Auto industry welcomes Tamil Nadu’s EV policy: Here’s what it has to say

Tamil Nadu's new electric vehicle policy brings in several initiatives which are set to boost the sales of EVs in the state. Here is what major players in the electric vehicle space have to say about it.

By:Updated: Sep 17, 2019 4:01 PM
electric vehicles indiaImage for representational purpose only

In order to boost the use of electric vehicles in Tamil Nadu, the State Government on Monday announced a detailed policy in this regard. The policy which includes a slew of investment subsidies along with a waiver of a number of taxes and duties. According to the new policy, all forms of electric vehicles, be it two, three or four-wheelers will be exempted from the Motor Vehicle tax till 2022. In addition to this, battery and charging infrastructure manufacturers who have an investment of Rs 50 crore and are employing a minimum of 50 people will be given special concessions of 15 per cent on the manufacturing of electric vehicles and 20 per cent on batteries. This will include investments which were made until the year 2025. Furthermore, initiatives to bring up the required charging infrastructure has also been announced.

Commenting on the same Mahesh Babu, CEO, Mahindra Electric said “We welcome the draft policy by Tamil Nadu which is both progressive and comprehensive in nature. It outlines clear adoption strategies for last-mile connectivity through 3-wheelers and shared mobility by 4-wheelers. We appreciate the demand-side incentives provided by the government like road tax exemption, zero permit fees, registration charges waiver for 3-wheelers. We are looking forward to the implementation of this draft policy soon. Mahindra is ready with products like the TREO for helping the state achieve its EV adoption goal.”

Nagesh Basavanhalli, MD and CEO, Greaves Cotton Ltd said “We welcome The Tamil Nadu State Government’s policy on electric vehicles and it is a great initiative. With this, we inch a step closer to the dream of pollution-free, affordable EV mobility in the last mile. While this accelerates the adoption of electric vehicles, this will also open up a good avenue for the e-commerce and shared mobility segment.”

Tarun Mehta, CEO and Co-Founder, Ather Energy said “Tamil Nadu’s EV policy has taken into account the entire EV ecosystem and is extremely comprehensive. Removing the Road tax for end consumers will have a positive impact on the adoption rate of EVs in the state. And refunding the SGST along with the plethora of other OEM focused incentives make the state an attractive hub for manufacturing. The state has taken a long term approach to build R&D and skilled labour by also considering adding EV design and build to the curriculum in the state’s technical colleges. This creates a pipeline of talent for an industry that is currently managing with a dearth of talent that has hands on experience with EVs. The only aspect that will need more support is the charging infrastructure. As the policy mentions it is a critical part of the ecosystem and needs to be addressed. Fiscal support in the form of subsidies or investments in the sector would go along way to make TN a hub for EVs.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News