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Electric Vehicle Policies in India: Delhi & Gujarat

India is witnessing a significant shift towards electric vehicles, driven by government initiatives and growing environmental concerns. This blog post examines the latest policy developments in two key states: Delhi and Gujarat. We’ll delve into the specifics of their approaches to EV adoption, including tax incentives and potential bans on petrol vehicles.

Delhi’s Bold 2025 Draft Policy: Curbing Petrol Vehicles & Fast‑Tracking EV Adoption

Delhi’s ambitious 2025 draft EV policy aims to drastically reduce reliance on petrol vehicles and accelerate the adoption of electric vehicles within the city. This policy is built around providing substantial EV incentives to encourage a transition.

• Key Focus: Petrol Ban Delhi – The policy strongly suggests a phased ban on the sale of new petrol and diesel vehicles by 2026, with a more stringent phase-out schedule for older vehicles.
• EV Incentives: The draft outlines various incentives including subsidies for purchasing electric scooters, cars, and buses.
• Charging Infrastructure: Significant investment is proposed for establishing a robust charging infrastructure across Delhi.
• Fleet Electrification: A major component is the electrification of the Delhi Transport Corporation (DTC) fleet.

Gujarat Slashes EV Road‑Tax to Just 1%: What It Means for Buyers & OEMs

Gujarat has taken a proactive step by reducing its EV road tax to a mere 1%. This move is expected to significantly boost EV sales and provide a competitive advantage to manufacturers and buyers.

• Tax Reduction: The Gujarat government has reduced the road tax on electric vehicles to just 1%, making EVs more affordable.
• Impact on Buyers: This reduction translates into substantial savings for consumers purchasing electric vehicles.
• OEM Advantage: The lower tax rate makes EVs more attractive for Original Equipment Manufacturers (OEMs) operating in Gujarat.
• Boosting Sales: Analysts predict that this tax cut will drive a surge in EV sales within the state.

Comparing the Two Approaches

While both Delhi and Gujarat are committed to promoting EV adoption, their approaches differ. Delhi’s policy is more aggressive, outlining a potential ban on petrol vehicles, whereas Gujarat focuses on providing financial incentives via tax reduction. Both policies demonstrate the growing importance of electric vehicles in India’s transportation landscape.

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