Tamil Nadu’s Electric Vehicle Policy Comes To An End; EVs To Cost 15% More

white car charging
Photo by Rathaphon Nanthapreecha on Pexels.com

Tamil Nadu, home to major electric vehicle manufacturers saw an end to its state Electric Vehicle Policy on December 30, 2022. The two-year period for the state EV policy, which was implemented on November 2, 2020, was set.

This policy allowed for 100% exemption from road taxes and registration of electric two-wheelers. The subsidy exemption for electric cars was 50-100%. It also included provisions for charging infrastructure for electric vehicles.

With the end of the state policy, it is expected that the price of an electric bike will rise by at least 15%.

The number of vehicles that were able to benefit from the state policy is not available. This ambitious policy was implemented during the Covid-19 pandemic. It also caused disruption to the supply chain ecosystem.

While FAME II and State subsidies were ambitious, the past two years saw price rises and challenges in key raw materials supplies such as electronics, semiconductors, and Cathode.

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However, most State EV policies have a two-year tenure. Tamil Nadu will be the first state to see the policy end.


  1. The whole hearted implementation of the policy is not evident. For Eg EAutos a non starter, many clearances not accorded. Red tape and no will to implement. Even central schemes not being rolled out. Clear half hearted approach.
    May be we could see a revised renewed policy spelling out better aspects can be expected. Hopefully resting

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