EV Policy - Tamilnadu


The state aims to leverage its already existing strong foundation of automotive supply chain and provide a strong ecosystem to upcoming EV manufacturers. While aiming to be a preferred location for manufacturers the state is also aiming at accelerating adoption of EVs and developing EV cities for pilot VE projects.

Demand Incentives

  • Road Tax : 100% exemption on road tax till 31.12.2025.
  • Vehicle Registration: Exemption on registration fees.
  • Subsidy on Purchase of 4 Wheeler: Commercial Category Rs. 10000/kWh.

Charging station subsidy

  1. Identification of sites for public slow and fast charging stations in Government offices and public places, Smart City Missions/Corporations of the EV Cities.
  2. Identify and prioritise the establishment of charging stations on National and State Highways at 25 km intervals on both sides.
  3. Undertake measures to simplify requirements for establishment of public charging stations in the State.

Manufacturing subsidy and Tariff

  1. Inclusion of R&D in Eligible fixed asset so that companies can avail incentives under the policy.
  2. Either 100% reimbursement on gross SGST for EVs manufactured, sold and registered in state or a subsidy of 2% of the project turnover or a capital subsidy of upto 15% or in the case of manufacturing of ACC state will provide capital subsidy at 20%.

Battery recycling subsidy

The first 200 public battery swapping stations set up in Tamil Nadu shall be eligible for a capital subsidy of 25% on the cost involved in the purchase of equipment and machinery limited to Rs. 2 lakh per station.

Electricity Tariff

  1. Incentive on public charging stations - reduction of existing demand charges by 75% for the first two years and reduction of energy charges by 50% between 8AM to 4PM to incentivise charging during off peak hours.
  2. 25% of subsidy in the cost involded for firms establishing public charging station.
  3. First 500 charging station in TN to get capital subsidy at 25%.
  4. The supply of electricity to Public/Private Charging Stations & Public Battery Swapping Stations for LT supply shall be classified as LT Tariff - VII and for HT supply shall be classified as HT Tariff - V.

Skill development

  1. Higher Education - The Higher Education Department has initiated efforts to redesign the curriculum Industry – Academia Linkage - The Government of Tamil Nadu has set up WorkLabs, a cell within 16 Engineering as well as Polytechnic colleges in Electrical, Electronics, Mechanical, and Automobile courses to suit the EV industry requirements, including setting up of Centres of Excellence.
  2. Skilling - TNSDC (Tamil Nadu Skill Development Corporation), on the lines of the National Skill Development Corporation (NSDC), is a not-for-profit company under the Companies Act, 2013 that was established in 2013 to provide skill training to the required industries.
  3. Industry – Academia Linkage - The Government of Tamil Nadu has set up WorkLabs, a cell within Guidace, to promote, facilitate and expand partnerships between industries and academic institutions. WorkLabs shall endeavour to equip graduates with industry-ready skill sets.
Download Policy
Date of release - 2023
Applicable Till - 2028