Tamil Nadu is not just adapting to the global transition toward electric mobility—it is leading it. Tamil Nadu, once known for making regular cars, is changing in a big way. Thanks to forward-thinking leaders, smart investments, and better infrastructure, this southern Indian state is becoming a leader in electric vehicles (EVs) in India. It’s not just about the cars themselves, it’s about creating jobs, coming up with new ideas, using clean energy, and growing the economy in a way that lasts.
Policies and The Transition to Electric Vehicles
Tamil Nadu initiated its transition to electric vehicles in 2019 with a first EV policy. This was more than a plan or policy; it was a commitment to driving the electrification of vehicles to address both environmental and commercial purpose. By 2023, the state updated this policy to add stronger, more specific incentives.
The state’s updated electric mobility policy offers:
- No road tax or registration fees for any kind of EV until the end of 2025.
- Commercial EVs like e-autos and delivery vehicles don’t have to pay permit fees.
- You can get up to ₹10 lakh back for putting in fast EV chargers, and ₹1 lakh for slower ones.
- Battery swapping stations get ₹2 lakh in support.
- They’ll cut your loan interest by 5% each year on loans up to ₹4 crore.
- EV-related businesses get a break on electricity tax for five years, plus they get back their SGST.
Basically, all these perks are about making EVs a big deal for the state’s industry and environment.
Electrifying Infrastructure Across Tamil Nadu
Tamil Nadu understands that a successful electric mobility revolution requires infrastructure to match. Through industrial corridors like Chennai–Bengaluru and Chennai–Kanyakumari, the state has developed dedicated zones that are now magnets for EV manufacturers.
Top global and Indian players such as Ola Electric, TVS Motor, BYD, and Ather Energy have already set up or expanded their electric mobility operations. Ola Electric, for instance, is building one of the world’s largest two-wheeler EV factories near Krishnagiri. These facilities are more than factories—they are job engines fueling the state’s clean transport mission.
The government has also pushed forward with a strong charging network under its electric mobility plan. Goals include:
- A public charging station every 25 km along highways
- EV infrastructure mandates for residential complexes and schools
- Minimum 20% EV-ready parking in new buildings
- Mandatory chargers in schools with over 1,000 students by 2026
- Emphasis on solar-powered stations and PPP models
Electric mobility is not just about the vehicle—it’s about the ecosystem. And Tamil Nadu is building that ecosystem at scale.
Transforming Public Transport through Electric Mobility
Tamil Nadu is applying electric mobility to public and commercial transport. The Vyasarpadi depot in Chennai has already launched 120 electric buses in collaboration with the World Bank and ADB. The plan is to make 30% of all state-owned vehicles electric by 2030.
To get businesses and ride-sharing services on board, we’re offering tax breaks, subsidies to help them run things, and interest rebates if they switch to electric. This should help electric vehicles become the norm for all types of transport like buses, taxis, vans, and auto rickshaws.
This push isn’t just good for the environment, it also makes sense. Less pollution, cheaper running costs, and nicer rides are making electric vehicles more and more popular with the public.
Creating Jobs Through Electric Mobility
The government expects 1.5 lakh additional jobs across the electric mobility ecosystem in Tamil Nadu by 2030, covering everything from manufacturing to battery assembly, R&D, charging station management, and maintenance.
The following initiatives will continue to enhance the number of electric mobility jobs:
- ₹24,000 crore worth of MoUs signed with the world’s largest manufacturers like VinFast and Tata Motors.
- EPF reimbursement of up to ₹48,000 per employee for local hiring in EV projects.
- Women empowerment programs for involvement in EV-based entrepreneurship and employment
- Skilling centers, particularly in EV, are being established in partnership with polytechnic and engineering colleges.
As a senior HR manager for a new battery factory in Hosur has pointed out, “This isn’t just about hiring engineers, we are developing the electric mobility future with the locals”.
Innovation & R&D: The Future of Electric Mobility
Tamil Nadu is making a massive bet on research and innovation in electric mobility. With dedicated zones in Chennai, Hosur and Coimbatore, start-ups and established global companies can invest in advanced technologies like:
- Next-gen lithium-ion and solid-state batteries
- EV-specific operating systems (EV-OS)
- Hydrogen fuel cells
- Telematics and fleet optimization solutions
The Mobility Innovation Fund supports advanced electric mobility research, while partnerships with institutes such as IIT Madras, Anna University and others are bringing researchers and academia into Tamil Nadu’s electric mobility ambition.
