National EV Rankings Are Out: What's Next For Gujarat's EV Policy?

To compete with the top states in EV adoption in India, Gujarat needs to support the new experimental industry with incentives such as vehicle scrappage schemes, reserved parking, and permit exemptions for EV users.

Additionally, the state must implement battery recycling facilities locally and accelerate policy execution and infrastructure development.

Although the Gujarat government has provided several incentives under its EV policy, the national-level outcome has been weak. States like Delhi, Maharashtra, Chandigarh, Tamil Nadu, and Karnataka have surpassed Gujarat.

The India Electric Mobility Index (IEMI) 2024 report recommends that Gujarat start centres of excellence and skill-based courses for e-mobility, implement a single-window system for public charging stations, and establish R&D centres for EV research.

A top official from the Gujarat Energy Development Agency (GEDA) accepted the Centre's report, saying, “Under the EV policy, the state government had set a target of 2 lakh EVs, including 1.10 lakh two-wheelers, 70,000 three-wheelers, and 20,000 private and commercial vehicles. However, due to some policy-related as well as technical reasons, this target could not be achieved. Gujarat has also lagged in setting up EV charging stations.”

An official from the state transport department said that to promote EVs, GEDA provided subsidies ranging from Rs 20,000 to Rs 2 lakh, depending on the EV category, but once the scheme ended, sales were affected.

However, initiatives like the Chief Minister Urban Bus Service Scheme, subsidies of 25 per cent (up to Rs 10 lakh) for private investments in charging stations, the Go Green scheme by the Labour Welfare Board, and e-rickshaw schemes by the Pavitra Yatradham Development Board have been launched.

Government Participation In EV Initiatives

In Gujarat, the Ports and Transport Departments are responsible for policy planning and implementation under the EV policy. The Energy and Petrochemicals Department is the nodal agency for charging stations and related subsidies, while the Gujarat Energy Research and Management Institute (GERMI) is the nodal body for research, training, incubation, and other activities.

Gujarat’s Status In EVs (IEMI Rankings)

Overall IEMI Rank: 16
Transport Electrification Progress: 18
Charging Infrastructure: 17
EV Research & Innovation Status: 11

The NITI Aayog report, “Electric Vehicles in India: Unlocking a US$ 200 Billion Opportunity”, highlighted the progress so far and major gaps that remain to be addressed. It set a target of 30 per cent EVs of total vehicle sales by 2030.

Rajiv Gauba, NITI Aayog member and former Cabinet Secretary, stated that India will reduce GHG emissions over the next five years and reach Net Zero by 2070.

Only 50,000 EVs were sold in 2016. This increased to 2.08 million in 2024, requiring an additional 22 per cent growth over the next five years. The report emphasises mandates, saturation, and strategic measures rather than relying solely on subsidies. Measures include establishing inter-ministerial committees, implementing battery technology policies, charging infrastructure, city-based models, and digital support systems.

Globally, the EV market was valued at US$ 255.54 billion in 2023, expected to reach approximately US$ 2,108.8 billion by 2033. India plans to have over 80 million EVs on roads by 2030, including 30 per cent private cars, 70 per cent commercial vehicles, 40 per cent buses, and 80 per cent two- and three-wheelers.

In India, EV sales were 1.52 million units in 2023, 1.75 million in 2024, and 1.97 million in 2025, with 29,277 public charging stations operational.

Progress Of EV Sales In Gujarat

In Gujarat, 68,997 units were sold in 2022, 88,919 in 2023. But, some categories saw a decline in 2024 due to the ending of the subsidies, inadequate charging stations, and high vehicle costs. For example, 6,510 cars were sold in 2023, which dropped to 4,874 in 2024.

To promote EV sales this year, the government reduced the road tax on EVs from 6 per cent to 1 per cent, effective until March 31, 2026, offering savings of Rs 30,000 to Rs 1 lakh. However, the expected outcome — sales of 2 lakh EVs and carbon reduction of 6 lakh tonnes — has not been achieved.