Gujarat Chief Minister Vijay Rupani on June 22 announced the state government’s four-year policy for electric vehicles thus becoming the fourth state to offer subsidies on battery-powered vehicles.
A subsidy of up to Rs 20,000 on electric two-wheelers, up to Rs 50,000 on electric three-wheelers and up to Rs 150,000 on electric four-wheelers will be provided by the Gujarat government. The incentives offered by Gujarat are similar to those offered by Bihar but higher than Delhi, Maharashtra and Kerala.
Around 125,000 two-wheelers, 75,000 three-wheelers and 25,000 four wheelers will benefit from these subsidies which will be based on per kilowatt hour of the vehicle, Gujarat CM added. While Delhi, Maharashtra, Kerala and Bihar have rolled out subsidy schemes for EVs, other states have provided tax reliefs on EVs.
Rupani said, “The EV policy announced today will be in force for four years. We want to promote EV usage as well as promote Gujarat as a destination for production of EVs. We are aiming to cut 600,000 tons of carbon emission and Rs 5 crore worth of fuel cost through this policy every year. We will be providing subsidies for charging stations too.”
As per the plan there will be 500 charging stations on the highway out of which 250 are already approved by the government. The state government will provide 25 percent capital subsidy up to Rs 10 lakh for battery charging stations.
The announcement by the Gujarat government comes a few days after the Centre announced the hiking of subsidy on electric two-wheelers. This resulted in a fall of up to Rs 14,500 in the price of certain electric two-wheelers.
As far as subsidy on electric four-wheelers is concerned Delhi and Bihar also offer a maximum of Rs 150,000 subsidy on them followed by Maharashtra with a maximum subsidy of Rs 100,000. Prices of Tata Nexon EV, Tata Tigor EV, MG ZS EV and Hyundai Kona are set to come down in Gujarat.
Sohinder Gill, director general, Society of Manufacturers of Electric Vehicles said, "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 mobilize a rapid adoption of electric vehicles in the state. 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."
Ather Energy, Hero Electric, Okinawa Scooters, Ampere Vehicles, Revolt form the electric two-wheeler space and Piaggio, Altigreen Propulsion, Mahindra Electric, from the electric three-wheeler space are set to bring down their prices.
The Gujarat government did not specify but these incentives will most likely be enjoyed only on lithium-ion powered high speed vehicles and not lead acid powered low speed vehicles.