No registration fee, up to Rs 20,000 off on electric 2-wheelers: Gujarat EV policy decoded

A subsidy support of Rs 870 crore for four years will be provided wherein up to Rs 20,000 off on electric two-wheelers will be given.

By:Updated: Jun 25, 2021 12:21 PM
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The state of Gujarat has come up with a new electric vehicle policy. Chief Minister Vijay Rupani announced the start of this new EV policy. The minister said that electric vehicle buyers will get subsidies of Rs 10,000/kWh. A subsidy support of Rs 870 crore for four years will be provided wherein up to Rs 20,000 off on electric two-wheelers will be given. Moreover, electric three-wheelers will get a subsidy of up to Rs 50,000 whereas four-wheeler buyers stand to gain by the Rs 1.5 lakh discount. These subsidies will be given to the buyers through Direct Benefit Transfer scheme that the government introduced in 2013. The best part is that the registration fees too are exempted for all kinds of electric vehicles in Gujarat. Under the FAME II policy, more than 278 charging stations too have been approved for the state.

The state government will help with the installation of 250 additional charging stations and at the same time, provide 25 percent capital subsidy. The latter has a cap of Rs 10 lakh for charging stations. The aforementioned subsidies for the vehicles though comes with a clause. For a two-wheeler, the price has to be up to Rs 1.5 lakh while for a three-wheeler, it is five lakh. As for four-wheeler buyers, the cap has been set at Rs 15 lakh. For the latter, one then cannot go for premium models like the MG ZS EV, or even the Jaguar i-Pace. This subsidy looks good for the Mahindra range of electric three-and four-wheelers at present. There is also the Tata Nexon and Tigor EV that can benefit from this.

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Sohinder Gill, DG, Society of Manufacturers of electric vehicles (SMEV) said, “We thank the government of Gujarat for announcing a promising and bold EV policy. The policy certainly has the potential to make Gujarat an EV hub and would mobilize a rapid adoption of electric vehicles 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.”

Naveen Munjal, MD, Hero Electric said, “The revised EV policy by the state of Gujarat post 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.”

Mahesh Babu, CEO, Mahindra Electric Mobility Ltd said, “We thank the Gujarat government for notifying the new EV policy which is both progressive and comprehensive in nature. The outlay of Rs 870 crore over the next 4 years will help EVs flourish in the state of Gujarat. The policy outlines clear adoption strategies, especially in the last mile mobility segment. The fiscal benefits being offered by the government will directly benefit the end customer while the non-fiscal benefits will help develop the overall EV ecosystem in the State. Mahindra is eager to deploy products like the Treo three-wheeler range which will help customers to earn more given its lower operating cost and will help Gujarat become one of the leading States in EV adoption states in the country.”

Nakul Kukar, Founder and CEO, Cell Propulsion said “With the announcement of the e-vehicle policy the Gujarat government is enabling the inevitable transition from carbon-emitting vehicles to cleaner forms of transportation. The Gujarat Electric Vehicle Policy 2021 comes at an opportune time when both central and state governments are taking encouraging steps to boost awareness as well as the adoption of EVs. The various incentives coming from the government are encouraging for all the industry stakeholders and will in turn be a big step towards accelerating this transition. At Cell Propulsion, we see a huge potential in developing electric commercial vehicles. We anticipate such encouraging announcements for the commercial vehicle segment as well. The approval for the establishment of charging stations at the petrol pumps is a huge boost for the industry and we are certain that it will pave the way for faster adoption of EVs across the country.”

Yatin Gupte, Chairman and Managing Director, WardWizard Innovations and Mobility Ltd said “The announcement of ‘subsidy and the far-sighted initiative’ in the electric vehicle 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 3-4L units in 2-3 shifts per annum, which I am sure will help in meeting the government’s goal to reach 2L vehicles much earlier than the said time frame. At present, our customers can select vehicles of their use from 10+ options and very soon 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 electric vehicle companies will directly benefit the customers and environment. As we always promote that every family’s second vehicle must be an electric vehicle. The Government and innovative manufacturers like us are opting for every possible step to provide a sustainable and carbon footprint-free mobility solution, and now it’s time for the customers to take benefit of this.”

Tarun Mehta, CEO and Co-founder, Ather Energy said “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 electric vehicles. 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.”

Shailesh Chandra, President, Passenger Vehicle Business Unit, 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 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.”

Nagesh Basavanhalli, MD & Group CEO, Greaves Cotton and Director, Ampere Vehicles said “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 petrol pumps, the government is enhancing the #EV infrastructure in a big way. At Ampere Electric, we’re thrilled to see such initiatives to address charging infrastructure concerns. Adding more relevance with the exemptions and subsidies as announced, Gujarat Government is painting a bright future for clean tech mobility and last-mile connectivity.”

Uday Narang, Chairman, Omega Seiki Mobility said “The revised EV policy by the Gujarat Govt. is a phenomenal move. This will help in faster adoption of EV’s in the state. The expenditure of Rs 870 crore over the next 4 years will help EVs embellishment in the state of Gujarat. We at Omega Seiki Mobility support this initiative and feel it’s a major step in building up the EV’s Ecosystem. The announcements lately by the centre on FAME II policy followed by the state Govt. giving subsidy will provide much-needed boost to the EV’s and will notably make India a significant player in the EV industry. We have already deployed our products in the State and will pass on the benefit to the customer”

Jeetender Sharma, MD & Founder of Okinawa Autotech said “We are encouraged to see that more Indian states are stepping up their efforts to accelerate the adoption of electric vehicles 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.With the state’s goal of having 2 lakh electric vehicles on the road in the next four years, we, at Okinawa, are certain to expand our presence and foothold in the region with this further impetus. We share the government’s goal of reaching every region of the country with a diverse product range so that people have choices especially after the subsidy hike introduced in the FAME II policy last week”.

Rahul Sharma, Founder, Revolt Motors said, “The Gujarat Government’s ‘Gujarat Electric Vehicle Policy 2021’ is yet another leap towards building up EV ecosystem in the country. The additional subsidy being offered by the state is a major incentive for local manufacturers and will also encourage us to further expand into newer markets. We have already received an overwhelming response from our consumers as we had re-opened bookings for our electric motorcycles last week and the introduction of such policies by various states will further boost the adoption of EVs in the country.”

With this initiative, the government hopes to make the state of Gujarat one of the least polluting in the country. Huge adoption of EVs looks likely with these benefits especially when the price gap between an ICE as well as EV seems to have been negated with this. Likely added benefits like reserved parking spots, free parking in government places and more could be the icing on the cake. We are waiting to hear EV policies of other state governments. Keep your eyes peeled on this page!

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