February 04, 2023

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Tamil Nadu Electric Vehicle Policy 2019

Tamil Nadu Electric Vehicle Policy 2019

Tamil Nadu Electric Vehicle Policy 2019

To boost the use of electric vehicles, the Tamil Nadu Chief Minister Edappadi K Palaniswami announced the Electric Vehicle Policy 2019. The policy to attract 50,000 Crore investments and 1.5 lakh new jobs. It offers incentives, investment subsidy and waiver of various taxes and duties. 




In the new policy, all-electric vehicles will be exempted from Motor Vehicles Tax till 2022 and manufacturers will get incentives on investment, land cost and 100% exemptions from state goods and Services Tax (SGST), land registration fees tax and electricity tax.

Tamil Nadu Electric Vehicle Policy 2019

This Policy and a package of incentives concessions shall come into effect from the date of issue of Government Order and will be valid for a period of ten years or till a new Policy are announced.

Why there is a need for EV policy? 

Vehicular population in Tamil Nadu 

According to the policy, There were 1.27 million transport vehicles and 26.4 million non-transport vehicles in the state as of 31.07.2019. Tamil Nadu accounts for 6.4% of electric vehicles sold in India.

The projected total vehicle population for the year 2030 is 9.8 crore vehicles. One-fourth of GHG emissions are created by the transportation sector in the State. Due to this, the immediate action needs to be taken by the use of alternative cost-effective fuels that create less pollution.

Tamil Nadu is the second largest vehicle population in India with 2.77 crore vehicles which leading tremendous air pollution and accidents in the State. To control this a dedicated EVs policy is created.

Opportunities for the policy 

Tamil Nadu is one of the power surplus states with 2 nuclear plants and many thermal and hydro-electrical power stations in the State offering a steady source of electricity required for the EV ecosystem.

The State has also one of the highest installed capacity for renewable energy such as wind energy and solar energy.Which helps in reducing the emissions from the State.

It has many technical institutions which are helpful for the industry in terms of workforce.
There is also a great growing urban population with vehicular growth. This will help the State in developing electric mobility ecosystems.

Scope and Application of EV Policy

The companies, vehicles and charging infrastructures companies must follow and fulfill the demands of the FAME II guidelines issued by the Ministry of Heavy Industry, Government of India to avail the incentives.

Objectives of the policy

As the TN government is aiming to attract 50,000 crores of investment in EV manufacturing to create an ecosystem in the State. It aims to create 1.5 lakh new jobs. 

  • Create robust infrastructure for electric vehicles including adequate power supply and network of charging points with favorable power tariff.
  • Promote innovation in EV for automotive and shared mobility by providing the ecosystem and infrastructure to make Tamil Nadu, the EV Hub of India.
  • Create a pool of skilled workforce for the EV industry through the technical institutions available in the State and create new jobs in the EV industry.
  • Make Tamil Nadu the preferred destination for Electric Vehicles and component manufacturing units including battery and charging infrastructure.
  • Create a conducive environment for Industry and Research Instuons to focus on cutting edge research in EV Technologies and reap the benefit from the outcome.
  •  Recycle and reuse used batteries and dispose of the rejected batteries in an environment-friendly manner to avoid pollution.

Policy Measures

Two-wheelers and cars




Nearly 25 lakh personal cars have been registered in the State and out of the 85% are two-wheelers they can be encouraged for conversion through fiscal concessions and creation of charging networks.

Shared Mobility

Conversions of all Auto Rickshaws in 6 major cities such as Chennai, Coimbatore, Trichy, Madurai, Salem and Tirunelveli to EVs in 10 years of duration.

Public Transport

Around 21,000 public transport buses are operated by Transport Undertakings (STUs) in the State. This will replace around 5% of buses to EV every year and around 1000 EV buses introduce every year. The Private Bus owners shall convert ICE buses into electric buses at their choice.

Educational institutions

32,000 buses, mini buses, and vans run by Educational Instuons such as schools and colleges in the State and will encourage for a transition to EVs.

Goods and Carriers

A small commercial-like mini goods vehicles, e-commerce, and delivery companies to be encouraged for the transition.

Demand Side Incentives till 30.12.2022

Incentives for the purchase of electric two-wheelers

  • 100% road tax exemption till 30.12.2022 and Waiver on Registration chargers/fees as per Govt notification.
  • Incentives for three-seater auto-rickshaw
  • Permit fees waived for e-autos till 30.12.2022
  • Registration charges/fees

Incentives for Transport vehicles such as Taxi, Tourist cars, etc

  • Permit fees waived for e-transport vehicles
  • 100% road exemption
  • A waiver on Registration charges/fees
  • STUS will get a subsidy to purchase E-buses

Incentives for Light Goods Carriers (including Three Wheelers)

  • No permit required for three-wheeler goods, e-carrier and electric light goods carrier
  • 100% road tax exemption for e-carriers
  • a waiver on registration charges/fees

Incentives for Private Cars

  • 50-100% road tax exemption
  • a waiver on registration charges/fees

Incentives and Support for Charging Stations

The Government will take effort to set up 3*3 Grid charging stations in Chennai, Coimbatore, Trichy, Madurai, Salem, and Tirunelveli.




The State will invest in setting up charging stations, with the active participation of public sector units including TANGEDCO and private players

Reimbursement of SGST

100% of the SGST paid on the sale of EVs manufactured, sold and registered for use in the State will be reimbursed to the manufacturing companies.

Electricity Tax Exemption

The EV and charging infrastructure manufacturing industries in the state will be provided a 100% exemption on electricity tax.

Stamp Duty Exemption

100% exemption on stamp duty for transactions to the EV related and charging infrastructure manufacturing industries in the state that obtains land by sale or lease.

For more information click Tamil Nadu Electric Vehicle Policy 2019-min




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Mastered in Journalism and I am a dedicated writer for ElectricVehicles.in since 2018. I am an EV enthusiast. I love to write about electric vehicles, technology, startups, people, fashion, and trends. Through my writings, I love to contribute to my team's efforts to reduce the pollution levels in the world, especially from India.

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