As Tamil Nadu is ahead of other states in attracting investments in e-mobility space by accounting for little over a third of overall EV investments in the country, the state can also be a dominant state in EV registrations, where it has slipped from 3rd position last year.

In 2021, Tamil Nadu had the third-highest registered EVs in the country, but by August 2022, it slipped to the 6th position, as per data provided by Vahan. As the State aims to release a revised EV policy, there is a strong case to promote more EVs on the roads in the state. If Tamil Nadu can convert 5-10 per cent of its two, three and four wheelers to electric by 2030, it could save 36-38 million tonnes of carbon emissions, according to a study by Climate Trends.

Renewable energy capacity

“Tamil Nadu is already a leader in installed renewable energy capacity in the country through progressive policies and schemes. It is also the hub for automobile companies. A targeted approach to transport electrification, through investments, policies and government attention will have a major contribution towards reduction in carbon emissions for the state,” said Aarti Khosla, Director, Climate Trends.

The study discusses two scenarios for electrification of the auto sector in the state. If 5 per cent of all vehicle sales till 2030 are converted to electric, Tamil Nadu can save 36.53 million tonnes of carbon emissions. As per this target, Tamil Nadu can have close to 35.9 lakh EVs on road. If 10 per cent of newly registered vehicles between 2022-2030 are converted to electric, Tamil Nadu can save 38.76 million tonnes of carbon emissions. As per this target, Tamil Nadu could have close to 38.6 lakh EVs on road.

So far, Tamil Nadu has not fixed any target on the percentage of electric vehicles to be on its roads.

The study claims to have found out that there has been a large appetite for electric vehicles in rural Tamil Nadu. In two-wheelers, about 78 per cent of the sales come from towns and cities with less than 10 lakh population. Presently, electric two-wheelers make up about 90 per cent of the overall EV registrations in the state.

Adoption of electric models

Since Tamil Nadu is one of the largest markets for two-wheelers and this segment is seeing faster adoption of electric models in the country, supported by an improving ecosystem, there is a big opportunity for the State Government to drive the shift toward cleaner mobility options from diesel or petrol-powered vehicles.

As of 2022, 35 per cent of all investments that have happened in the e-mobility space in India, have come to Tamil Nadu. Also, over the next five years, Tamil Nadu is reported to be ahead of the curve again as it is expected to account for about 34 per cent of the planned total EV investments of ₹94,000 crore.

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