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Gujarat State Government Subsidy on Electric Vehicles : All You Need To Know

The Gujarat EV Policy aims to encourage automakers' production of more EVs. Let us look at how the Gujarat State Government has subsidised EVs through different policies and incentives.
Somsubhra ChowdhurySomsubhra Chowdhury24-Dec-22 10:20 AM
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Gujarat State Government Subsidy on Electric Vehicles : All You Need To Know


India's electric vehicle market is expanding quickly. The scope of the Indian EV industry is growing as a result of the introduction of fresh EVs, which are mostly being pushed by two- and three-wheeler manufacturers. On the contrary, the market has expanded significantly due to several incentives and subsidy-driven EV policies implemented by different state governments.

The Gujarat EV Policy seeks to provide an all-encompassing answer to the problems preventing the proliferation of EVs. On the one hand, it attempts to give the clients incentives and discounts to increase demand. By incentivizing the infrastructure producers, it seeks to create strong EV charge stations. Additionally, the Gujarat EV Policy aims to encourage automakers' production of more EVs. 

Let us look at how the Gujarat State Government has subsidised EVs through different policies and incentives.


What Comes Under The Policy?


The Gujarat EV Policy will be in effect for five years, from July 1, 2021, to June 30, 2025. The state's automobile industry should migrate to e - mobility, according to the main goal of the Gujarat EV strategy. Gujarat is intended to become a center for producing EVs and related machinery. Through the EV strategy, the state government hopes to promote start-ups and invest in the electric transportation industry and related support industries like analytics and information systems. By lowering pollution levels in the state, it also intends to enhance environmental quality.

A subsidy of up to Rs. 20000 for two-wheelers, Rs. 50000 for three-wheelers, and Rs. 1.5 lakh for four-wheelers was set aside under the Gujarat EV Policy. The Gujarat EV Policy intends to fund 20,000 EV four-wheelers, 70,000 EV three-wheelers, and 110,000 two-wheelers throughout the four-year operational term. A maximum of 200,000 electric vehicles are designed to be supported under the strategy in the state.


Targets


The Gujarat EV Policy plans to establish a robust EV charging infrastructure in addition to electric automobiles. To do this, the policy stipulated a 25% capital subsidy on gear and technology for the responsibility of business Charging infrastructure for two-wheelers, three-wheelers, and four-wheelers, up to a maximum of Rs. 10 lakh. First, 250 commercial, public EV charging stations will use this.

Additionally, for the duration of the policy, the Gujarati government declared a 100% exemption from power duty for EV charging stations. Additionally, it was announced that, except for the farm connection, State Distribution Licensees (DisComs) would permit the charging of EVs from an existing consumer connection at the current rate.



We will look at how the subsidies impact the purchasing cost of the EVs. Lets take Ather 450X for an example. The cost of Ather 450X is around 1.77Lakh (ex-showroom, Gujarat). After subsidy, the cost drops down to Rs. 1.57Lakh, with a subsidy of Rs. 20,000.


How does it impact the Prospective buyers?


Achieving cost equality among EVs and ICE vehicles depends in large part on subsidies. To overcome the initial pricing hurdles and increase customer interest in electric automobiles, the subsidies have to be maintained in the near future. Economies of scale may reduce EV pricing to the point where subsidies are no longer required as EV sales increase and battery technology develops. Understanding how subsidies and EV adoption interact will speed up India's transition to electric transportation.

In the state of Gujarat, these subsidies are directly impacting the sales growth of the EV market. The policy is highly generous to the prospective buyers and encourages them to adopt EV technology efficiently. Until July of this year, the sale of electric cars (EVs) in the state climbed by 200% over the same period last year. In the first half of 2022, the number of electric car sales exceeded 30,000, up from 9,917 in the initial half of 2021. The progress is eye-catching and promising for the coming future.


Highlights of the Scheme


  • Establishing charging stations at fuel pumps will be permitted.
  • Facilities for housing and business will soon have charging stations.
  • Within four years, gasoline worth five crore rupees would be saved by e-vehicles registered at the Gujarat RTO by being free from the registration charge.
  • At least 6 lakh tonnes of CO2 emissions will be cut.
  • Through DBT, subsidies of up to Rs. 20,000 for two-wheelers, Rs. 50,000 for three-wheelers, and up to Rs. 1.5 lakh for four-wheelers would be instantly deposited to bank accounts.

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