Indian EV Industry Applauds Gujrat’s New EV Policy

Gujarat Chief Minister Vijay Rupani yesterday updated the state's Electric Vehicle (EV) policy, The new policy brings about a lot of subsidies for 2/3/4 Wheelers as well as for building EV charging infrastructure in the state. Electric vehicle buyers in the state will now be getting subsidies to the tune of Rs 10,000 per kWh on purchase.

Decoding this figure, Electric Two-Wheelers in the State will get up to Rs 20,000 subsidy. Electric three-wheelers or E-Rickshaws will be subsidized by up to Rs 50,000 while electric four-wheelers will get a subsidy of up to Rs. 1.5 lakh. Furthermore, subsidies will be directly transferred to the beneficiary via DBT. These subsidies will cost the state exchequer Rs 870 crore over the period of four years. 

To increase the traction of Electric vehicles amongst buyers, the state government has also exempted all electric vehicles from registration fees lowering the cost of acquisition of an E-Vehicle making it a compelling proposition. 

The government also plans to set up 500 charging stations across the state and will provide subsidies of up to Rs 10 lakh on the construction of such charging facilities. To date, approval for 250 charging stations has been granted, said Rupani.

Mr. Ashish Modani, Vice President & Sector Head - Corporate Ratings, ICRA, remarked: “As per our estimates, the recent amendment by Department of Heavy Industries as well as incentive by GoG could result in price reduction of about Rs. 30,000 per e2W, which is substantial and will help in achieving price parity with conventional 2W. Another key highlight is the possible price reduction of Rs. 1.5-3 lakh for electric car buyer in Gujarat, as FAME II policy do not provide subsidy to electric cars for personal mobility.”

“The state EV policy if successfully implemented could result in over 25% EV penetration in 3W segment, though its target of 110,000 e2W units over four-year period remain modest as compared to over 1.06 million 2W sold in FY2020 itself,” added Mr. Modani.

This move by the State of Gujrat has been appreciated by the EV industry in the country, EV Industry in India still in the nascent stage is quickly gaining pace and supportive policies from different state governments will definitely help the transition from ICE vehicles to EVs. 

We have compiled a list of quotes from the EV industry below.

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors said “We welcome the move by the Gujarat Government, offering incentive support for all categories of electric vehicles. This clearly signals a strong resolve of the government towards cleaner environment and a sustainable future for the country. Also, the support extended towards charging infrastructure will accelerate the ecosystem development and bring greater comfort for EV buyers. We compliment the Gujarat Government for introducing such a progressive policy.”

Sohinder Gill, Director General, Society of Manufacturers of electric vehicles (SMEV) reacting to the Gujrat EV Policy said “We thank the government of Gujarat for announcing a promising and a bold EV policy.  The policy certainly has the potential to make Gujarat an EV hub and would mobilize a rapid adoption of electric vehicles in the state. We are excited to be part of this journey and would put our all efforts towards achieving the state government’s target under the policy.   The policy also gives thrust on the charging infrastructure that would address the issue of range anxiety, especially amongst the  people who want to buy an electric four-wheeler.”

Naveen Munjal, MD, Hero Electric said, “With this policy, the prices of Hero’s EVs will further come down making them the most affordable in the state of Gujarat when compared to pricing across the country. Further, the allocation of funds and capital to setup additional charging stations will help build the much-needed charging infrastructure and address range anxiety of the consumer.”

Yatin Gupte, Chairman and Managing Director, WardWizard Innovations and Mobility Ltd  a Vadodara based EV 2 wheeler manufacturer said “The announcement of 'subsidy and the far-sighted initiative' in the electric vehicle sector by the Government of Gujarat is going to become a landmark development in the entire country. These initiatives of installing charging points, monetary subsidies, free registration of vehicles and making Gujarat a hub for electric vehicle companies will directly benefit the customers and environment.   As we always promote that every family's second vehicle must be an electric vehicle. The Government and innovative manufacturers like us are opting for every possible step to provide a sustainable and carbon footprint-free mobility solution, and now it's time for the customers to take benefit of this.”

Uday Narang, Chairman, Omega Seiki Mobility said "The revised EV policy by the Gujarat Govt. is a phenomenal move. We at Omega Seiki Mobility support this initiative and feel it’s a major step in building up the EV’s Ecosystem. The announcements lately by the centre on FAME II policy followed by the state Govt. giving subsidy will provide much needed boost to the EV’s and will notably make India a significant player in the EV Industry”

“We have already deployed our products in the State and will pass on the benefit to the customer” Added Mr. Narang

Jeetender Sharma, MD & Founder of Okinawa Autotech. Said "We are encouraged to see that more Indian states are stepping up their efforts to accelerate the adoption of electric vehicles across the country by developing new programs and designing effective policies. We, at Okinawa, are certain to expand our presence and foothold in the region with this further impetus. We share the government's goal of reaching every region of the country with a diverse product range so that people have choices especially after the subsidy hike introduced in the FAME II policy last week". 

"The Gujarat Governments 'Gujarat Electric Vehicle Policy 2021' is yet another leap towards building up EV ecosystem in the country. The additional subsidy being offered by the state is a major incentive for local manufacturers and will also encourage us to further expand into newer markets. We have already received an overwhelming response from our consumers as we had re-opened bookings for our electric motorcycles last week and the introduction of such policies by various states will further boost the adoption of EVs in the country", said Rahul Sharma, Founder, Revolt Motors

Dr OP Agarwal, CEO, WRI India, said: "Offering incentives to buyers as well as EV charging infrastructure developers is an excellent approach. This will not only encourage EV uptake but also allay range anxiety concerns as the focus moves to building a robust state-wide charging infrastructure."