Tamil Nadu: No road tax on EVs till 2027
What's the story
In a major boost for electric vehicle (EV) adoption, the Tamil Nadu government has extended the 100% road tax exemption on all battery-operated vehicles. The exemption will now be applicable till December 31, 2027. This move comes as a response to strong requests from EV manufacturers and industry stakeholders across the state.
Adoption rate
EV adoption in Tamil Nadu reaches 7.8% in 2025
The government order noted that certain vehicle manufacturers had informed the state about the rising popularity of EVs, which have reached an impressive 7.8% adoption rate in 2025. The request for extending the road tax exemption was made for all categories of electric vehicles.
Impact
Tax exemptions have boosted EV adoption
Tax exemptions and other incentives have played a major role in boosting EV adoption in Tamil Nadu. The state first introduced road tax exemption under its Tamil Nadu Electric Vehicle Policy 2019, valid until 2022. It was later extended by three years to further encourage the growth of the state's ecosystem for EVs.
Affordability boost
Road tax exemption makes EVs more affordable
Karthikeyan Palanisamy, Managing Director and Co-Founder of Zeon Electric, welcomed the decision, saying it makes EVs cheaper for people across Tamil Nadu. He emphasized that this move is a strong indication of the state's commitment to clean and sustainable mobility. Meanwhile, Thiru Srinivasan from FaMe TN stressed on focusing on supply-side initiatives to ensure local availability of critical components and materials needed for EV production.