The Gujarat government's new electric vehicles policy has fuelled optimism among EV makers and sellers in the state.

The Gujarat Electric Vehicle Policy 2021 provides for subsidy of up to Rs 20,000 on EVs in the two-wheeler category, Rs 50,000 for three-wheelers, and up to Rs 1.5 lakh for cars. Also, the State government has exempted e-vehicles registered in Gujarat RTOs from paying registration fee. According to the state government's calculations, Gujarat's subsidy for EVs stands at Rs 10,000 per kilowatt, the highest for any State. Also, capital incentive of up to Rs 10 lakh or 25 per cent capital subsidy of the project cost, is to be provided for development of charging stations.

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Customer interest

On Tuesday, the dealerships of two-wheeler maker, Odysse Electric Vehicles, saw a flood of inquiries fromprospective buyers, on the benefits of buying an EV two-wheeler.

The CEO of Ahmedabad-based Odysse Electric Vehicles Pvt Ltd, Nemin Vora, told Businessline , "We are still trying to get the exact details of the government notification on the policy. But as soon as the news on subsidy came out, our dealers started receiving inquiry calls. We believe this policy boost has fuelled public interest in owning an EV." Odysse, which has four EV two-wheeler models, including two high-speed scooters and a motorcycle, expects the demand for high-speed scooters to receive a policy boost.

In the four-wheeler segment, Tata Motors sees the policy support for development of charging infrastructure as an accelerator for an ecosystem of electric mobility.

Welcoming the Gujarat government's announcements, Shailesh Chandra, President, Passenger Vehicle Business, Tata Motors, said, "This clearly signals the government’s resolve to ensure a cleaner environment and a sustainable future for the country. Also the support extended for charging infrastructure will accelerate the ecosystem development and ensure greater comfort for EV buyers. We compliment the Gujarat government for introducing such a progressive policy."

Tata Motors has two electric models - Nexon EV priced at approx Rs 15 lakh and Tigor EV priced at Rs 11.77 lakh - on road in Ahmedabad.

While announcing the incentives for charging infrastructure developers, Chief Minister Vijay Rupani, said given the high price of EV cars, the government's subsidy would encourage people to buy EVs, while incentivised charging station development will ensure access to charge points on highways.

EV charging infrastructure

Kartikey Hariyani, CEO of CHARGE+ZONE - an operator of charging stations, said, "Measures such as additional cash subsidy on the purchase of electric vehicles and incentives to build EV Charging Infrastructure will go a long way in making EV a formidable sector in Gujarat. We are looking forward to working closely with the government authorities to increase the outreach of charging points."

Lauding the State government's move as a bold step with potential to make Gujarat an EV hub, DG, Society of Manufacturers of Electric Vehicles (SMEV), Sohinder Gill, said, "We are excited to be part of this journey and would put in every effort towards achieving the state government’s target under the policy. The policy also gives a thrust to charging infrastructure that would address the issue of range anxiety, especially amongst people who want to buy an electric four-wheeler."

The CEO of Mahindra Electric Mobility Ltd, Mahesh Babu, said the policy announcement was progressive and comprehensive as the fiscal benefits would directly benefit the end-customer. while the non-fiscal benefits would help develop the overall EV ecosystem in the State. "The outlay of Rs 870 crore over the next four years will help EVs flourish in Gujarat. The policy outlines clear adoption strategies, especially in the last mile mobility segment. Mahindra is eager to deploy products like the Treo three-wheeler range, which will help customers earn more given its lower operating cost and will help Gujarat become one of the leading States in EV adoption in the country."

Tarun Mehta, co-founder and CEO of two-wheeler maker, Ather Energy, in a twitter post said, "Gujarat might just go from having the most expensive EVs in the country to the cheapest in one policy change today."