suggested that the Indian government had confirmed Tesla’s withdrawal from the proposed project.
However, sources within India’s Ministry of Heavy Industries have since dismissed the claims as inaccurate, stating that no recent announcement was made by the government regarding Tesla scrapping its India manufacturing plans. Has Elon Musk Launched Tesla Phone With Free Starlink? Is Tesla Pi Phone Real? Here’s the Truth Behind Fake Viral Claims.
No, Tesla Has Not Scrap Plans for Indian EV Plant
Tesla Has Not Officially Dropped India EV Manufacturing Plans
According to reports, several international platforms, including Electric-Vehicles.com and Futunn.com, cited “Indian local media reports” while claiming that Tesla had “formally” or “officially” decided against setting up a manufacturing plant in India.
Many of the reports also incorrectly stated that the confirmation came directly from HD Kumaraswamy. A widely shared post by Teslarati on X further added to the confusion by incorrectly identifying KN Balagopal as India’s Minister of Heavy Industries while discussing Tesla’s India plans. Is the EPS-95 Viral Letter Real? Did EPFO Raise EPS-95 Pension to INR 7,500? Fact Check Reveals Truth.
Ministry Sources Deny Recent Statement
Government sources later clarified to Financial Express that Kumaraswamy had not made any recent statement suggesting Tesla was abandoning India.
Officials reportedly said that some foreign media outlets were recycling remarks made by the minister last year and presenting them as fresh developments. The clarification came amid renewed speculation over Tesla’s long-delayed plans to enter India’s EV manufacturing sector.
What Kumaraswamy Actually Said
The remarks attributed to Kumaraswamy were originally made in 2025 during discussions around global trade tensions and import tariffs under the administration of Donald Trump.
“Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest [in manufacturing electric cars in India]. Tesla, we are not actually expecting [interest] from them. They have only [shown interest] to start two showrooms,” Kumaraswamy had said at the time. Since then, Tesla has reportedly expanded its retail presence in India with stores in Gurugram, New Delhi, Mumbai and Bengaluru.
India’s EV Policy and Tesla’s Position
The Indian government has been encouraging global automakers to manufacture electric vehicles locally by offering reduced import duties for companies willing to invest in domestic production facilities.
Under the revised policy framework, companies investing approximately $500 million in India’s EV manufacturing ecosystem can import a limited number of electric vehicles at a reduced customs duty of 15 per cent, down from the earlier 70 per cent.
Elon Musk has repeatedly expressed concerns over India’s high import tariffs on foreign-made vehicles. Musk was also expected to visit India in 2024 and reportedly announce a multi-billion-dollar investment proposal for a manufacturing plant. However, the visit was postponed, with Musk citing “very heavy Tesla obligations.”
Tesla’s India Manufacturing Plans Still Unclear
Tesla’s plans for local manufacturing in India have remained uncertain for several years.
In 2022, the Indian government insisted that Tesla manufacture vehicles locally if it wanted to operate extensively in the market. Tesla, meanwhile, had argued that it wanted to first test demand by exporting vehicles to India before committing to large-scale local production. The company has not made any fresh public announcement confirming either the cancellation or continuation of its India factory plans.
Fact check
Tesla has officially scrapped plans to build an EV manufacturing plant in India.
The claim is fake.
(The above story first appeared on LatestLY on May 20, 2026 06:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
