Monday, May 25, 2026

Gujarat Government Lowered EV Road Tax To 1% Till March 2026

  • This scheme aims to boost EV adoption in the state.
  • Hybrid vehicles are not included in this scheme.
  • To avail benefits, EV buyers must register their vehicles on the Vahan portal.

The government of Gujarat has slashed the road tax on electric vehicles (EVs) from the earlier 6% to just 1%, valid till March 31, 2026. That’s a big drop of over 83%. This move is aimed at encouraging more people to switch to cleaner mobility solutions. To claim the rebate, EV owners must be registered through the Vahan Portal.

According to officials, the savings on an electric 2-wheeler could range from Rs 5,000 to Rs 10,000, depending on the model and cost of the vehicle. However, the savings are even more substantial in the case of four-wheelers. For example, the Tata Nexon EV’s Empowered+ LR variant costs Rs 16.99 lakh (ex-showroom) in Ahmedabad. With the revised RTO tax rate, it will now attract an RTO tax of just Rs 16,990, down from the earlier Rs 1,01,940. That’s a huge saving of Rs 84,950.

To avail the tax benefits, buyers must register their 4-wheeler on the Vahan 4.0 portal. However, it is worth noting that hybrid vehicles (both strong and mild) are not covered in this scheme.

Also Read: Tesla Model Y Spied Testing In India; Launch Imminent?

Also Read: Electric Cars and Resale Value: A Smart Investment or a Risky Bet?

Why did the government reduce the road tax?

The sales of electric vehicles in Gujarat have taken a significant hit last year, falling by 43.5% – from 88,614 units in 2023 to just 50,000 in 2024. Official suggests this drop was largely due to the withdrawal of subsidies in 2023, which earlier offered Rs 25,000 for electric 2-wheelers and up to Rs 1.5 lakh for 4-wheelers priced under Rs 15 lakh. So, to address the slowdown and encourage EV adoption once again, the government has introduced this new incentive to buyers.

Must Read: NHAI Denies Satellite-based Tolling from May 2025; Announces ANPR-FASTag for Barrier-free Toll Collection

Car News

2026 Tata Tiago, Tiago EV Facelift Set To Launch On May 28

0
Tata Motors has teased the exterior design of the upcoming Tiago and Tiago EV facelift and confirmed that their launch will take place on...

Tata Gears Up For Six Launches In FY2027

0
Tata Motors is gearing up to introduce six models in FY2027 (by March 2027). This will include two all-new models, along with four refreshed,...

2026 Maruti Brezza Facelift Likely To Get ADAS; Spied Testing

0
The Maruti Suzuki Brezza is set to undergo a facelift update, and the carmaker has been actively testing the SUV. Recently, fresh spy shots...
Nissan Tekton launch date

Nissan Tekton To Be Revealed On July 9

0
Nissan India has announced the debut date for the Tekton SUV, which is July 9, 2026. This will mark its return to the mid-size...

Related Articles

2026 Honda ZR-V Hybrid Incoming; Bookings Now Open

Alongside the launch of the 2026 Honda City facelift, the Japanese carmaker has also unveiled a new model for the Indian market, the ZR-V....

2026 Honda City Facelift Launched With Refreshed Design and Features

The 2026 Honda City facelift has finally been launched in India, with prices starting at Rs 12 lakh (ex-showroom). This marks the second facelift...

Govt Asks ARAI To Study E25 Fuel Impact On Existing Cars

The central government has tasked ARAI to carry out a detailed study on the impact of E25 fuel (25% ethanol-blended petrol) on the performance...

2026 Tata Tiago, Tiago EV Facelift Set To Launch On May 28

Tata Motors has teased the exterior design of the upcoming Tiago and Tiago EV facelift and confirmed that their launch will take place on...

Nissan Tekton To Be Revealed On July 9

Nissan India has announced the debut date for the Tekton SUV, which is July 9, 2026. This will mark its return to the mid-size...