Gujarat EV road tax reduced to 1% — More details here!

Various State Governments across the country have been taking measures to push the adoption of electric vehicles in India by revising policies and reducing road taxes. Recently, the Gujarat Government has slashed the road tax on EVs from 6% to 1%. Read more about the news around Gujarat EV road tax reduction here.

Reduction in road tax on EVs in Gujarat

As a part of its budget for the financial year 2025-26, the Government of Gujarat has reduced the road tax levied on electric vehicles from 6% to 1%, resulting in an 83.33% reduction in road tax. This new tax slab is, however, only valid till March 31, 2026, and is subject to be revised as part of the next budgetary decisions. 

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Not applicable on hybrid vehicles

While this move might aid in boosting EV adoption, it does nothing for people considering to buy a new hybrid car in India, as the tax reduction does not include mild-hybrid or strong-hybrid vehicles. 

Check This Out: Zero Road Tax On Hybrid Cars In Uttar Pradesh?

Fall in electric car sales in Gujarat

Amidst an omnipresent decline in EV sales, the charts have been in the red for Gujarat too. As per a report by The Economic Times, EV sales in Gujarat fell from 88,614 units in 2023 to just 50,010 units in 2024, translating to a fall of 43.6%. Furthermore, the state only saw a registry of 3,900 electric vehicles from January 1, 2025 to April 17, 2025. This move should boost the morale of electric car buyers in the state amid the uncertainty on the future of ICE vehicles across the country. 

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