Gujarat Is Expected to Have The Lowest Electric Car Pricing in India

Gujarat Is Expected to Have The Lowest Electric Car Pricing in India

The adoption of electric automobiles (EVs) in India is steadily increasing, and the Gujarat government has taken yet another move to accelerate EV adoption in the state. The Gujarat State Electrical Car Policy 2021 has revealed a four-year plan with a total expenditure of Rs 870 crore to be used as a subsidy/incentive for brand spanking new purchasers of electrical automobiles across sectors, as well as for those investing in the development of EV infrastructure.

Gujarat Chief Minister Vijay Rupani presented the state’s EV policy at a press conference earlier today, promising concrete advantages to individuals who buy an electric two-wheeler, three-wheeler, or four-wheeler, as well as those who set up charging stations around the state. These advantages are in addition to those provided under the national FAME-II subsidy program. Gujarat believes that this will save the state up to Rs 5 crore in fuel costs and cut CO2 emissions by six lakh tonnes over the next four years.

What are the advantages of Gujarat’s EV Policy 2021 for buyers?

The Gujarat government will give subsidies to buyers of three types of electric vehicles: two-wheelers, three-wheelers, and four-wheelers, under its policy (which would be in effect until July 1, 2025). The strategy aims to subsidize the purchase of 200,000 electric vehicles, including 110,000 electric two-wheelers, 70,000 electric three-wheelers, and 20,000 electric four-wheelers.
The greatest incentive provided by any state in India is Rs 10,000 per kWh of battery capacity. Still, the overall subsidy is capped at Rs 20,000 for electric scooters and motorcycles, Rs 50,000 for e-rickshaws, and Rs 1.5 lakh for electric vehicles and SUVs. Once the vehicle’s purchase document has been validated, the state transportation agency will credit these incentives straight to the buyer’s bank account.

Gujarat New EV Policy 2021

It’s worth noting that EVs that qualify for the subsidy must meet a certain pricing barrier. The ex-factory price of an e-two-wheeler must exceed Rs 1.5 lakh to be eligible for this incentive. Similarly, the maximum amount qualifying for e-rickshaws is Rs 5 lakh, while the maximum amount eligible for electric automobiles is Rs 15 lakh. The incentive is not just available to business customers but also to individuals purchasing automobiles for personal use.

Most electric cars currently on the market (including the Hyundai Kona Electric, MG ZS EV, Mercedes-Benz EQC, and Jaguar I-Pace) will be ineligible for the Gujarat state subsidy due to the price restriction. The Tata Nexon EV, which starts at Rs 13.99 lakh, would profit from this policy since it will be eligible for the entire Rs 1.5 lakh subsidy, bringing its purchase price to nearly the same level as in Delhi.

In the case of electric two-wheelers, all-electric motorcycles and scooters equipped with a 2 kWh lithium-ion battery are eligible for the full Rs 20,000 incentive. The Ather 450 Plus and Ather 450X are expected to reduce in price to Rs 1.07 lakh and Rs 1.27 lakh, respectively, while models like the TVS iQube and Revolt RV400 are expected to cost far under Rs 1 lakh. The TVS iQube’s price in Gujarat (when it’s introduced there in the coming months) might be closer to Rs 90,000, but the Revolt RV400’s final price could be as low as Rs 87,000, thanks to a Rs 20,000 bonus. Other electric two-wheeler manufacturers are also expected to announce increased prices for their models in Gujarat.

To sweeten the bargain even further, the Gujarat government would eliminate the registration cost for electric car owners, making them even more inexpensive.

Gujarat New EV Policy 2021 Charging Stations

What are the benefits of Gujarat EV Coverage 2021 for charging infrastructure builders?

Gujarat now has a total of 278 charging stations around the state, with plans to install 250 more stations with this coverage, bringing the total to 528 charging stations. To that end, the federal government has said that petrol stations across the state would be permitted to install EV charging stations on their premises.

Those that install the first 250 commercial public EV charging stations will be eligible for a 25% equipment/machinery capital subsidy (limited to Rs 10 lakh per station). In addition, throughout the length of the scheme, Gujarat would exclude EV charging stations from paying power taxes. More information on how developers will be able to take advantage of this incentive will be released in the future.

All housing and business enterprises must also provide a “No Objection Certificate” (NOC) to members who wish to construct charging stations and assign dedicated parking spots, according to the policy.

Leave a Reply