The State Government's order says after careful examination it has decided to grant 100 per cent tax exemption for all battery-operated transport and non-transport vehicles.
The State has been taking various initiatives to boost the EV system in the state.
Tamil Nadu is planning to set up the country's first park exclusively for the electric vehicle production eco-system. The state is targeting investments of about Rs 50,000 crore in the EV segment and has announced a series of incentives to attract investments in this space.
Neeraj Mittal, MD & CEO at Guidance Bureau, Tamil Nadu, earlier said that the vision of the state government is to attract Rs 50,000 crore investment and to create 150,000 jobs with a comprehensive EV ecosystem in the state.
Last year, Tamil Nadu announced a comprehensive EV policy, which gives incentives and subsidies for both supply side and demand side. The policy covers the EV ecosystem with incentives to EV charging stations developers and to tap components including battery and cell manufacturing, electric motors, EV powertrains, battery management among others.
"We are also looking to set up an EV park which will spread across 300 acres of land," said Mittal, adding that the state offers various incentives including 100 per cent GST reimbursement, 50 per cent capital subsidy among others to attract investments.
The automobile and tech sector have invested profusely in Tamil Nadu. These investments have facilitated economic growth in the state and have helped it in becoming a flag bearer of the EV infrastructure in India, said Mittal.
Recently the company has signed MoUs with EV makers and suppliers including Ather Energy, MAHLE Electric, BYD among others.
Mittal said the state accounts for 35 per cent of the country's auto component production and nearly 30 per cent of four-wheeler manufacturing is from the state. Currently Tamil Nadu is home for nearly 20 OEMs covering all auto segments and over 350 auto component players and over 4,000 SMEs under Tier-IV in the state.
The state has got installed production capacity to produce 1.71 million passenger vehicles and 4.82 million two-wheelers every year.