Tamil Nadu extends 100 pc EV road-tax exemption till 2027 end

If you are in Tamil Nadu and thinking of buying an electric vehicle (EV), this could be the best time to go for it. The state government has extended the 100 per cent road-tax exemption for EVs for another two years, offering continued relief to the buyers, manufacturers and the industry as a whole.

As per a government order issued on December 29, the exemption will now be valid from January 1, 2026, until December 31, 2027, giving buyers a longer window to benefit from lower upfront costs.

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The extension applies to all battery-powered vehicles, covering both transport and non-transport categories, including electric two-wheelers, autos, and private electric cars.

Who benefits

Road tax is a one-time fee paid during vehicle registration at the regional transport office. With a 100 per cent exemption, buyers of EVs in Tamil Nadu will not have to pay this tax at all.

This effectively reduces the overall purchase cost of an EV, making electric mobility more affordable compared to conventional petrol or diesel-run vehicles.

By removing a significant upfront expense, the exemption directly supports first-time EV buyers and cost-conscious consumers.

Why extended

According to the government order, EV adoption in Tamil Nadu reached about “EV adoption ~ 7.8% in 2025,” indicating steady growth in the sector.

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Industry players had also requested the continuation of the exemption, arguing that incentives are crucial to maintaining and accelerating adoption rates.

The move aligns with the state’s broader electric mobility strategy aimed at encouraging cleaner transport options.

Policy outlook

Tamil Nadu first introduced road-tax exemptions for EVs under its electric vehicle policy in 2019. The initial benefit was valid till 2022 and was later extended until December 31, 2025.

With the latest order, the exemption now runs through the end of 2027, reinforcing policy continuity for manufacturers and buyers alike.

However, the government has also asked the transport commissioner to study the potential impact of charging road tax on EVs and review policies followed by other states, indicating the exemption could be reassessed in the future.

Industry impact

According to media reports, industry experts believe that road-tax exemptions, along with other incentives, have played a key role in boosting EV adoption in Tamil Nadu.

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By reducing a major upfront cost, the policy makes EVs accessible to a wider audience, which in turn increases demand for manufacturers and service providers.

This continued support strengthens Tamil Nadu’s position as a growing hub for electric mobility and related industries.

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