Various companies like Tata Motors, Mahindra and Hero Electric on Tuesday lauded the Gujarat government for bringing a new electric vehicle policy in the state.
Gujarat Chief Minister Vijay Rupani unveiled the ‘Gujarat Electric Vehicle Policy 2021’, which, according to him, has been designed to see at least two lakh electric vehicles on the state roads in the next four years.
To encourage people to turn to e-vehicles, the state government will provide subsidies ranging from Rs 20,000 to Rs 1,50,000 on the purchase of vehicles under this policy, which will remain effective for four years.
It is estimated that around 1.10 lakh electric two-wheel vehicles, 70,000 three-wheelers and 20,000 four-wheelers will be used in the state in the next four years following the implementation of this policy.
The state government will provide a subsidy of up to Rs 20,000 on the purchase of an electric two-wheeler, Rs 50,000 for a three-wheeler and Rs 1,50,000 on the purchase of a four-wheeler.
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 a cleaner environment and a sustainable future for the country,” Tata Motors President Passenger Vehicle Business Unit Shailesh Chandra said in a statement.
Also, the support extended towards charging infrastructure will accelerate the ecosystem development and bring greater comfort for EV buyers, he added.
Similarly, Mahindra Electric Mobility CEO Mahesh Babu termed the policy as both progressive and comprehensive in nature.
“The outlay of Rs 870 crore over the next four years will help EVs flourish in the state of Gujarat. The policy outlines clear adoption strategies, especially in the last mile mobility segment,” he added.
The fiscal benefits being offered by the government will directly benefit the end customer, while the non-fiscal benefits will help develop the overall EV ecosystem in the state, Babu noted.
“Mahindra is eager to deploy products like the Treo three-wheeler range, which will help customers to earn more, given its lower operating cost and will help Gujarat become one of the leading states in EV adoption states in the country,” he added.
Hero Electric MD Naveen Munjal said that the new EV policy in Gujarat post the recent amendments of the central FAME policy is an excellent move, which will further bridge the gap and make the switch to electric vehicles an attractive option.
“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 set up additional charging stations will help build the much-needed charging infrastructure and address range anxiety of the consumer,” he said.
SMEV Director General Sohinder Gill said the market is ripe for a major push towards shifting towards a cleaner mobility solution.
Gill, who is also the CEO of Hero Electric, noted that the company is committed to setting up over 20,000 charging stations across the country and with the encouragement to set up in the state via capital subsidies, the company will look at expanding its reach further.
“With revised prices, we expect our already popular CITY SPEED to see a multi-fold increase in sales in the state. Hero is committed to transforming the way the nation commutes with continued support and push from the government,” he added.
Yatin Gupte, Chairman and Managing Director of Vadodara-based electric two-wheeler maker WardWizard Innovations and Mobility, said the Gujarat government announcement is going to become a landmark in the development of the EV sector across the country.
Similarly, electric mobility startup Cell Propulsion Founder and CEO Nakul Kukar said that with the announcement of the e-vehicle policy the Gujarat government is enabling the inevitable transition from carbon-emitting vehicles to cleaner forms of transportation.
