The Tamil Nadu government on Tuesday extended its 100% motor vehicle tax exemption for all battery-operated electric vehicles (EVs) until Dec. 31, 2027. This two-year extension, effective from Jan 1, 2026, covers both transport and non-transport EVs, as outlined in a recent government notification under the Tamil Nadu Motor Vehicles Taxation Act, 1974.
The decision was announced by Industries Minister T.R.B. Rajaa on the social media platform X (formerly Twitter). He wrote, "TamilNadu has extended 100% motor vehicle tax exemption for all electric vehicles till 31 December 2027 aligning with our deep rooted sustainability focus ! This decision by Honourable CM, Tamil Nadu Thiru M.K Stalin avargal reinforces our commitment to support EV adoption, affordability and manufacturing at scale." [sic]
Rajaa informed that the policy reinforces Tamil Nadu's commitment to EV adoption, affordability, and large-scale manufacturing, noting that EV penetration in the state has reached 7.8% in 2025, with room for growth through improved charging infrastructure and greener supply chains.
"Even as global markets face volatility and pressure on clean mobility investments, Tamil Nadu keeps its signal clear and stable," he concluded the post.
Initially introduced in the 2019 EV Policy and extended to 2025 in the 2023 update, the waiver has driven a surge in registrations from about 3,500 in 2019 to over 1.4 lakh in the first 10 months of 2025, reports Hindu Business Line.
Earlier this month, Vietnamese electric vehicle maker VinFast said it will expand its Tamil Nadu-based manufacturing plant to roll out electric buses and scooters, entailing an investment of $500 million.
The company has inked a Memorandum of Understanding with the Tamil Nadu government for an additional land parcel of 200 hectares adjacent to its existing facility in the SIPCOT Industrial Park in Thoothukudi, Tamil Nadu.
RECOMMENDED FOR YOU
POPULAR