CHENNAI — The Tamil Nadu government has rolled out enhanced incentives and subsidies for electric two-wheelers as part of its push to accelerate green mobility and make electric vehicles (EVs) more affordable for residents. In the 2025-26 state budget, officials approved a ₹20,000 subsidy on the purchase of electric scooters for registered gig workers within the state’s welfare board, with ₹4 crore allocated toward the programme — a move designed to support both mobility and livelihoods while promoting sustainable transport.
In addition to direct cash support for e-scooter buyers, the state has also extended 100 % road tax exemptions for battery-operated EVs — including two-wheelers, three-wheelers, and cars — through December 31, 2027, under updated government orders aimed at increasing the uptake of clean vehicles.
The combined incentives are expected to reduce upfront costs and improve affordability for potential buyers, particularly delivery riders and other gig economy participants who rely on two-wheelers for income. Analysts say such subsidies, along with exemption of state taxes, are likely to spur EV adoption across urban and semi-urban regions like Chennai, Coimbatore, and Madurai by countering high initial purchase prices compared with internal-combustion-engine alternatives.
While most recent measures focus on scooters and motorcycles, stakeholders are urging the state to broaden support to other EV segments and charging infrastructure to sustain long-term growth in electric mobility ecosystems. News as reported
