Tamil Nadu grants 100% vehicle tax waiver to EVs.

Tamil Nadu Government has notified that is will grant 100 percent motor vehicle tax exemption for battery-operated vehicles or the Electric Vehicles (EVs).


  • The State Government’s order came after careful examination.
  • State will grant 100 percent tax exemption on all the transport and non-transport vehicles.
  • It further included the incentives such as 100 percent GST reimbursement and 50 per cent capital subsidy in order to attract investments.
  • This step was taken by the government in order to boost the EV system in Tamil Nadu.
  • Apart from that, Tamil Nadu has also planned to set up the country’s first park exclusively for the electric vehicle production eco-system.
  • The state has targeted to invest about Rs 50,000 crore in the EV segment.

Significance of the move

With this move, the state government seeks to attract Rs 50,000 crore investment. It will further create 150,000 jobs in the state.


The Tamil Nadu government had announced a comprehensive EV policy in 2019. Under it, the government planned to give incentives and subsidies for both supply side and demand side in order to promote the use of Evs. The policy covers the EV ecosystem along with incentives to EV charging stations developers. It also tap the components including battery and cell manufacturing, electric motors, EV powertrains and battery management.

Automobile environment of the State

The state of Tamil Nadu accounts for 35 percent of the country’s auto component production. It accounts for around 30 percent of four-wheeler manufacturing. Further, the state is home for 20 OEMs that covers all auto segments.  The state has a total installed production capacity to produce 1.71 million passenger vehicles and 4.82 million two-wheelers yearly.