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Old 16th September 2019, 21:19   #1
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Default Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

The Chief Minister of TN unveiled the Tamil Nadu Electric Policy 2019, which aims to create a comprehensive EV ecosystem in the State and make Tamil Nadu the preferred destination for EVs and component manufacturing units including battery and charging infrastructure.

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Highlights of the Policy:
  • Vision to attract ₹50,000 crore investments in EV manufacturing and create 1.5 lakh new jobs
  • All-electric vehicles including two and three-wheelers, cars, buses and commercial vehicles to get 100% road tax exemption till the end of 2022
  • Special incentives to the EV and their components manufacturers having a minimum investment of over ₹50 crores, creating employment opportunity for atleast 50 people
  • 100% refund of State GST (SGST) for EVs made and sold in Tamil Nadu until 2030
  • Capital subsidy of 15% and 20% for investments in EV manufacturing and battery production, respectively till 2025
  • Exclusive EV parks in major auto manufacturing hubs
  • 15% subsidy on the cost of land for an electric vehicle or parts production project in the state’s industrial parks. For projects started in southern districts, the investors will get 50% subsidies until 2022.
  • 100% exemption from stamp duty for purchase of land to establish EV and EV part units
  • The EV or parts production units in Tamil Nadu will also get 100% exemption from electricity tax
  • Charging infrastructure projects to be encouraged. Government will establish charging infrastructure on its own or through public-private partnerships
  • Changes in the building and construction laws to incorporate charging infrastructure in the planning stage

Source

Last edited by Warwithwheels : 16th September 2019 at 21:43.
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Old 16th September 2019, 21:51   #2
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

Quote:
Originally Posted by Warwithwheels View Post
The Chief Minister of TN unveiled the Tamil Nadu Electric Policy 2019, which aims to create a comprehensive EV ecosystem in the State and make Tamil Nadu the preferred destination for EVs and component manufacturing units including battery and charging infrastructure.
This is a great start. With all the hoopla around climate change going on globally, it makes sense to join the ‘ev’ bandwagon. Even though India is late to the party, but I guess it’s never too late to get started. I still believe India can make progress in this field provided states like TN come to the fore and announce such incentives

Last edited by GTO : 17th September 2019 at 10:09. Reason: Trimming quoted post
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Old 16th September 2019, 21:58   #3
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

I am saddened by the centers approach towards EV. On one hand they claim to be promoting green environment and EVs but this initiative shows how to promote a technology in a state/country. Kudos to TN CM.
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Old 16th September 2019, 22:24   #4
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

Happened to go through this thread (Video: German car industry struggling for survival) on German auto sectors imminent fate, and wondering how prepared we are. Good to see the move from TN. Tax breaks wherever possible, and stamp duty exemptions, are the way to go. Although some are preposterous - 100% road tax exemption till 2022, I wonder how many EVs will be on road before 2022. And some proposals sound too good to be true: capital subsidy of 15-20%, seriously. I seem to recall TN having trouble fulfilling their tax return commitment to Nissan.
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Old 16th September 2019, 22:27   #5
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

Just a small comparo of the price of Hyundai Kona in different states to understand the lack of uniformity in the EV promotion schemes. We need to have a central policy in place to reduce the disparity in pricing.

Mumbai(MH) takes the lead here. The TN prices are yet to reflect the proposed Road Tax waiver, I suppose. The figures are self explanatory.

Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers-screen-shot-20190916-10.20.22-pm.png

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Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers-screen-shot-20190916-10.22.40-pm.png

Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers-screen-shot-20190916-10.22.58-pm.png

Source: Carwale

Last edited by Warwithwheels : 16th September 2019 at 22:32.
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Old 16th September 2019, 23:34   #6
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

Good news IMHO!

Considering Chennai is already considered a favourable destination for automobile manufacturers in the country. Hyundai is already present there, along with Mahindra - and hopefully, both of them will take this opportunity to further progress on their first-mover advantage in the electric vehicle space. Even the Chinese companies like MG & BYD will be really looking forward to this, and strangely or co-incidentally, I was getting advertisements for the BYD brand in my social media channels since today evening.

But a gut feel says that's not the real news, and hopefully, we may have something more to come! Reading this headline today, another headline from last week suddenly came to mind.

Tamil Nadu CM was in the US last week visiting Tesla plant and battery-making units in the U.S. The CM said -

Quote:
“I invited Tesla electric vehicle unit in San Francisco. They say they will consider… They will visit the state shortly. We will also take efforts to Bloom Energy, a solid oxide fuel cell manufacturing company, to invest in the state"

Read more at:
http://timesofindia.indiatimes.com/a...campaign=cppst
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Hopefully, and with fingers crossed, I'm hoping these measures have something to do with the next round of discussions with Tesla! Will surely be a game-changer if those discussions go through.

