EV Tax Incentive to Continue Under State Motor Vehicles Law
Tamil Nadu Industries Minister TRB Rajaa has said that the state will continue providing a full exemption from motor vehicle tax for battery operated vehicles until December 31, 2027. The extension will be implemented under the Tamil Nadu Motor Vehicles Taxation Act, 1974.The minister shared the official government notification confirming that the exemption applies to all battery operated vehicles, covering both transport and non transport categories.
Decision Reinforces State Support for EV Adoption
According to Rajaa, the decision taken by Chief Minister M K Stalin strengthens the state government’s commitment to electric vehicle adoption, affordability, and large scale manufacturing.He said the continuation of the exemption reflects the state’s pro industry approach and its focus on sustainability. In a social media post, Rajaa noted that Tamil Nadu has extended a 100 percent motor vehicle tax exemption for all electric vehicles till December 31, 2027.
EV Adoption at 7.8 Percent in 2025
Rajaa stated that the adoption of battery operated vehicles in Tamil Nadu reached 7.8 percent in 2025. He added that there is still considerable progress to be made, particularly in expanding charging infrastructure and ensuring that the overall supply chain becomes greener.Policy Aims to Reduce Consumer Cost and Offer Stability
The minister said the policy helps lower costs for consumers while providing long term certainty for manufacturers. He also noted that even as global markets face volatility and pressure on clean mobility investments, Tamil Nadu has maintained a clear and stable policy direction.Notification Details
As per the notification shared by the minister, the exemption has been issued under sub clause (b) of clause (1) of section 20 of the Tamil Nadu Motor Vehicles Taxation Act, 1974. The exemption will be effective from January 1, 2026, and will remain in force until December 31, 2027, covering all battery operated vehicles without distinction between transport and non transport categories.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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