Tamil Nadu Industries Minister TRB Rajaa announced that the state will continue to provide motor vehicle tax exemptions for battery-operated vehicles until December 2027, under the Tamil Nadu Motor Vehicles Taxation Act, 1974. Sharing the government notification, Rajaa said the decision, made by Chief Minister M K Stalin, highlights the government’s commitment to promoting EV adoption, affordability, and large-scale manufacturing.

“This demonstrates how pro-industry our government is. Tamil Nadu has extended a 100% motor vehicle tax exemption for all electric vehicles until December 31, 2027, reflecting our strong focus on sustainability,” in a social media post on Tuesday. Rajaa noted that EV adoption in the state reached 7.8% in 2025, but emphasized that challenges remain, particularly in expanding charging infrastructure and making the supply chain greener.

He explained, “This policy lowers costs for consumers while providing manufacturers with long-term certainty. Even as global markets face volatility and pressures on clean mobility investments, Tamil Nadu maintains a clear and stable policy direction.” The notification stated that, under the powers granted by sub-clause (b) of clause (1) of section 20 of the Tamil Nadu Motor Vehicles Taxation Act, 1974, the Governor exempts all battery-operated vehicles—both transport and non-transport—from motor vehicle tax from January 1, 2026, to December 31, 2027.