The EV buyers of ‘Ya’ state are on fire! 100 percent discount will be available from road tax, registration will also cost no money

• Relief for EV buyers in Tamil Nadu
• 100% road tax exemption on electric two-wheelers and four-wheelers

Electric vehicles (EV) Government of Tamil Nadu has taken an important decision towards promotion. The state government has announced a decision to extend the 100% road tax exemption on electric two-wheelers and four-wheelers till December 31, 2027. The announcement was made through a government order issued recently. The decision is intended to provide relief to EV buyers as well as support vehicle manufacturers for long-term planning. Although the adoption of electric vehicles in the state is slowly increasing, the decision is considered important in light of the uneven pace across segments and regions.

EV Road Tax Exemption starts from 2019

Road tax waiver on EVs in Tamil Nadu was introduced under the Tamil Nadu Electric Vehicle Policy 2019. Initially this concession was applicable till 31 December 2022. It was then extended till the end of 2025. With the 2025 deadline approaching, industry associations and automakers had demanded the government extend the concession further. Acknowledging this demand, the government has extended the road tax exemption for another two years.

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What benefits will EV buyers get?

Road tax is a major part of the total cost of any vehicle. This tax waiver on electric vehicles reduces the initial cost of the vehicle. This will directly benefit the buyers of electric scooters and compact cars in particular. Hence, it will be easier for common consumers to adopt EVs, and this decision will be important for consumers who were confused about buying EVs till now.

Why is this decision important?

This decision will benefit not only consumers, but also vehicle manufacturers and suppliers. Investments such as EV manufacturing plants, charging infrastructure and supply chains are often based on several years of planning. Short-term discounting increases investment risk. But now with long-term strategic clarity, new investments will be stimulated, planning will be facilitated and local manufacturing and supplier ecosystems will be supported.

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Current status of EV adoption in Tamil Nadu

According to industry estimates, the EV adoption rate in Tamil Nadu has reached around 7.8% in 2025. But this growth is not equal in all segments. Electric scooters and delivery fleets are witnessing rapid growth, while the passenger car segment is relatively slow. Charging infrastructure outside major cities is still uneven. Issues such as grid upgrades and battery supply chains remain. Although the road tax exemption does not completely eliminate all these problems, it will certainly help in not slowing down the pace of EV adoption.