Gujarat EV Policy

Gujarat has been a pioneering leader in the solar industry. In our earlier article, we looked at how Gujarat’s farsighted policies helped the state become a leader in the Indian solar sector. In this article, we explore how Gujarat is aiming to replicate its success in Solar in the Electric Vehicle (EV) Industry.


On 23rd June 2021, the Government of Gujarat released its Electric Vehicle Policy – 2021. This policy laid out the roadmap for catalysing the growth of the EV industry in Gujarat for the 4-year period – 2021 to 2025, with a total outlay of Rs. 870 Crores .

The Gujarat State EV Policy-2021 has four-fold objectives.

  • Increase in the use of e-vehicles in the State during the 4-year period.
  • Make Gujarat a hub for e-vehicles and various materials related to it.
  • Encourage young startups and investors in the field of electric mobility.
  • Control air pollution and keep environment safe.


The policy aims to support the purchase of Two Lakh Vehicles during this 4-year period. Of the 2 Lakh vehicle target, more than 50% of vehicles is proposed to come from 2-wheelers and the rest from 3-Wheelers and 4-Wheelers. The detailed split can be seen below.


The Gujarat State EV Policy offers incentives to stakeholders both on supply and demand side, with a focus on 3 key areas of the EV value chain.

  • Buyers of EV (Demand booster)
  • Charging infrastructure (Demand enabler)
  • Subsidies for manufacturers (Supply booster)

1. For Buyers of EV

The demand incentives from the State are as follows. These incentives shall be over and above any subsidies that are available from the Central Government through its promotional schemes and policies.

Vehicle Segment Battery Capacity (kWh) State Subsidy Amount (Rs) Maximum ex‐factory price to avail incentive (Rs)
2-Wheeler 2 Rs. 10,000/‐ per kWh Rs. 1.5 lakhs
3-Wheeler 5 Rs. 10,000/‐ per kWh Rs. 5 lakhs
4-Wheeler 15 Rs. 10,000/‐ per kWh Rs.15 lakhs

2. Charging Infrastructure

According to the state government, there were 278 e-vehicle charging stations in Gujarat at the time of releasing the policy. The state’s policy targets adding another 250 commercial public EV charging stations by providing 25% capital subsidy on equipment/machinery (up to Rs. 10 Lakhs per station).

Petrol pumps will be given approval for establishing charging stations and charging facilities will come up at housing and commercial infrastructures.

3. Manufacturing of EV and their components

In order to encourage manufacturing of Electric Vehicles and their components in Gujarat, the state government extended the Gujarat Industry Policy -2020.


Gujarat is home to not only some of India’s largest oil refineries, but also to high levels of renewable energy installed capacity. The state has a key role in achieving India’s transition to a low-carbon future. With a very progressive Electric Vehicle (EV) policy, the state is expected to replicate the significant success it had in solar to low-carbon mobility.

The Gujarat state EV Policy-2021 can be downloaded here .

About Smarter E India

With three parallel energy exhibitions, The smarter E India is India’s innovation hub for the new energy world. It presents cross-sector energy solutions and technologies and reflects the interaction of the solar, energy storage and electric mobility industry. The smarter E India addresses all the key areas along the value chain and brings together local experts and international stakeholders in the energy future. The smarter E India brings together the renowned Intersolar India, ees India and Power2Drive India.

The smarter E India / Intersolar India 2022, is scheduled from 7–9, December at Gandhinagar, Gujarat.

Register here

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