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Home / Blog / What Are the Subsidies and Incentives Under Tamil Nadu EV Policy?

What Are the Subsidies and Incentives Under Tamil Nadu EV Policy?

26 September 2025•Revolt Team
What Are the Subsidies and Incentives Under Tamil Nadu EV Policy?

Tamil Nadu EV policy (2023 revision) is a roadmap of the state in terms of the rapid acceptance, production, and infrastructure of electric vehicles, revised from its 2019 edition.

According to this Tamil Nadu EV policy, supply-side and demand-side players receive incentives and subsidies as well as clear targets, which makes Tamil Nadu an attractive EV-manufacturing and EV-usage location.

For context: Tamil Nadu was one of the first states to release a specific Tamil Nadu electric vehicle policy, to invest up to 50,000 crore and employ 1.5 lakh people through it as a part of its 2019 strategy. The revised policy fills earlier gaps, especially in giving upfront capital support and in demand incentives for commercial vehicles.

Key Subsidies Under Tamil Nadu EV Policy

Incentives for Manufacturers & Industry Players

Capital Subsidy & Electricity Tax Exemption

Manufacturers setting up EV/battery/component production get 15% capital subsidy on eligible investment till end-2025; electricity tax exemption (100%) also till 31 December 2025.

SGST Reimbursement and Stamp Duty Exemptions

Full SGST reimbursement on EVs manufactured, sold & registered in the state (up to the eligible investment) till 2030. Stamp duty exemption for certain transactions until 2022 in some versions of the policy.

Land Subsidy and Employment Incentive

Land cost subsidy (15% or even 50% in southern districts) when land is allotted from government agencies, and a fixed EPF/employee-based incentive (e.g., ~INR 48,000 per employee for one year) for jobs generated by EV investment entities.

EV Parks & MSME Support

Exclusive EV parks with common facilities; additional capital subsidy for MSME manufacturers (e-vehicle component or charging infrastructure).

Demand-Side Incentives: For Users and Fleets

What’s Offered to Buyers & Shared Mobility

Commercial vehicle incentives: Tamil Nadu EV policy subsidies include retrofitting existing ICE commercial 2- and 3-wheelers, helping fleets convert with cost reductions of ~20-25%.

Tariff Reductions for Charging Stations: Energy tariffs for public chargers are reduced by 75% for the first two years, then by 50% for the next two years, lowering operating costs significantly.

Registration & Tax Waivers: Earlier, there were road tax exemptions and registration fee waivers, especially under the 2019 scheme. These help reduce purchase/ownership cost.

Who Gets This Help & How Much

Category
Who Is Eligible
What They Get
Commercial Fleets (2- & 3-wheelers)
Existing ICE vehicles or new EV fleet operators in major cities
Retrofitting support, upfront incentives, and lower tariffs
Charging Infrastructure Operators
Private/public operators setting up public charging/swapping stations
Subsidies on setup cost, lower electricity tariffs, and special benefits for first applicants

Implementation & Institutional Structure

There’s more than just “what is promised;” how the Tamil Nadu EV policy gets implemented matters:

EV Cell & Steering Committee: A dedicated state-level EV Cell under GUIDANCE (Tamil Nadu’s facilitate-invest nodal agency), plus a Steering Committee including government, OEMs, CPOs, and financial institutions.

Designated EV Cities: Six cities (Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, Tirunelveli) are designated as “EV Cities”. Municipal corporations are nodal for implementing charging infrastructure, etc.

Demand vs Supply Balance: The policy explicitly focuses on the supply-side (manufacturing, components, battery) and the demand-side (commercial vehicles, charging infrastructure) to avoid lopsided development. The earlier policy lacked capital subsidies for consumers; the revised version fixes that.

Challenges & How To Fully Utilise Subsidies

What Could Be Hard

Low uptake among private vehicle owners: Many subsidies and incentives are aimed at commercial fleets; private buyers still get fewer direct subsidies under the Tamil Nadu EV policy incentives.

Cap limits and geography: Some incentives, like the land cost subsidy, etc., are higher in southern districts. Some benefits expire by set dates (2022, 2025).

Charging infrastructure bottlenecks: Even with incentives, setting up public charging requires land, power supply, and approvals, all of which can be slow.

Tips to Maximise the Benefits

If you're an EV manufacturer (or thinking about models like RV BLAZE X), plan investment timelines so as to claim benefits before expiry (2025, etc.).

Fleet operators: consider retrofitting earlier rather than later to get full retrofitting incentives.

For charging stations: apply early if you're among the first applicants to get special incentives, and locate in EV Cities to work with the nodal agency.

What’s New & The Road Ahead

The revised Tamil Nadu EV Policy is more generous, more structured, and more forward-looking than the 2019 version. It brings:

Higher supply-side subsidies that support large investments in EV manufacturing and component/battery supply, benefiting players like Revolt Motors.

Stronger demand-side incentives for everyday users and commercial fleets make adopting electric bikes a more practical and affordable choice.

Clear institutional mechanisms to ensure smoother implementation of subsidies and infrastructure rollout.

For example, with electric bike such as the Revolt Motor’s RV BLAZE X, lower registration fees, reduced road taxes, and charging tariff support can directly cut down ownership costs for riders.

If executed well, this policy not only strengthens Tamil Nadu’s position as a leader in EV adoption but also creates a favourable environment for Revolt Motors and its customers to accelerate the shift to electric mobility.

Conclusion

To sum up, the Tamil Nadu EV policy provides a rich suite of subsidies and incentives under the policy Policy for both supply-side (manufacturing, land, tax exemptions) and demand-side (commercial fleets, retrofitting, charging infrastructure).

While some aspects favour fleets and larger investments, there is real scope for private EV users and innovators to benefit. If implementation is consistent, the policy can meaningfully accelerate EV adoption in Tamil Nadu, reduce emissions, and foster green jobs.

Book your Revolt test ride today and experience firsthand how electric motorcycles deliver power, performance, and lower running costs.

Also Read

What is the FAME II Scheme?

Government Subsidy for Electric Bikes in India

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