Huge Rs 1.5 lakh additional rebate for EV buyers in Gujarat

With the Indian government pushing for the adoptions of electric vehicles in India, many state governments and union territories have announced various benefits. Gujarat government yesterday announced a new EV policy that sure has become one of the most talked-about in the automobile market. Here is why.

Huge Rs 1.5 lakh additional rebate for EV buyers in Gujarat

Gujarat government has announced its newest EV policy for customers choosing electric vehicles over standard cars. The new announcement will add attractive incentives to electric vehicle owners. The new scheme will be additional benefits over the FAME II policy announced by the central government earlier this month.

All the vehicles that are eligible under the FAME-II can avail of the new benefits. The subsidy cap is 40% of the retail price of the vehicle. The cap is set at Rs 1.5 lakh rebate for electric 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 the FAME II subsidy that will make the cost of an electric two-wheeler up to 2kW by almost Rs 50,000.

The new policy states that the Gujarat government will provide an incentive of up to Rs 10,000 per kWh for electric vehicles, which is a massive amount. However, not all vehicles will be considered for the rebate. Only the vehicles that fall under the ex-factory price is Rs 1.5 lakh for electric two-wheelers, Rs 5 lakh for the electric three-wheelers and a staggering Rs 15 lakh for the electric four-wheelers for both commercial and private car buyers are eligible for the incentives.

Huge Rs 1.5 lakh additional rebate for EV buyers in Gujarat

The government is targeting to offer incentives to a total of 2,00,000 electric vehicles in total. Segment-wise, 1,10,000 electric two-wheelers, 70,000 electric three-wheelers and 20,000 electric four-wheelers will get the added benefits.


So how much will a new Tata Nexon EV XM will cost? Well, here is a rough calculation based on the details available on the official site. The ex-showroom price of the Tata Nexon EV XM is Rs 14 lakh in Gujarat. According to the official FAME-II website, the customers get a rebate of Rs 2,79,800. Additionally, according to the new policy by the Gujarat government, the customers will get an additional discount too.

The Tata Nexon EV XM gets a battery 30.2 kWh. So according to the calculations, there should be a discount of Rs 30.2 X 10,000, which comes to be Rs 3,02,000. However, since the maximum benefit is capped at Rs 1.5 lakh for four-wheelers, the Nexon EV will get an additional benefit of Rs 1.5 lakh.

The total benefit including the FAME-II and Gujarat EV policy is Rs 4,29,800. It sure is a massive discount on a car that costs only Rs 14 lakh, ex-showroom.

Public charging station announced too

Apart from the incentives for the residents of the state, the government has also announced that commercial public electric vehicle charging stations for two-wheelers, three-wheelers and four-wheelers will be eligible for the 25 per cent capital subsidy on the equipment/machinery. It is limited to Rs 10 lakh per charging station for the first 250 public commercial EV charging stations.

Before setting up the commercial stations, all the housing and the commercial establishments will need to provide a “No Objection Certificate” (NOC) to its members who wish to install the charging station. The Gujarat government has also announced that it will forego electricity duty on EV charging stations during the policy period.

Industry welcomes the move

The automobile industry including Tata Motors, which is currently leading the electric vehicle segment in India has announced,

“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,

“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 cleantech mobility and last-mile connectivity.”