In good news for EV owners, the Tamil Nadu government extended 100% motor vehicle tax exemption for all EVs till December 31, 2027. Tamil Nadu Industries Minister TRB Rajaa confirmed the development in a social media post.

The exemption is applicable to transport and non-transport vehicles, including two-wheelers, private cars and three-seater auto-rickshaws registered in the state between January 1, 2023 and December 31, 2025.

The minister said the decision reinforces the Stalin government’s commitment to support the adoption, affordability and manufacturing of electric vehicles at scale. He also mentioned that the adoption of electric vehicles in the State has reached 7.8% by 2025, adding that there is still a long way to go in terms of recharging infrastructure.

“In exercise of the powers conferred by sub-clause (b) of clause (1) of section 20 of the Tamil Nadu Motor Vehicle Tax Act, 1974 (Tamil Nadu Act 13 of 1974), the Governor of Tamil Nadu exempts all battery-operated vehicles, whether transparent or non-transparent, from the payment of that Act (electric vehicles and electric vehicles) in a subsequent period. on January 1, 2026 and ends on December 31, 2027,” said the notification shared by TRB Rajaa.

The minister wrote in his post, “This policy reduces costs for consumers while providing manufacturers with long-term certainty. Even as global markets face volatility and pressure on clean mobility investments, Tamil Nadu keeps its signal clear and stable!”

In addition to this, the Tamil Nadu Electric Vehicle Policy, 2019 was revised in 2023 to include an exemption from registration fees under Government of India notifications and grants and tax exemptions for companies manufacturing electric vehicles, batteries and charging infrastructure.

The announcement comes months ahead of the upcoming assembly elections in Tamil Nadu. Assembly elections in Tamil Nadu are expected to be held between April and May 2026 with 234 seats.