Tamil Nadu Extends 100% Road Tax Exemption for Electric Vehicles Till 2027

In a move aimed at sustaining momentum in electric vehicle adoption, the Tamil Nadu government has decided to continue the full road tax exemption for battery-operated vehicles beyond the current timeline. 

Policy Extension and Government Order 

As per a Government Order issued on December 29, the state has extended the 100% tax exemption for all battery-operated vehicles covering both transport and non-transport categories for an additional 2 years, from January 1, 2026, to December 31, 2027. 

The decision follows sustained representations from electric vehicle manufacturers and industry stakeholders, who have been urging the government to maintain fiscal incentives as adoption levels rise. 

“Certain vehicle manufacturers have represented to the State Government stating that EV adoption is gaining momentum, reaching approximately 7.8% in 2025, representing a significant improvement in Tamil Nadu. They requested extension of the road tax exemption further for all categories of electric vehicles,” the Government Order said. 

Role Of Transport Department and Policy Alignment 

The order noted that the Transport Commissioner had also sought an extension of the tax waiver, citing alignment with the Tamil Nadu Electric Vehicle Policy, 2023.  

Accordingly, the commissioner has been directed to submit a detailed assessment on the potential implications of levying taxes on electric vehicles in the future, while also examining practices followed by other Indian states. 

The exemption policy builds on measures introduced under the Tamil Nadu Electric Vehicle Policy, 2019. Initially granted until 2022, the road tax waiver was later extended for three years, and the latest decision ensures continuity of incentives through the end of 2027. 

Read More: Top 5 Performing EV Stocks in India Returns up to 120% in 2025: Lumax, Gabriel and Others on YTD Basis! 

Conclusion 

By extending the road tax exemption until 2027, Tamil Nadu has reinforced its position as one of India’s most EV-friendly states. While the move supports affordability and demand, industry experts underline that long-term growth will also depend on building a robust local supply chain alongside consumer incentives. 

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