Gujarat was the last state to announce a new Gujarat electric vehicle (EV) policy in 2021 to encourage the adoption of green vehicles.
The announcement will make electric vehicles attractive to state residents by adding new benefits after the overhaul. In the FAME II directive announced earlier this month.
Under Gujarat Electric vehicles policy 2021
Gujarat Government will reward up to 10,000 rupees per kilowatt-hour for electric vehicles
As part of the new electric vehicle policy, the Gujarat government will provide an incentive of up to 10,000 rupees per kilowatt-hour for electric vehicles.
The maximum ex-factory price for applying for an exemption for two-wheeled electric vehicles is 150,000 rupees, and the maximum for electric tricycles is 500,000 rupees. Electric four-wheelers (private and commercial) cost 1.5 Lacs rupees.
According to the plan, the government’s goal is to produce 2,000,000 electric vehicles, including 1,10, 000 electric vehicles; 70,000 electric vehicles and 20,000 electric vehicles.
More subsidies for all Vehicles Eligible for FAME II
The government stated that all vehicles that meet the FAME II conditions are eligible for a subsidy cap of 40% of the car sales price, and the maximum subsidy cap for four-wheel electric vehicles is Rs.1.50 Lacs.
The L5 is 50,000 rupees, and the electric two-wheeler is 20,000 rupees. The award will be higher than the FAME II appropriation, which reduces the cost of two-wheeled electric bicycles (up to 2kW) by nearly 50,000 rupees.
The grant is awarded after the vehicle purchase document is verified by the Direct Service Transfer (DBT) of the U.S. Department of Transportation
Benefits for public EV charging stations
In addition, the government also announced that public commercial electric vehicle charging stations for two-wheel, three-wheel and four-wheel vehicles will receive a 25% capital goods/machinery subsidy (each charging station is limited to 1 million) for the first batch of 250 Commercial charging station.
All households and companies must present a No Objection Certificate (NOC) to members who want to install charging stations with designated parking spaces.
What are the benefits for the buyers?
According to Gujarat’s electric vehicle policy 2021, the Gujarat government will provide subsidies to buyers of three types of electric vehicles: two, three, and four.
The directive aims to subsidize the purchase of a total of 200,000 electric vehicles, including 110,000 electric vehicles, 70,000 electric vehicles, and 20,000 electric vehicles.
The reward of 10,000 rupees per kilowatt-hour battery capacity is the highest subsidy provided by all states in India, but the total subsidy is capped at 20,000 rupees for electric scooters and motorcycles, 50,000 rupees for electric vehicles, and 150,000 rupees for cars, electric vehicles and electric vehicles.
After the vehicle purchase documents are verified, these benefits are directly credited to the buyer’s bank account by the Ministry of Transport.
Do notice that there’s a rate threshold for EVs which are eligible for this subsidy. To qualify for this incentive, the ex-manufacturing facility rate of an e-two-wheeler can’t exceed Rs 1.5 lakh.
Similarly, the cap for e-rickshaws to be eligible is Rs five lakh, and for electric powered cars, it’s Rs 15 lakh. Notably, the subsidy is likewise being supplied to the ones shopping for the automobiles for personal use and isn’t restrained to business buyers.
The price cap means that most electric vehicles sold today (including Hyundai Kona Electric, MG ZS EV, Mercedes-Benz EQC and Jaguar IPace) are not eligible for Gujarat government subsidies.
However, the cost of Tata Nexon EV is 1.399 million rupees and you can benefit from this policy because you are eligible for a full grant of 150,000 from the offer, which reduces your purchase price to roughly the same as Delhi’s price.
In the case of electric two-wheelers, all electric bicycles and scooters equipped with a 2 kWh lithium-ion battery will receive a full compensation of 20,000 rupees.
The prices of Ather 450 Plus and 450X are expected to drop to 1.07 rupees and 1.27 rupees, respectively, while models such as TVS iQube and Revolt RV400 will be well below 100,000 rupees.
