Tamil Nadu, which is home to key electric vehicle makers, will see its state Electric Vehicle Policy come to an end today, (on December 30, 2022). The state EV policy which was introduced on November 2, 2020, was for a period of two years.
The policy provided 100% exemption on road taxes and registration for electric two-wheelers. For electric cars, the subsidy exemption ranged between 50-100% on electric cars. It also had provisions for electric vehicle charging infrastructure as well.
Now, with the state policy coming to an end, the cost of an electric two-wheeler is estimated to go up by at least 15 percent or more.
While there is no data available on the number of vehicles benefited under the state policy. The ambitious policy was introduced in the middle of the Covid-19 pandemic, which also saw a lot of disruption in the supply chain ecosystem as well.
In fact, while the FAME II and State subsidies had an ambitious target, the last two-years saw price hike and challenges in key raw material supplies like – Cathode, electronics and semiconductor.
But with most State EV policies came with a tenure of two years, Tamil Nadu will become the first state where the policy comes to an end, unknowing to most the percentage of objective met.