Skills Development: Getting the workforce ready for an electric mobility future
Tamil Nadu’s “Mobility Skills 2030” program is one of India’s most systematic talent development initiatives, with a focus on electric mobility only. The training programs cover:
- Electric powertrains
- Embedded systems
- Thermal & battery management
- Smart logistics and analytics
Unlike the short-term programs run in various states, Tamil Nadu’s electric mobility skilling programs are long-term, industry-prepared programs, with support in the form of financial aid for ICE-based companies to transition and retain workers.
Circular Economy & Sustainable Electric Mobility
When we think of electric mobility, Tamil Nadu’s electric mobility mission covers (and considers) much more than EV manufacturing. It looks at sustainability at every step of your electric mobility mission. For example, the battery recycling hubs emerging around Hosur and Chennai will recover potential resources such as lithium and cobalt.
This battery-recycling program fits at a high level into the circle economy – meaning: repurpose or recycle your batteries; don’t just throw them away. Circular economies are safer because they reduce waste, but at the same time, building a circular economy with batteries further reduces environmental impact and costs, ultimately providing a source of materials over the long term to support the growth of electric mobility.
Leading in EV Manufacturing: The Numbers Are Clear
At present, Tamil Nadu produces 70% of India’s electric two-wheelers, demonstrating its strength in electric mobility manufacturing.
Key projects include:
- VinFast’s ₹16,000 crore EV factory in Tuticorin (150,000 units per year) creating over 3,000 jobs.
- Tata Motors’ ₹9,000 crore electric vehicle factory, projected to create 5,000 jobs.
- Delta Electronics is expanding its electric vehicle charger production facility.
- Eaton is also expanding its electric vehicle charger production facility.
Projects happening in Tamil Nadu because it offers one of the most generous electric mobility subsidy systems in India. Additionally, the state provides fast processing of applications and clearances, stable policies, and an available talent pool which are all important factors to support the growth of electric mobility.
Tamil Nadu vs. Other States: Leading India’s EV Transition
| State | Electric Mobility Focus | Unique Features | Challenges |
|---|---|---|---|
| Tamil Nadu | Manufacturing, R&D, Retrofitting | EV Cell, OEM cluster, skilling programs | Lower cap on consumer incentives |
| Delhi | Public transport, delivery fleets | High consumer subsidies, scrapping support | Weak in manufacturing |
| Maharashtra | MSMEs, recycling | Retrofit support, early incentives | Slow public EV fleet rollout |
| Uttar Pradesh | Logistics, industrial zones | Interest subvention, early bird perks | Weak R&D and skilling |
| Karnataka | Startups, component manufacturing | Bengaluru EV cluster, VC ecosystem | Lacks targeted job creation plans |
Tamil Nadu leads in electric mobility when it comes to manufacturing-linked employment, skilling programs, and policy execution. With a high investment-to-job ratio and sustained private sector engagement, it stands out.
Empowering Micro-Small and Medium Enterprises (MSMEs) and Inclusive Electric Mobility
As Tamil Nadu’s electric mobility grows, it also provides support in many ways for MSMEs, as well as informal workers, such as mechanics and other small fleet owners. The Tamil Nadu Investment Promotion Program (TNIPP) provides small business firms with resources to help gain entry to the EV supply chain.
Women entrepreneurs are encouraged through targeted subsidies, access to affordable housing, and dedicated business support programs. This makes electric mobility an inclusive growth engine.
Looking Forward: The Future is Electric
By mid-2025, Tamil Nadu had already secured over ₹27,000 crore in electric mobility investments. Its dedicated EV Cell under GUIDANCE Tamil Nadu ensures that policies are implemented efficiently and progress is tracked regularly.
But this is only the beginning. With oil import bills rising and climate concerns intensifying, Tamil Nadu’s electric mobility model is both urgent and visionary.
If the state expands its incentive limits and ramps up public fleet electrification, it could easily become the national benchmark for EV readiness and job creation. More than just a manufacturing hub, Tamil Nadu is now the pulse of India’s electric mobility revolution.
Conclusion
Tamil Nadu’s strategy for electric mobility is bold, structured, and inclusive. It integrates cutting-edge innovation, skilled human capital, manufacturing excellence, and sustainable infrastructure. With the foundation already laid and momentum building, the state is perfectly positioned to lead India into a cleaner, smarter transport future.
Electric mobility is not just a policy goal in Tamil Nadu—it’s a movement. And with every new EV produced, every charger installed, and every youth trained, the state accelerates toward becoming the true electric capital of India.