If the offer is 20,000 rupees, the TVS iQube price in Gujarat (if it appears in the next few months) will be close to 90,000 rupees, while the final price of Revolt RV400 may be as low as 87,000 rupees.
Other electric two-wheeler manufacturers may also announce price changes for their models in Gujarat.
In order to make this transaction more attractive, the Gujarat government will also waive registration fees for electric car buyers, so that their prices will be greatly reduced.
What are the benefits of charging infrastructure developers?
Gujarat currently has 278 charging points across the state. The policy aims to add another 250 charging points, bringing the number of charging points to 528.
To this end, the government stated that it will allow the use of fuel pumps. Install electric vehicle charging stations in facilities across the country.
Those who install the first 250 commercial public electric vehicle charging stations are eligible for a 25% equipment/machinery subsidy (each station is limited to 1 million).
More detailed information on how developers can benefit from this grant will be released in the future.
The guidelines also require all residential and commercial organizations to issue a no-objection certificate (NOC) to participants who want to install charging stations and allocate designated parking spaces.
What does the EV industry have to say?
In response to the Gujarat government’s statement, Sohinder Gill, General Manager of the Electric Vehicle Manufacturers Association (SMEV), said: “We thank the Gujarat government for announcing a promising and ambitious electric vehicle policy.
Gujarat is an electric vehicle manufacturing center that can promote the state. The rapid popularity of electric vehicles. We are very happy to be part of this journey and will do our best to achieve the public administration goals under this policy.
Infrastructure that can solve the problem of autonomous driving, especially for those who want to buy four-wheel electric vehicles people.
Gil, who is also the CEO of Hero Electric, added that the company expects sales of its two low-speed bikes in the state to “exponentially increase.”
Tarun Mehta, co-founder and CEO of Ather Energy, also welcomed the Gujarat government’s new electric vehicle policy.
“The new electric vehicle policy introduced by the Gujarat government is a big step forward and will have a significant impact on the pace of adoption of electric vehicles in the state.
Gujarat has been taking the lead in promoting green travel through various policies and gradual measures, including the first In Kaivadia, a city that uses all-electric vehicles, incentives will make cars more affordable and more accessible to consumers, and the state’s charging infrastructure is improving.
“More progressive policies will undoubtedly accelerate the popularity of electric vehicles in the country. ,” Mehta said.
In addition to Gill’s testimony, Hero Electric’s managing director Naveen Munjal stated: “Gujarat’s revised electric vehicle policy after the recent revision of the FAME core policy is an excellent move that will further narrow the gap and reduce the number of conversions.
Electric vehicles are a Attractive option. Thanks to this policy, the price of Hero electric vehicles will continue to fall. Compared to the whole country, they are the cheapest in Gujarat.
Charging stations will help build much-needed charging infrastructure and save consumers In terms of battery life.
As we at Hero Electric continue to expand our business, set up charging stations and retrain mechanics to create an electric vehicle ecosystem, additional subsidies provided by the state government through similar policies will help develop electric vehicles and transform the industry into A cleaner and more sustainable industry environment. Transportation.
When commenting on the electric vehicle policy of Gujarat, Shailesh Chandra, chairman of Tata Motors, said about the electric vehicle category. This clearly shows the government’s firm commitment. “Creating a cleaner environment and a sustainable future for the country.
In addition, expanding support for charging infrastructure will accelerate the development of the ecosystem and provide more convenience for electric vehicle buyers. We congratulate the Gujarat government for implementing such progressive policies. .
Mahindra Electric Mobility Ltd CEO Mahesh Babu responded enthusiastically to the announcement of the directive, which may boost the sale of Treo electric tricycles in the state.
We are grateful to the Gujarat government for announcing a progressive and comprehensive Gujarat Electric Vehicle Policy 2021. The cost of 870 billion rupees in the next four years will help electric vehicles flourish in Gujarat.