Gujarat Announces New EV Subsidy Policy

• Incentives of up to Rs 1.5 lakh on offer 

• EVs registered under Gujarat RTO exempted from registration fees.

• The state also plans to add more charging stations.

• Currently, only the Tata Nexon EV’s XM variant is eligible for this subsidy.

The Gujarat government has announced a new electric vehicle policy in an effort to push EV adoption in the state. Under this policy, electric vehicle buyers can avail a subsidy of Rs 10,000 per kWh, capped at a maximum of Rs 1.5 lakh. However, for four-wheelers, the caveat is that only the ones with an ex-showroom price not exceeding Rs 15 lakh will be eligible for the benefits. The subsidy will be credited to the buyer's bank account through DBT (Direct Benefit Transfer). 

Another benefit accorded by this policy is that EVs registered under the Gujarat RTO will not be subject to registration fees. 

Shailesh Chandra, 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.” 

Under this policy, the state government aims to have up to 2 lakh electric vehicles in the state, including 1.10 lakh two-wheelers, 70,000 three-wheelers, and 20,000 four-wheelers. The state asserts that this policy can help save up to Rs 5 crore worth of fuel and reduce carbon dioxide emissions by 6 lakh tonnes. 

The government plans to install another 250 charging stations (at residential/commercial establishments and petrol stations) alongside the already functioning 278, which should take the total tally to over 500.  There will also be a 25 percent capital subsidy on charging equipment for the first 250 commercial EV charging stations (up to Rs 10 lakh per station), with a waiver on electricity duty for charging stations.

Only time will tell whether Gujarat’s EV policy can accelerate electric vehicle adoption, considering it will remain in force for four years as of now. Currently, among four-wheelers, only the Tata Nexon EV’s base-spec XM variant is eligible for the subsidy. Going forward, Mahindra will launch the all-electric KUV100 for private buyers soon. Also, Maruti Suzuki has been working on an all-electric WagonR, but there’s no launch timeline for that as yet.