Tuesday, July 15, 2025

Gujrat EV Policy – Key Points To Note

To encourage buyers towards electric mobility, the Gujarat state government has announced a new electric vehicle policy, offering many benefits for EV owners, including a maximum subsidy of Rs 1.5 lakh. The policy will come into effect from July 2021 for the next four years. With this, the government intends to have up to 2 lakh EVs in the state, including 1.10 lakh electric 2-wheelers, 70,000 electric 3-wheelers, and 20,000 electric 4-wheelers. The govt states that this policy will help in reducing carbon dioxide (CO2) emissions by 6 lakh tonnes. 

subsidy on electric vehicles in Gujrat

Also Read: Government Revised FAME II Subsidy Scheme For Electric 2-Wheelers

Here are the key points that you would like to know about Gujrat’s new EV policy: – 

  • Subsidy/Incentive on EVs: – Under this clause, EV buyers can avail of a subsidy of Rs 10,000 per kWh of battery capacity alongside the benefits offered under Central Govt's Fame-II scheme. However, the state govt's subsidiary amount has capped at a maximum of Rs 1.5 lakh for electric cars, Rs 50,000 for electric three-wheelers, and Rs 20,000 for electric two-wheelers. Also, it is important to note that the ex-showroom price of the electric four-wheelers should not exceed the Rs 15 lakh mark. The subsidy amount will be directly credited to the owner's bank account through DBT (Direct Benefit Transfer) once the vehicle’s documentation has been successfully submitted and approved. 

  • No registration fees for EVs: – The Gujrat government has waived off the RTO registration charges for EVs. This will aid in reducing the on-road prices of EVs by a meaningful measure. 

  • Incentives for charging infrastructure development: – The government has plans to expand its EV charging infrastructure from the existing 278 stations to 528 charging stations across the state. For this, the govt is offering a 25 percent capital subsidy of up to Rs 10 lakh per station on charging equipment & machinery, alongside the waiver on electricity duty for charging stations. However, the scheme will be applicable only for the first 250 commercial EV charging stations. 

    The government has also directed the housing and commercial establishments to provide No-Objection Certificates (NOCs) for establishing charging stations at petrol pumps and designated parking spots.

Commenting on the EV Scheme, Shailesh Chandra, the president of the Passenger Vehicle Business Unit at Tata Motors, said-

We welcome the move by the Gujarat Government, offering incentive support for all categories of electric vehicles. This clearly signals a strong resolve of the government towards a cleaner environment and a sustainable future for the country. Also, the support extended towards charging infrastructure will accelerate the ecosystem development and bring greater comfort for EV buyers. We compliment the Gujarat Government for introducing such a progressive policy.

Also Read: Tata Could Launch Nexon EV Dark Edition Soon

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