100 Per Cent Tax Exemption On E-Vehicles, To Attract Manufacturers To Tamil Nadu

Tamil Nadu state government has announced 100% tax exemption on e vehicles, this will apply on commercial e-vehicles as well, from date of announcement i.e. November 3, 2020 to December 31, 2022.

Several manufacturers welcomed the move, Hyundai Vice-President BC Datta said, 100 per cent tax exemption was in line with.

Datta also said, Hyundai’s SUV, Kona, which was launched in Indian market previous year at price of 25.3 lakh, which included motor vehicle tax of Rs. 1.65 lakh, will be even cheaper with 100 per cent tax exemption.

Some of the companies have shown clear interests in manufacturing in Tamil Nadu, likes of, two-wheeler e-vehicle (EV) manufacturer Okinawa and Ampere, and swappable battery manufacturer and charging infrastructure developer, SUN Mobility.

Ampere spokesperson said, it is planning on investing Rs. 400 crore to expand from current capacity of 50,000 to 2,50,000 in electric wheeler production capacity, and Ampere will finalise the decision based on government’s incentive package, and this juncture company remains in silent mode.

Chinese manufacturer, BYD is planning to invest Rs. 2,800 crore in the state to manufacture EV components and batteries, and Ather Energy is also planning to invest in a facility near Chennai.

Jeetender Sharma, founder & Managing Director, Okinawa, said that Tamil Nadu alone is 20 per cent of their two-wheeler EV, with tax exemptions in line, they can think of setting up an assembly line in Tamil Nadu.

State Industry Secretory, N Muruganandam, said, the new tax exemption notification will prompt more EV and battery makers to set up facility in the state, Hyundai already has a product in market, Nisan is coming up with EV soon, the state government is making conducive environment to attract more investments in the sector.

Clean energy activists also have welcomed the move to promote EV, but with few concerns such as purchase of new vehicles should come with old vehicle buy back and scrappage policy, as it would control number of vehicles in system, and would be better if it was supported by clean energy, reported The Hindu.