Gujarat EV sales surge 75% in March

Ahmedabad: Fuel shortage concerns and a race to beat expiring tax incentives drove Gujarat's electric vehicle sales up 75.5% year on year in March, with pure EV registrations more than doubling. The state govt has now extended RTO-linked tax incentives for EVs until March 31, 2027, providing an additional boost to demand. In a notification issued on March 30, the govt amended the incentive deadline from March 31, 2026, to March 31, 2027. The decision is expected to further elevate demand for electric vehicles in Gujarat.According to ministry of road transport and highways data, Gujarat recorded 12,729 EV sales in March 2026, including battery-operated vehicles, pure EVs, petrol hybrids and diesel hybrids, up from 7,252 units in March 2025. Of the March 2026 total, 11,126 were pure EVs, compared with 5,271 pure EVs a year earlier. While overall EV sales climbed 75.5%, pure EV sales surged 111% year on year, reflecting stronger affordability, sustained policy support and shifting consumer sentiment."Inquiries for electric vehicles have doubled in both the two-wheeler and four-wheeler segments, driven largely by concerns over a possible fuel shortage and people wanting to safeguard their mobility. EV sales are already growing by 30-40% across both categories, while in some pockets demand has surged by 50-100%, depending on the area. On a month-on-month basis, March sales have almost doubled," said Pranav Shah, Gujarat chairperson of the Federation of Automobile Dealers Associations (FADA)."The extension of tax incentives under the Gujarat Motor Vehicles Tax Act ensures that buyers continue to benefit from lower upfront costs, a key trigger in a price-sensitive market," he added. Although the state ended its direct subsidy in 2024 of up to Rs 20,000 for electric two-wheelers and Rs 2 lakh for electric cars, a combination of central support and local incentives, such as municipal tax rebates, will support electric vehicle adoption.Electric two-wheelers continue to dominate volumes, given their affordability and suitability for daily commuting. However, the passenger vehicle segment is also gaining traction, particularly among upper-income buyers and fleet operators looking to offset fuel price volatility.Ravish Shah, an EV dealer from Ahmedabad, said demand picked up sharply ahead of the subsidy deadline. "Customers were well aware of the impending changes ahead of the March-end deadline. From around March 12, we saw a sizeable uptick in demand, as buyers rushed to avoid a potential Rs 11,000 increase due to subsidy withdrawal and RTO cost revisions. Today, daily commuters and professionals have been increasingly preferring at least one EV for their office use, especially those with rooftop solar looking to optimize running costs and the concerns over fuel shortage."In addition to the EV tax subsidy, central support under schemes such as the PM e-Drive Yojana offers incentives of around Rs 2,500 per kW for electric two-wheelers priced up to Rs 1.5 lakh. Fuel supply concerns have added another layer to the shift. Rahul Shah, an industrialist, recently purchased an EV to reduce dependence on conventional fuels. "I am taking measures at both business and household levels to ensure that dependence on gas and conventional fuels is less. The idea is to safeguard my mobility and ensure continuity of operations," he said.