Read This Before Buying An EV In Gujarat!

If you live in Gujarat and are planning to buy an electric vehicle, there is some great news for you! As part of the 2025-26 Gujarat budget, the government has reduced the RTO tax on EVs, applicable till March 31, 2026. This move will hope to boost sales, and also play a role in promoting green mobility. Here’s everything you need to know about the revised policy and how it will affect the common buyer: 

The Reason 

The reason for doing so and the sole purpose is to increase EV sales in the state which were on a decline in recent times. Notably, the EV sales decreased by 43.5 percent in 2024, with only 50,010 units being sold, dropping down from 88,614 in 2023. A 5 percent reduction in RTO tax would potentially help buyers save enough to upgrade to a higher variant or just purchase a few extra accessories. 

A Digitized Process

To ensure transparency and provide a hassle free experience, the tax relief will be granted to those who register their EVs online via the Vahan 4.0 portal. The online registration will also help in saving your time and efforts of actually going to the RTO centre in person and getting the job done. 

How It Materializes…

Let's understand the revised RTO tax by taking a simple example. If you are someone who’s buying a Rs 10 lakh, your earlier RTO tax on the car would be Rs 60,000 (6 percent). However, with the revised tax, you would have to pay only Rs 10,000 (1 percent) tax. So for a Rs 10 lakh car, you would be saving Rs 50,000. 

Currently, the Mahindra BE 6 is among the most popular EVs in the market. Consider buying its base variant which is priced at Rs 18.9 lakh. With the earlier 6 percent tax, you would have to pay Rs 1,13,400. With the revised tax, you end up paying just Rs 18,900, thereby saving Rs 94,500. 

In Other News

In addition to the RTO tax reduction, there is a relief on passenger vehicles classified under the maxi category as well. Previously, tax rates of 8 percent and 12 percent were applicable on maxi cabs, and that has now been revised to a constant rate of 6 percent. 

Officials have said that in the two-wheeler category, buyers will be able to save anywhere between Rs 5,000 to Rs 10,000, depending on the type of vehicle. 

It is important to note that the tax rebate is only for a period of 1 year and will be applicable only on vehicles that are completely electric. Strong hybrids or mild hybrids will not receive the benefit. 

Overall, this will generate more interest among potential car buyers and might even make ICE car buyers consider switching to EVs. What do you think about this move from the Gujarat government? And, which EV would you buy and why? Let us know in the comments section.