Overview
- The state issued a Government Order on Dec. 29 extending the exemption from Jan. 1, 2026 to Dec. 31, 2027 under the Tamil Nadu Motor Vehicles Taxation Act.
- The waiver applies to all battery-operated vehicles across both transport and non-transport categories.
- Industries Minister T.R.B. Rajaa announced the decision on X, framing it as support for EV adoption, affordability and manufacturing, and noting reported 2025 EV penetration of about 7.8%.
- The Transport Commissioner has been directed to deliver a detailed assessment of the fiscal and market impact of imposing EV taxes, including comparisons with other states.
- Officials and industry attribute rapid uptake to the policy, with registrations rising from roughly 3,500 in 2019 to over 140,000 in the first ten months of 2025, as investor interest includes VinFast’s $500 million expansion and a 200-hectare MoU in Thoothukudi.