Tuesday, August 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

Upcoming Volkswagen SUV

Volkswagen Confirms New Compact SUV For India To Rival Tata Nexon, Maruti Brezza

0
Volkswagen has officially confirmed a sub-4m SUV for the Indian market, which will be launched sometimes in 2027. The upcoming SUV will share its...

2026 Mahindra BE 6 SPORTEQ Three Plus Variant Explained: Price, Features, Specs and Images

0
Are you planning to buy the recently updated Mahindra BE 6, now christened "BE 6 Sporteq"? The upgraded electric SUV receives a new interior...

BYD Sealion 7 Gets More Affordable With Introduction of The New Dynamic Variant

0
BYD has introduced a new entry-level Dynamic variant for the Sealion 7 EV at Rs 41.90 lakh (ex-showroom). At this price point, it is...
2026 Skoda Superb diesel India launch timeline

Skoda Superb Revealed With Diesel Engine; Launch Next Year

0
With the unveiling of the 2026 Skoda Slavia Facelift, the Czech automaker has also revealed the 4th-generation Superb executive sedan for the Indian market....

Related Articles

2026 Mahindra BE 6 SPORTEQ Three Plus Variant Explained: Price, Features, Specs and Images

Are you planning to buy the recently updated Mahindra BE 6, now christened "BE 6 Sporteq"? The upgraded electric SUV receives a new interior...

2026 Mahindra BE 6 SPORTEQ Formula Edition Explained

With the introduction of the updated BE 6 SUV, now called BE 6 Sporteq, Mahindra has also introduced the upgraded BE 6 Formula E...

2026 Mahindra BE 6 SPORTEQ Three Variant Detailed: Price, Features, Specs and Images

Mahindra has recently given the BE 6 a model year upgrade (now called BE 6 Sporteq), introducing a new cabin design, an updated features...

Volkswagen Confirms New Compact SUV For India To Rival Tata Nexon, Maruti Brezza

Volkswagen has officially confirmed a sub-4m SUV for the Indian market, which will be launched sometimes in 2027. The upcoming SUV will share its...

Tata Cars Prices Set To Increase From September 2026

Tata Motors announced that it will increase prices across its portfolio by up to Rs 25,000, covering both internal combustion engine (ICE) and electric...