Gujarat unveils bold EV policy, looks to become green hub

Targets 200,000 EV sales by 2025, offers subsidy of Rs 150,000 for e-four-wheelers, Rs 50,000 for e-three-wheelers and Rs 20,000 for e-two-wheelers.

By Nilesh Wadhwa calendar 22 Jun 2021 Views icon13422 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

Gujarat has become the latest state to announce a new electric vehicle (EV) policy to drive adoption of the eco-friendly vehicles. The announcement will further make owning an EV attractive for residents of the state, as the new benefits will be in addition to the revision in the FAME II policy announced earlier this month.

As per the new EV policy, the Gujarat government will provide incentive of up to Rs 10,000 per kWh for electric vehicles. The maximum ex-factory price to avail incentive for electric two-wheelers will be up to Rs 150,000, up to Rs 500,000 for electric three-wheelers and Rs 15 lakh for electric four-wheeler (personal and commercial) respectively.

Under the scheme, the government is targeting a total of 200,000 EVs which include 110,000 e-two-wheelers; 70,000 e-three-wheelers and 20,000 e-four-wheelers.

The government says all FAME II-eligible vehicles will be eligible for availing the benefits with a subsidy cap of 40% on the retail price of the vehicle. This means a maximum cap of Rs 150,000 for electric vehicles four-wheelers, Rs 50,000 for L5 electric three-wheelers and Rs 20,000 for electric two-wheelers. The incentive will be over and above FAME II subsidy, which will make the cost of an electric two-wheeler (upto 2kW) cheaper by almost Rs 50,000.

The subsidy will be provided under Direct Benefit Transfer (DBT) mode from the State Transport Department after verifying the document for the purchase of the vehicle.

Benefits for public EV charging stations
Furthermore, the government has also announced that commercial public EV charging stations for two-, three- and four-wheelers will be eligible for 25 percent capital subsidy on equipment/machinery (limited up to Rs 10 lakh per station) for the first 250 commercial public EV charging stations. All housing and commercial establishments will be needed to provide ‘No Objection Certificate’ (NOC) to its members who wish to install charging stations with designated parking spaces. Gujarat government will also forego electricity duty on EV charging stations during the policy period.

Sohinder Singh Gill, director General, SMEV

“We thank the government of Gujarat for announcing a promising and a bold EV policy. The policy certainly has a potential to make Gujarat an EV hub and would mobilise rapid adoption of EVs in the state. We are excited to be part of this journey and would put our all efforts towards achieving the state government’s target under the policy. The policy also gives thrust on the charging infrastructure that would address the issue of range anxiety, especially amongst the people who want to buy an electric four-wheeler.”

Shailesh Chandra, President – PVBU, Tata Motors

“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 cleaner environment and a sustainable future for the country. Also the support extended towards charging infrastructure will accelerate the ecosystem development and bring a greater comfort for EV buyers. We compliment the Gujarat government for introducing such a progressive policy.”

Naveen Munjal, MD, Hero Electric

“The revised EV policy by the state of Gujarat after the recent amendments of the central FAME policy is an excellent move which will further bridge the gap and make the switch to electric vehicles an attractive option. With this policy, the prices of Hero’s EVs will further come down, making them the most affordable in the state of Gujarat when compared to pricing across the country. Further, the allocation of funds and capital to setup additional charging stations will help build the much-needed charging infrastructure and address range anxiety of the consumer. As we at Hero Electric continue to expand our reach, set up charging points and reskill mechanics to create an ecosystem for EVs, additional subsidies from state governments through policies as this will help in the growth of EVs and transform the sector into a cleaner and greener mode of transportation.”

Tarun Mehta, CEO and co-founder, Ather Energy

"The new electric vehicle policy introduced by the Gujarat Government is a great move and will have a considerable impact on the adoption rate of EVs in the state. Gujarat has always taken a lead in encouraging green mobility through various progressive policies and initiatives, including the proposal to have the first EV only city, Kevadia. The government offering double the subsidy of any other state for every kWh will make it a leading destination for EVs. The incentives will make vehicles more affordable and accessible to the end consumers and will accelerate the charging infrastructure in the state. More progressive policies coming into play will certainly fast-track electric mobility adoption in the country.”

Nagesh Basavanhalli, MD & Group CEO, Greaves Cotton and Director, Ampere Vehicles

"The Gujarat Electric Vehicle Policy 2021 is a big step forward for EV manufacturers and consumers. It not only aims to reduce carbon emissions but also encourages young entrepreneurs to venture into the field of electric mobility. By giving an exciting opportunity to set up charging stations at fuel stations, the government is enhancing the EV infrastructure in a big way. At Ampere Electric, we are thrilled to see such initiatives to address charging infrastructure concerns. Adding more relevance with the exemptions and subsidies as announced, the Gujarat government is painting a bright future for clean tech mobility and last-mile connectivity."

Bhavish Aggarwal, Chairman and Group CEO, Ola

“India's EV revolution is coming. From Karnataka in 2017 to Gujarat just this week, 21 states and UTs are now incentivising EVs to make them affordable. We are committed to accelerating this with the Ola Futurefactory and our Ola scooter that's coming soon. “


Jeetender Sharma, MD and founder of Okinawa Autotech

"We are encouraged to see that more Indian states are stepping up their efforts to accelerate the adoption of EVs across the country by developing new programs and designing effective policies. The announcement of the Gujarat Electric Vehicle Policy 2021 brings up new opportunities for OEMs to work more diligently toward the collective goal of making India a global EV manufacturing powerhouse.”

Yatin Gupte, CMD, WardWizard Innovations and Mobility
 “The announcement of subsidy and the far-sighted initiative in the EV sector by the government of Gujarat is going to become a landmark development in the entire country. We have established our state-of-the-art assembly plant in Vadodara a few months ago, with a production capacity of the 3-4 lakh units in 2-3 shifts per annum. We are planning to introduce a three-wheeler product too. These initiatives of installing charging points, monetary subsidies, free registration of vehicles and making Gujarat a hub for EV companies will directly benefit the customers and environment.” 

Delhi notifies EV policy, targets 500,000 EVs by 2024 

Telangana announces EV policy, targets Rs 23,000 crore investment by 2030

Andhra Pradesh’s EV policy targets investment of Rs 30,000 crore by 2030

Maharashtra wants to be a major EV hub too, renews approach to be investors’ favourite


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