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-   -   Tamil Nadu offers road tax exemption on hybrid vehicles (https://www.team-bhp.com/forum/electric-cars/262606-tamil-nadu-offers-road-tax-exemption-hybrid-vehicles.html)

The Tamil Nadu state government has announced its new EV policy. It covers everything from batteries, charging infrastructure and crucially, hybrid vehicles.



As per the new policy, electric vehicles (EVs), which include battery electric vehicles (BEV), plug-in electric vehicles (PEV), plug-in hybrid electric vehicles (PHEV) and strong hybrid electric vehicles (SHEV) will receive incentives in the form of road tax, registration and permit fee exemptions.

Depending on the battery capacity, the state will offer incentives of Rs 5,000 to Rs 10 lakh on commercial electric vehicles. IC engine to EV conversions will also be incentivized.

The government will promote Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem and Tirunelveli as pilot cities for implementing e-mobility solutions. The state will offer incentives to charging and battery swapping stations and will also revise the power tariff for public charging stations.

The state government aims to create over 48,000 new jobs in the EV value chain. EV projects will be provided employment incentives in the form of reimbursements for the employer’s contribution to the EPF. It will offer financial support to companies who wish to venture into EV manufacturing.

EV projects will be provided 100% electricity tax exemption for a period of 5 years on power purchased from the state power distribution company or generated from captive sources.

As per the new EV policy, the state government will amend building and construction laws to ensure charging infrastructure is integrated at the planning stage itself.

Source: ET

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A smart move. I wonder if I can register my Hycross hybrid in Tamil Nadu and avoid the 7L tax that the kerala govt has so short sightedly imposed.

A great initiative, hope other states follow suit as well! The new mass-market Hybrid cars launched will get a massive boost in sales.

That's a great move by the TN govt.

Does that mean we can expect a saving of INR 2-3L (in terms of road tax + registration charges) for Grand Vitara strong hybrid and Urban Cruiser Hyryder?

Will the Ex showroom price come down too? Are there any tax benefits for the manufacturer?

Someone from my organisation did a BH registration from outside and is using his SUV here! If your company has office in more than 4 states you can take that route!

Good initiative from an administration that seems to be operating well.

Btw there was a preceding EV policy by the previous administration as well, started in 2019 and just ended last year in 2022. So this is by and large an extension, revision, and enhancement of that policy.

Just to clarify, the exemptions on road tax and other things are only till end of December 31st 2025 as of now.

Both, 2019 EV policy and 2023 EV policy attached for reference.

This is a great initiative. For people with low running, hybrids never made sense. With this, most city users can migrate to hybrids, where the real efficiency is. Wish small hybrids are launched soon.

Happy motoring.

Is this exemption linked to battery capacity ? Hybrids on our road today have very puny batteries and might only save few thousands considering their price above 15-20Lakhs.

Will wait for some one to share their real life experience.

Guess many in my district would enlist the help of their relatives or make use of the ancestral properties/farm lands to register the vehicles across the border.

Saving a cool 3-6 lakh rupees is not a small thing.

That said, can only dream of Kerala doing any such thing. Though the tax rate for BEVs is fixed at 5% instead of the 50% exemption earlier, there is nothing for hybrids. :sadface

I just had my Hyryder Hybrid registered in TN a few days ago, so I feel some buyer's remorse after reading this. I did ask the sales executive at Toyota and he mentioned that they were waiting on the specifics.

That being said, I'm not sure how this helps the state's goals of becoming an EV hub. Toyota dominates the hybrid space and this should end up benefiting production in Karnataka more than Tamil Nadu. I see the big TN-based automotive manufacturers such as Hyundai, Nissan and Citroen moving straight to fully electric vehicles.

Moreover, incentives like this might hurt, and not help pure-EV adoption. Post the hybrid vehicle registration and tax waiver, I'd pick a Hybrid Hyryder at ~Rs. 16 lakh onroad versus a basic Nexon EV at about Rs. 18 Lakh; a Hybrid Honda City at 20L over an MG ZS at Rs. 28L or a Rs. 25L Hycross VX versus a Rs.35L BYD EV.

Tax rebate is just one of the factors influencing those opting for pure EV. There are much more relevant factors that a potential EV buyer eye with his/her EV; like performance, independence from fossil fuel, novelty, maintenance free experience etc.

They should immediately work on new building codes such that each parking should have a plug point and also give 1-2 years time for old buildings to install common chargers to their residents.

According to the definition SHEV is also included in previous policy, what was the change now, why hybrids not exempted earlier but only now.

2019 policy:
The term EVs as used in the policy refers to battery electric vehicles (BEV), plug-in electric vehicles (PEV), plug-in hybrid electric vehicles (PHEV) and strong hybrid electric vehicles (SHEV).

Waiver on Registraon charges/fees will be done as per Government of India's notificaon. Road tax exemption will be enhanced from 50% to 100% till 30.12.2022.

2023 policy:
EVs comprise battery electric vehicles (BEV), plug-in electric vehicles (PEV), plug-in hybrid electric vehicles (PHEV) and strong hybrid electric vehicles (SHEV).

Road Tax Exemption
100% road tax exemption will be provided till 31.12.2025 for the following categories of EV battery-operated vehicles, namely, two-wheelers, private cars, three-seater auto-rickshaws, transport vehicles (such as taxis, tourist cars etc.), light goods carriers (including three-wheelers), and buses.

Waiver on Registration Charges/Fees Waiver on Registration charges/fees will be provided till 31.12.2025 for the following categories of EV battery-operated vehicles, namely, two-wheelers, private cars, three-seater auto-rickshaws, transport vehicles (such as taxis, tourist cars, etc.), light goods carriers (including three-wheelers) and buses.

I agree that EVs have many specific merits. But the for the masses, economics and convenience will triumph. With Hybrids there are no worries about range, similar running costs as EVs on highways and much lower upfront prices post subsidy. I think people would pick hybrids over the EVs that the TN government is trying to build an ecosystem for.

Nevertheless, it's still a great move from the perspective of buyers and I see Toyota dealers laughing their way to the bank.

I will not be surprised if Maruti, Toyota and Honda use this opportunity to steadily increase the Ex show room price of their strong hybrids during this year.

It's not a national policy. Doubt they can increase the price in just Tamilnadu