Tamil Nadu waives off all taxes on electric scooters, electric cars & pure EVs

Tamil Nadu has just made purchasing electric scooters, electric bikes, electric cars and other EVs significantly cheaper. The state has waived off all the taxes on battery electric vehicles, as per an announcement made on 2 November 2020.

Prior to the announcement this month, Tamil Nadu was offering an incentive for purchasing EVs. The state was charging only 50% tax on EVs compared to the tax on internal combustion engine vehicles. Now, EV buyers need not pay any tax on them to the state. Tamil Nadu has fully exempted battery electric vehicles from taxes until 31 December 2022. This exemption applies to both private (non-transport) and commercial (transport) electric vehicles.

EV companies have already started studying the latest amendment in the Tamil Nadu Electric Vehicles Policy, 2019. Ather Energy, for instance, took it to Twitter to say the same:

Tamil Nadu government is trying to appeal to not only EV customers but also EV manufacturers. The southern state plans to create a special electric vehicle manufacturing zone where it would offer incentives like a capital subsidy, GST reimbursement and more. It aims to get investments worth INR 50,000 crore and create one and a half lakh jobs with the EV ecosystem it has in mind.

Ather Energy, Mahle Group, and several other well-known companies dealing in EVs or their components have announced manufacturing in Tamil Nadu. The biggest announcement could come from Hyundai Motor Company in a year or two when it starts executing the smart EV project for its India-specific, low-cost EVs. The first Hyundai electric car that is made for India is now expected in the second half of 2022.