Last edited by CrAzY dRiVeR : 16th September 2019 at 23:43.
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Old 17th September 2019, 00:15   #7
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

Good start! These are good initiatives to induce the investors to invest in TN. With major automobile players already invested in Chennai, it makes sense for the new investors to invest in TN to synergise their operations.

On a seperate note- Will Kona cost around 20 lakhs in TN with the proposed incentives/subsidies?
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Old 17th September 2019, 07:54   #8
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Default re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers

to Tamil Nadu! Am sure that Hyundai also had a lot of lobbying to get this into effect. After all, it's the biggest car manufacturer out of Tamil Nadu & the Koreans have a long line-up of EVs planned for India.

Quote:
Originally Posted by Warwithwheels View Post
All-electric vehicles including two and three-wheelers, cars, buses and commercial vehicles to get 100% road tax exemption till the end of 2022
Wow, that is really something!

Quote:
Special incentives to the EV and their components manufacturers having a minimum investment of over ₹50 crores, creating employment opportunity for atleast 50 people
Quote:
Capital subsidy of 15% and 20% for investments in EV manufacturing and battery production, respectively till 2025
Quote:
15% subsidy on the cost of land for an electric vehicle or parts production project in the state’s industrial parks. For projects started in southern districts, the investors will get 50% subsidies until 2022.
Tamil Nadu wants to create that ecosystem. Kudos!
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Old 17th September 2019, 08:30   #9
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Default Re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consume

I like this. It was the advent of Kona that prompted me to start thinking about replacing my CRV. But the lack of subsidies made me look elsewhere - the X1. Now that both the Center and State have published their EV policies, my interest in it is reinvigorated. I will TD the Kona and put it my bucket of possible future cars.
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Old 17th September 2019, 09:14   #10
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Default Re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consume

From today's The Hindu: T.N. releases e-vehicle policy

Honestly, I am doubtful about Centre's intentions on this front. While they speak of lofty goals on the ecological front, truth is they have actually been reducing subsidy. On the contrary, TN's move is more real, as it concerns a good portion of the economy of the state, especially Chennai, but certainly not borne out of concern for ecology.
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Old 17th September 2019, 09:33   #11
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Default Re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consume

I find it interesting. For a state that was struggling with load shedding problems and had huge power cuts in semi urban areas not so long ago, migration to EV system would be a challenge. However, i am no more a chennaiite as i have moved to bangalore a long time back, but friends and family often face this problem.

Hyundai, mahindra , renault , Nissan ( defunct?), RE , Ashok leyland etc are all there so there would be no dearth in technical resources. You have the CECRI ( Central electro chemical research institute) in karaikudi which develops batteries for space programs. So all ingredients are there , however political brass have no knowledge about EV's and IMHO it would be wise to bring in a good consultant to make this dream a reality.
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Old 17th September 2019, 10:06   #12
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Default Re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consume

Good for Tamil Nadu to dream big, but the policy makers should also be cognicent of the ground reality. TN leads in the curtailment of renewables as it has the highest penetration of renewables with an installed capacity of almost 12 GW.


Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consumers-capture.jpg


Unfortunately, such policies tend to become virtue signalling devices rather than actually influencing and motivating industry.


Source: https://www.downtoearth.org.in/news/energy/tamil-nadu-power-regulator-orders-against-solar-output-cut-63957


In my visits and meets with policy makers and think tanks in India, I find that there is a huge disconnect between what is the ground reality. Majority of the states do not have the capability -financial of meeting the renewable purchase obligations and they curtail as much as they can as their electricity distribution companies are bleeding money hand over fist. The states generally engage some think tank to develop the EV policy but then they fail in implementing it on the ground as they dont have the technical capability for execution.

Last edited by Maveryq : 17th September 2019 at 10:09. Reason: Added couple of lines
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Old 17th September 2019, 10:13   #13
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This is a great first step from the Government!!

It's over to the manufacturers to take the second step. I hope the Government machinery supports this rightfully as per the law.

The current downturn in Indian auto sector could actually serve as the catalyst/opportunity for India to accelerate investments in the EV space.

Let's face it, not many people in India are going to buy EVs to save the earth. They'll buy if it saves them money. The Government will not slash tax rates for regular vehicles but they can and will (like in this case) slash taxes for EVs.
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Old 17th September 2019, 12:08   #14
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Default Re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consume

Here's what Ather has to say:

Quote:
Tarun Mehta – CEO, Co-founder, Ather energy:

"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 building 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."
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Old 17th September 2019, 12:12   #15
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Default Re: Tamil Nadu unveils aggressive EV policy! Subsidies for manufacturers, tax exemptions for consume

This is urgently needed in Delhi. The air is just 'unbreathable'. TN didn't have that much pollution, last time I traveled. But kudos to the State administration anyways, for bringing in the future of mobility. Karnataka should follow.
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