Gujarat’s 2025 Electric Vehicle Subsidy Scheme is driving eco-friendly transportation with incentives like Rs 12,000 for e-scooters and Rs 48,000 for e-rickshaws for students, alongside a 5% road tax cut for all EVs until March 2026. Aimed at reducing pollution, the scheme supports 10,000 vehicles and charging infrastructure, positioning Gujarat as a leader in sustainable mobility.
Gujarat Accelerates Toward a Sustainable Future with EV Subsidies
The Gujarat government has rolled out an ambitious Electric Vehicle Subsidy Scheme in 2025, sparking widespread enthusiasm among students, commuters, and environmentalists. Launched as part of broader development initiatives, the scheme targets students in classes 9 to 12, offering Rs 12,000 subsidies for e-scooters and Rs 48,000 for e-rickshaws. Approximately 10,000 electric vehicles are set to benefit, making eco-friendly transport more accessible for young commuters.
Complementing this, the state has slashed road tax by 5% for all electric vehicles, reducing the tax rate from 6% to 1% until March 31, 2026. Announced during the 2025-2026 state budget by Finance Minister Kanubhai Desai, this move aims to counter the 43% decline in EV sales from 88,614 units in 2023 to 50,010 in 2024, partly attributed to the earlier removal of subsidies offering up to Rs 1.5 lakh for four-wheelers priced below Rs 15 lakh. For instance, a vehicle like the MG Windsor, priced at Rs 15 lakh, now benefits from a Rs 45,000 tax rebate, making EVs more affordable across price segments.
The Gujarat Two Wheeler Scheme, part of five development plans celebrating Prime Minister Narendra Modi’s 70th birthday, emphasizes sustainable mobility. Beyond subsidies, the government is investing Rs 5 lakh to establish charging stations, addressing a critical barrier to EV adoption. This infrastructure push aligns with the state’s vision to reduce pollution and establish Gujarat as a hub for green technology.
To avail these benefits, buyers must register their EVs through the Vahan 4.0 portal. However, the temporary nature of the tax cut has sparked discussions, with experts urging the state to consider long-term incentives to sustain EV growth. The scheme’s focus on students also aims to cultivate a culture of environmental consciousness among the youth, encouraging them to embrace battery-powered vehicles.
Nationally, Gujarat’s efforts complement the PM E-Drive scheme, which allocates Rs 500 crore for e-truck subsidies at Rs 5,000 per kWh of battery capacity. However, this requires scrapping a conventional truck of equal or higher tonnage, a condition that has raised concerns about implementation timelines, with only nine months left until the scheme’s expiration.
Gujarat’s proactive measures are already generating buzz, with stakeholders hopeful that the combination of subsidies, tax relief, and infrastructure development will reverse the EV sales slump and position the state as a leader in India’s green mobility revolution.
Disclaimer: This article is based on information sourced from recent web reports, including government announcements, news outlets, and official statements. The data reflects developments as of June 2025 and is subject to change. Readers are advised to verify details through official channels like the Gujarat government’s electric vehicle scheme website or the Vahan 4.0 portal for accurate and updated information.