Under this new electric vehicle policy, the Tamil Nadu government intends to exempt all EVs from 100% road tax and create EV parks for a comprehensive EV ecosystem.
India has been giving a great push to electric mobility off late. There are various tax reductions, GST cuts, subsidies and the likes that the government is offering to any buyer of any electric vehicle. India aims that by 2030, all vehicles plying on our roads should be fully electric. Amidst this, Tamil Nadu has come up with an electric vehicle policy that intends to create a proper electric vehicle ecosystem in the state.
As per this new policy, the state government intends to invest up to Rs. 50,000 crores on electric mobility and create 1.5 lakh jobs. This new policy has laid down some strategies which will help benefit electric mobility and also create an entire ecosystem for the same. For starters, the policy intends to exempt all electric vehicles – be it two-wheeler or three-wheelers as well as cars, buses and commercial vehicles – from road tax till the end of 2022.
Now that’s a massive saving when it comes to the on-road price of a vehicle as the 100% road tax exemption will lead to waivers on registration fees under the central government’s policy. Apart from road tax exemption, this Tamil Nadu state policy also intends to advance support measures to EV makers, parts and charging infrastructure equipment makers.
Some of these measures include capital subsidy, tax exemption, and land subsidy. Tamil Nadu also plans to create an EV park in major auto-manufacturing hubs as well as in areas with potential EV investments. What exactly are these EV parks? Well, these parks are expected to feature plug-and-play facilities. The government thinks that these parks will create a vendor ecosystem that should help the OEMs.
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Ather Energy, a Bangalore based electric scooter manufacturer, recently started operations in Tamil Nadu and commented, “Tamil Nadu’s EV policy has taken into account the entire EV ecosystem and is extremely comprehensive. Removing the Road tax for end consumers will have a positive impact on the adoption rate of EVs in the state. And refunding the SGST along with the plethora of other OEM focused incentives make the state an attractive hub for manufacturing.“
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Electric mobility is still in its infancy in India. There are however quite a few mass production EVs already on sale in India which include the Hyundai Kona, Tata Tigor EV, Mahindra e-Verito and the Audi e-Tron as well. The MG eZS and the Porsche Taycan will also hit our shores soon. In such a time, Tamil Nadu’s electric vehicle policy seems like a step in the right direction and well ahead of time. Sooner or later, the entire country will have to adapt to the change, so having the ecosystem in place is most essential.
