Electric Vehicle Subsidy in Tamil Nadu 2024

Adopting an electric vehicle is not only cost-effective but also aids in making an eco-friendly environment for us by reducing carbon emissions. Electric vehicles refer to all battery electric vehicles (BEV), plug-in electric vehicles (PEV), plug-in hybrid electric vehicles (PHEV), and strong hybrid electric vehicles (SHEV). Updated in 2023 by the TN government, the Electric Vehicle subsidy policy aims to increase the market share of EVs by 30% in the city by 2030.

To encourage the electric vehicle sector, the Tamil Nadu government has announced its updated EV subsidy policy. The new policies carry forward the earlier available benefits such as permit fee waivers, exemption from paying state toll taxes, registration charges, and road taxes. However, the subsidy benefits would only apply to electric vehicles manufactured, sold, and registered in Tamil Nadu.

The introduction of subsidy policy aims to increase the demand for EVs in the state. It will also cut the overall cost of electric vehicles.

Let us have a detailed look at Tamil Nadu’s electric vehicle subsidy policy and how to apply.

Latest Subsidy Incentives offered to EV consumers include:

• A subsidy benefit of 20% of the cost will be available on the purchase of electric cycles with a cap of Rs. 5000. First 6000 vehicles sold per year will be incentivized under the scheme. 
• For electric two-wheelers, the Tamil Nadu government offers a subsidy incentive of up to Rs. 30,000 with a battery capacity of Rs. 10,000/kWh. The subsidy will be offered to the first 6000 commercial electric two-wheelers per year.  
• Electric three-wheelers (e-carts, autos, light goods carriers, etc.) with a battery capacity of Rs. 10,000/kWh can avail of a maximum subsidy of Rs. 40,000. The first 15,000 commercial e-3Wheelers will be incentivised per year.
• The Tamil Nadu government offers a maximum subsidy of Rs. 1.5 lakh on the purchase of commercial electric four-wheelers (such as cabs, taxis, goods vehicles, etc.) with a battery capacity of Rs. 10,000/kWh. The subsidy benefit will be offered to the first 3000 commercial e-4wheelers sold per year.  
• Under the scheme, a subsidy of up to Rs. 10 lakh is available on the purchase of electric buses with a battery capacity of Rs. 20,000/kWh. Under the subsidy scheme, only the first 300 electric vehicles are to be incentivized per year.

The EV subsidy incentives offered by the Tamil Nadu government will be applicable till 31st December 2025.

How to apply for the EV Subsidy in Tamil Nadu?

To claim the electric vehicle subsidy incentives, EV buyers have to submit an application form on the official TN EV Portal by providing all the necessary details.

After verifying the details of the claim application, the subsidy incentives will be provided to EV buyers through a Direct Benefit Transfer (DBT) system.

Note: Keep in mind that only EVs that are manufactured, sold, and registered in Tamil Nadu in compliance with FAME II standards will be eligible for EV subsidy benefits.

How to check the status of EV Subsidy in Tamil Nadu?

Electric Vehicle buyers can check the status of their EV subsidy claim by following the given steps.

• Visiting the official Tamil Nadu EV Portal
• Login by entering your username and password
• Provide your vehicle registration number and click on check status.

Check Electric Vehicle Subsidy for other states