Electric Bike Subsidy in Tamil Nadu: Benefits & How to Claim

Tamil Nadu has quietly become one of India’s most active EV regions. Cities like Chennai, Coimbatore, Trichy, Madurai, and Salem are seeing more and more riders switch to electric bikes for their daily commutes. The state itself supports this shift through EV-friendly policies, charging infrastructure growth, and meaningful tax relief.

This guide walks you through what subsidies and benefits are available for electric bike buyers in Tamil Nadu, how PM E-DRIVE works, and the steps involved in claiming these savings.

Does Tamil Nadu Currently Offer an Electric Bike Subsidy?

Tamil Nadu’s EV journey has always been long-term. Instead of focusing only on direct cash subsidies, the state has invested in manufacturing, charging networks, and tax incentives.

While there is no standalone electric bike subsidy in Tamil Nadu for the public right now, the government has extended a set of rather useful benefits*:

• 100% exemption on road tax for battery-operated electric two-wheelers, as per the latest Government Orders in Tamil Nadu.

PM e-Drive: Central Government Subsidy

To make EVs more accessible across India, the central government launched PM E-DRIVE, a national support scheme that applies to electric two-wheelers sold between October 2024 and March 2026.

Here’s what electric bike buyers in Tamil Nadu can expect:

• Buyers of approved electric bikes can receive an incentive of up to ₹10,000

This subsidy is applied directly to the customer invoice after Aadhaar e-KYC at the dealership.

How Much Subsidy Can You Get in Tamil Nadu?

When you join the benefits together, the savings add up nicely:

• PM E-DRIVE incentive: Up to ₹10,000 (for eligible models)
  Road tax: Fully exempt

Together, these benefits can reduce the effective on-road price of an electric bike by ₹10,000 or more, depending on the model and eligibility conditions.

Eligibility Criteria

To receive subsidy on electric bikes in Tamil Nadu, riders must meet the following requirements:

• Must be a resident of Tamil Nadu
• The electric bike must be purchased from an authorised TN dealer
• The EV must comply with CMVR standards
• Battery must meet safety and performance norms
• Valid ID and an active bank account are necessary

How to Claim PM E-DRIVE (Central Subsidy)

1. Buy an eligible electric two-wheeler

The vehicle must meet CMVR standards and be approved under PM E-DRIVE. Oben Electric bikes meet all the criteria's and are approved under PM E-DRIVE.

2. Complete Aadhaar-based e-KYC at the dealership

The dealer collects Aadhaar information and verifies identity through the PM E-DRIVE portal.

3. Dealer generates the e-Voucher

After e-KYC, the portal calculates the incentive:

PM E-DRIVE incentive: Up to ₹10,000 (for eligible models)

The buyer and dealer digitally sign the e-Voucher.

4. Subsidy is deducted upfront on the invoice

As mandated in the guidelines, the incentive is given as an upfront reduction in the purchase price.

5. Manufacturer (OEM) claims reimbursement from the Government

The dealer uploads the signed e-Voucher. The incentive is subsequently reimbursed to the Original Equipment Manufacturers (OEMs) like Oben Electric by the Ministry of Heavy Industries for reimbursement.

Note - This last step involves the OEM; the buyer does not need to apply or follow up.

Documents Required

As part of the dealer-led verification and subsequent manufacturer reimbursement process under PM E-DRIVE, the documents listed below are required.:

• Aadhaar number (for Aadhaar-based e-KYC at the dealership)
• Buyer details recorded during e-KYC (name, mobile number, address)
• EV two-wheeler purchase invoice
• Bike details (model, VIN/chassis number, battery capacity)
• Vehicle Registration Number (submitted by the OEM after registration)

Conclusion

Tamil Nadu continues to be one of the strongest EV markets in the country, even without a direct state subsidy. With central support through PM E-DRIVE benefits and the state’s complete exemption from road tax, electric bikes offer solid value for everyday riders. Beyond these incentives, electric bikes naturally come with much lower running and maintenance costs, adding to the long-term savings.

Understanding the available incentives helps buyers make informed decisions and enjoy long-term savings.

Also Read:

Electric Bike Subsidy in Gujarat: Benefits & How to Claim
Electric Bike Subsidy in Maharashtra: Benefits & How to Claim
EMPS 2024 Explained

Electric Bike Range for Daily Office Riders

How Much Your Daily Commute Actually Costs (Petrol vs Electric Bike)

Oben Electric bikes:

Oben Rorr EZ Sigma

Oben Rorr EZ

Oben Rorr

Popular Blogs:

Electric Bike Subsidy in India: A Complete Guide

Oben Electric Featured as Zee TV IdeaBaaz’s First Success Story
Oben Electric Raises INR 85 Crores in Pre-Series B Round, Enters Next Phase of Growth
Oben Electric’s Rorr EZ Sigma Now Available on Flipkart
Delhi's EV Policy 2.0 Draft Explained: Potential Ban on Petrol Two-Wheelers in Delhi
RTO Rules for Electric Bikes vs Petrol Bikes in India: What You Need to Know

Electric vs Petrol Bike: Which Is Better?

New Launches:

Oben Electric is gearing up to launch Its Second Indigenous Platform, ‘O100’, to Enter India’s 100cc Equivalent Electric Motorcycle Segment

Check out all our blogs on the website. Locate our showroom or book a test drive now.