Ahmedabad, 22nd April: To promote electric mobility and address the 22% year-on-year decline in electric vehicle (EV) sales, Gujarat has reduced the motor tax on all new EV purchases by 5%, resulting in a negligible 1% motor tax on all EVs purchased after April 18, 2025.
During the 2025-26 budget announcement, Gujarat’s Finance Minister, Shri Kanubhai Desai, explained that the tax relief aims to boost EV sales while also helping the environment.
The state government has provided this incentive for one year, which will expire on March 31, 2026.
Previously, Gujarat was making significant progress in EV adoption; however, sales have recently declined, with total sales falling to 69,134 units in FY 25, down from 88,448 in FY 24.
To qualify for the new tax break, customers must register their new electric vehicles online through the Vahan 4.0 portal. This online registration process not only provides a tax benefit, but it also streamlines the registration process by eliminating the need for a physical visit to a Regional Transport Office.
