Tamil Nadu: 100% Motor Vehicle Tax Exemption to EVs.

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3 November 2020.


Government  of Tamilnadu has notified that it will grant 100 per cent  exemption of vehicle tax for battery-operated vehicles (Electric Vehicles).


  • The State Government has exempted taxes to both transport and non-transport vehicles.
  • The State Government is already providing incentives to attract investments.
  • The Tamil Nadu Government provides 100% GST reimbursement and 50% capital subsidy to the EV manufacturing units.
  • The plan is to set up an EV park through these incentives. The park is to be set up in 300 acres of land.

Electric Vehicle Park

  • The Electric Vehicle Park is expected to create 150,000 jobs in the state.
  • The State Government recently signed Memorandum of Understandings worth Rs 30,664 crores.
  •  Of this, Rs 3,500 crores are from auto sector.
  •  The plan is to set up the park through the MoUs signed.
  • The park will be first of its kind in India.

Tamil Nadu

  • The state currently produces 4.82 million two-wheelers and 1.71 million passenger vehicles.
  •  It accounts to 35% of auto component production of the country.

About other States

  • Several states of India are now focusing on Electric Vehicles.
  • The Delhi Government, in August 2020, released the Electric Vehicle Policy, 2020.
  • The EV policy of Delhi Government also focuses on giving incentives and subsidies to Electric Vehicles.
  • The State Government of Karnataka approved the Electric Vehicle and Energy Storage Policy, 2017.
  • The State Government of Maharashtra proposed to exempt EVs from road taxes.
  • Also, it has proposed to provide maximum subsidy of Rs 1 million per charging station to the first 250 charging stations being set up in the state.
  •  And, the Maharashtra State Government had agreed to provide 15% subsidy to the first one lakh registered EVs.

Government of India measures:

  • The GoI launched National Electric Mobility Mission Plan, 2020 to improve fuel security through promotion of electric and hybrid vehicles in the country.
  •  Also, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) was launched.
  •  FAME provides incentives to purchases of electric vehicles. Currently Phase II of FAME is under implementation.

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