A new proposal in the state's 2025 budget announcement has now been approved by the government. Read on for more details
The Gujarat government has slashed the road tax by five per cent on electric vehicle (EV) purchases in the state.
All EV buyers in the state now only need to pay one per cent road tax. The tax relief will be in effect up to March 2026.
Tax benefits can be availed by registering vehicles online on the Vahan 4.0 portal.
The aim is to boost the adoption of EVs in the state, sales of which have spiralled downwards in recent months.
Customers will be entitled to save between Rs 5,000 and Rs 10,000 on purchase of an electric two-wheeler, but it's electric car buyers who will reap the biggest benefits.
EV sales in Gujarat dropped by over 43 per cent in 2024, registering total sales of 50,010 units, in 2023, the same figure stood at 88,614 units.
The Gujarat government's decision to end the EV subsidies (Rs 25,000 for two-wheelers and Rs 1.5 lakh for four-wheelers) was one of the main reasons for the dwinding sales.