EV Subsidy in Gujarat 2026: Road Tax, New Policy & What You Get

Gujarat is in between EV policies, and that makes it the hardest of the five states in this series to pin down. Its EV Policy 2021 once paid one of the more generous subsidies in the country, ₹10,000 per kWh of battery capacity, but those payments ended around 2024. The state then cut motor vehicle tax on EVs from the standard 6 per cent to 1 per cent, a concession that was valid until 31 March 2026. Since then, there has been no confirmed state benefit for private EV buyers.

The next step is the Gujarat Green Mobility Policy 2026, announced in August 2026. It proposes a full exemption from motor vehicle tax and registration fees for EVs, an extra incentive for women buyers and a payment for scrapping an old vehicle. It does not include a direct purchase subsidy. An effective date for these benefits has not been announced, so treat them as proposals until your RTO applies them.

What you can count on today is the central PM E-DRIVE incentive, worth up to ₹5,000 on an electric two-wheeler. Electric cars get nothing from the Centre, so a car buyer in Gujarat currently pays the full road tax.

This guide explains what applies now, what the new policy proposes, what you save on popular EVs under each scenario and how benefits are claimed. For a comparison with other states, see our guide to state-wise EV subsidy in India.

Gujarat EV policy at a glance

What EV buyers get in Gujarat right now

The answer depends on the vehicle.

Electric two-wheelers get the central PM E-DRIVE incentive: ₹2,500 per kWh, up to ₹5,000, or 15 per cent of the ex-factory price if that is lower. The scooter's ex-factory price must be ₹1.5 lakh or less. The dealer deducts this at the time of sale.

Electric cars get no central subsidy and, at present, no state subsidy. Since the 1 per cent concession was due to lapse on 31 March 2026, most buyers have been charged Gujarat's standard lump-sum motor vehicle tax of 6 per cent of the vehicle's cost. Because rates have been applied unevenly since April, ask the dealer for an itemised on-road quote; the motor vehicle tax line shows which rate your RTO is charging.

Electric three-wheelers in the larger L5 category no longer get the central incentive, which closed in December 2025. E-rickshaws and e-carts still qualify under PM E-DRIVE.

What the Gujarat Green Mobility Policy 2026 proposes

The new policy covers EVs alongside other green vehicles, with a target of 30 per cent green vehicles among new registrations by 2031. These are the measures that matter to buyers:

The scrappage incentive is meant for vehicles registered in Gujarat and owned by state residents, and is linked to the Certificate of Deposit issued by a registered scrapping centre. Retrofit support will need an approved kit and certification by an authorised testing agency. The policy also sets future mandates: certain commercial categories, such as three-wheelers and taxis, are to move to green-only registration from 2028, with two-wheelers and light goods vehicles to follow.

Road tax in Gujarat: how much is at stake

Gujarat charges new private cars and two-wheelers a one-time motor vehicle tax of 6 per cent of the vehicle's cost. That is lower than in Maharashtra, Uttar Pradesh or Odisha, so the waiver, when it applies, is worth less here than in those states. On a mid-size electric car, it still runs to around ₹1 lakh.

Separately, from October 2026, Gujarat offers up to 50 per cent off motor vehicle tax on a new vehicle registered against a scrapping certificate for a very old vehicle, mainly BS-I or older. This is not EV-specific, and the certificates must be issued by 31 March 2027.

Popular EVs and how much you save in Gujarat

These are rough estimates for popular variants under two scenarios: what applies today, and what you would save if the proposed tax waiver comes into force. The tax figures use Gujarat's 6 per cent rate on approximate ex-showroom bands; vehicle prices themselves are left out because they change too often to stay accurate.

Electric two-wheelers

Women buyers would get a further ₹5,000 under the new policy, and scrapping an old two-wheeler would add ₹10,000.

Electric cars

Under the proposed policy, women buyers would get ₹10,000 more, and scrapping an old car would add ₹50,000.

Who is eligible for EV benefits in Gujarat

Today

• Central incentive only. Electric two-wheelers that are certified under PM E-DRIVE and have an ex-factory price of ₹1.5 lakh or less qualify.
• Aadhaar. You need Aadhaar for the PM E-DRIVE e-voucher, and the scheme supports one EV of a category per individual.

• New vehicles. The incentive applies only at first sale and registration.

   

Under the proposed Green Mobility Policy 2026

• Registration in Gujarat. The tax and fee waiver applies to eligible vehicles registered in Gujarat during the policy period.
• Scrappage. The old vehicle must be BS-IV or older, registered in Gujarat and owned by a state resident, and you need the Certificate of Deposit.
• Retrofits. The conversion kit must be approved, and the converted vehicle certified by an authorised agency.

• No price cap or made-in-Gujarat rule has been announced for the waiver.

   

How to claim EV benefits in Gujarat

At present, there is nothing to apply for at the state level, online or offline, because Gujarat has no active purchase subsidy. Tax concessions in Gujarat have always been applied automatically at registration, so when the new waiver takes effect, it should appear as zero motor vehicle tax on your registration without a separate claim.

1. Confirm the variant qualifies for PM E-DRIVE. This applies to electric two-wheelers only.
2. Complete the e-voucher at the dealership. Finish the Aadhaar face authentication and sign the e-voucher; the ₹5,000 is deducted from the price.
3. Ask for an itemised on-road quote. Check the motor vehicle tax line to see whether the standard 6 per cent, a concessional rate or a waiver is being applied.
4. Register the vehicle in Gujarat. The applicable tax is charged or waived at this stage.

5. Watch for the women and scrappage claim process. The state has not yet published how these will be claimed.

    

Recent changes to Gujarat's EV policy

EV subsidy in other states

Neighbouring Maharashtra offers considerably more at present: a 10 per cent purchase subsidy, a full road tax exemption and toll-free expressways. Our guide to EV subsidy in Maharashtra covers the details. For other states:

• EV subsidy in Delhi
• EV subsidy in Uttar Pradesh

• EV subsidy in Odisha

   

You can also compare EV subsidies across states in one place.