Gujarat Plans Zero RTO Tax and Higher EV Subsidies Under New Electric Vehicle Policy
The proposed EV policy could waive RTO tax on electric vehicles, making EV ownership more affordable for buyers.
The proposed strategy plans to double purchase subsidies and expand charging infrastructure across new residential and commercial developments.
The Gujarat government is working on a comprehensive new electric vehicle (EV) policy aimed at accelerating the adoption of clean mobility across the state. According to reports, discussions with industry stakeholders have already begun and the draft policy is expected to focus on boosting EV sales, expanding charging infrastructure and encouraging local manufacturing.
The move comes as Gujarat looks to strengthen its position as one of India's leading EV markets while reducing dependence on fossil fuels (petrol and diesel). The proposed policy is expected to build upon existing EV initiatives and offer stronger incentives for both consumers and manufacturers.
One of the biggest highlights under consideration is a complete waiver of RTO tax on electric vehicles. Currently, Gujarat offers reduced motor vehicle tax benefits for EV buyers, but the proposed policy could eliminate the tax burden entirely, making electric vehicles significantly more affordable.
The proposed exemption is expected to apply across multiple EV categories, including electric two-wheelers, passenger cars, commercial vehicles and heavy-duty transport vehicles. If approved, the move could substantially lower the on-road cost of EVs and encourage faster adoption among consumers.
Apart from tax relief, the government is reportedly evaluating enhanced subsidy support for EV buyers. The objective is to make electric mobility more financially attractive while offsetting the higher upfront costs typically associated with EV ownership.
Industry stakeholders have also suggested expanding incentives across different vehicle categories to ensure wider adoption. While the final subsidy structure has not yet been announced, the upcoming policy is expected to offer stronger financial support than the current framework.
A key component of the proposed EV policy is the expansion of charging infrastructure across Gujarat. The state government plans to accelerate the installation of public charging stations in urban centres, highways, and key transport corridors to address range anxiety and improve EV convenience.
Improved charging availability is expected to play a crucial role in supporting the state's long-term EV adoption goals, particularly as demand for electric passenger and commercial vehicles continues to grow.
If implemented, the new EV policy could make Gujarat one of the most EV-friendly states in India. Lower acquisition costs through zero RTO tax, enhanced subsidies, and improved charging infrastructure would significantly improve the ownership experience for prospective EV buyers.
Apart from encouraging EV adoption, the proposed policy is also expected to focus on attracting investments in EV manufacturing, battery production, and related infrastructure. The initiative could help strengthen Gujarat's position as a major hub for electric mobility and clean-energy industries.
While the policy is still under development and official details are yet to be announced, the proposed measures indicate Gujarat's intention to accelerate the transition toward cleaner transportation and strengthen the state's role in India's growing electric mobility ecosystem.
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