Electric Vehicle Sales Surge in Gujarat Amid Subsidies and Tax Benefits

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Gandhinagar — Electric vehicle sales are rising rapidly in Gujarat as state subsidies, tax benefits and expanding charging infrastructure encourage more consumers to move away from gasoline-powered vehicles.

The state recorded its highest-ever EV sales during the previous financial year, while registrations continued to climb during the first quarter of this year.

Growing environmental awareness and the lower operating costs of electric vehicles have contributed to increased demand for both two-wheelers and passenger cars. Buyers also cited reduced registration fees and the ability to charge vehicles using residential solar power as key advantages.

Manit Shah, who recently purchased an electric vehicle, said environmental and financial considerations influenced his decision.

“Firstly, EVs generate less pollution. With solar panels now installed in many Indian homes, there is an added benefit: EVs are cost-efficient for consumers and effective in protecting nature.”

Another buyer, Pankit Shah, said lower government fees make electric vehicles more affordable.

“RTO registration fees for EVs are lower, making the vehicle more affordable. Since they run on electric charging, EVs offer significant advantages compared to petrol-powered vehicles.”

The Gujarat government, led by Chief Minister Bhupendra Patel, has made green initiatives a priority in its 2026-27 budget, with an emphasis on electric mobility and clean energy.

Tax exemptions, subsidies and the expansion of public charging infrastructure have helped generate greater interest in EVs, particularly among middle-class consumers.

Pranav Shah, head of the Federation of Automobile Dealers Associations, said electric car buyers can save about Rs 50,000 in registration fees compared with purchasers of conventional vehicles.

“Registration fees for standard vehicles can go up to ₹60,000, whereas for electric vehicles, the fee is merely around ₹10,000—meaning an average saving of ₹50,000 for EV cars. For two-wheelers, instead of the usual ₹5,000–₹6,000, only a nominal token fee is charged.”

About 5,545 electric vehicles were registered in Gujarat last year, compared with 8,577 during the first quarter of this year, according to figures cited by the association.

Shah said inquiries and sales increased sharply following Prime Minister Narendra Modi’s call to reduce the country’s consumption of petroleum products.

“Regarding sales, Gujarat recorded 5,545 registrations throughout the previous year, whereas 8,577 registrations took place in the first quarter of this year—marking an overall increase of approximately 55 percent,” he said. (Source: IANS)