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Gujarat Makes Evs More Affordable Slashes Road Tax To 1 Till March 2026
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Priti Burud

Published on 03:28 AM, 24 Apr 2025 3 min

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Gujarat Makes EVs More Affordable: Slashes Road Tax to 1% Till March 2026

And in Gujarat, electric vehicle users now save a plate by 5%, thanks to the government's cut in road taxes. The reduction, effective till March 31, 2026, will help resuscitate reticent EV sales in the state and spur sustainable commutation. The policy, however, is only applicable to pure EVs; thus doesn't cover hybrid vehicles.

The state government of Gujarat has reduced the road tax on all new electric vehicles (EVs) from 18 April 2025 to 31 March 2026 to bring incentives for increasing sales of EVs and the consistent development of clean mobility.

The tax credit is a complete five percent reduction from the previous tax benefit. It now stands at a mere 1 percent road tax from the previously charged 6 percent under the scheme. Indeed, these savings will attract potential buyers of EVs into action now.

Reason Behind Gujarat's EV Tax Cuts

This 5% road tax incentive was mooted in the Gujarat state budget for fiscal 2025-2026. Finance Minister Shri Kanubhai Desai cited urgency in the adoption of EVs on environmental grounds as the major argument in favor of the measure.

Interestingly, EV sales in Gujarat did take a deep plunge in 2024, down 43% compared to the previous year. The numbers nose-dived from 88,614 in 2023 to 50,010 in 2024.

The downturn in sales can largely be attributed to the withdrawal of the previous state EV subsidies, which had offered buyers incentives of up to ₹1.5 lakh on four-wheelers that cost less than ₹15 lakh.

What This Means for EV Buyers

The new road tax cut applies to all EVs irrespective of their price, but the actual gain differs. For example, ₹15 lakh MG Windsor EV buyers had an earlier subsidy of ₹1.5 lakh. Now same buyers will only save ₹45,000- this is much lower. But those buying higher-end EVs over ₹15 lakh would profit even more under the current tax rebates, since they were earlier excluded from subsidies.

Who Can Avail and How

The procedure for availing this scheme has to be completed while registering the new EV by customers through the Vahan 4.0 Portal. The online registration streamlines the procedure as there is no manual intervention to visit the RTO. Please note that this incentive is only for pure EVs; hence, hybrids are excluded.

With this move, Gujarat might be able to propel its automotive market towards greener horizons and may just provide the push required to get a lot more electric cars on-road.

Also Read:

  1. Hyundai Motors to unveil its next-generation hybrid system

  2. Skoda Kylaq Demand Soars: Waiting Periods Stretch Up to 5 Month

  3. Skoda Enyaq EV India Launch Stalled Amid Policy and Tariff Uncertainty

Priti Burud

Content Writer

As a passionate content writer, Priti specializes in covering the latest trends in the automotive industry. Priti avidly explores the mobility sector, staying updated on technological advancements. Her enthusiasm for cars drives me to research extensively, brainstorm ideas, and craft engaging content that showcases the latest developments worldwide. Whether it's unveiling cutting-edge technology or analyzing industry shifts, she is dedicated to providing informative and insightful content for automotive enthusiasts and tech aficionados alike.

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