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Gujarat’s Green Mobility Policy 2026 aims for green vehicles to make up 30% of new vehicle registrations by 2031.
The policy defines green vehicles broadly, including electric vehicles, hydrogen vehicles, biofuel-powered vehicles and ethanol E100 vehicles.
From January 2028 and January 2029, only green vehicles will be permitted for new registrations in several priority-sector vehicle categories.
The policy offers scrappage incentives, retrofit support, tax exemptions and additional benefits for women buyers to encourage the shift away from petrol and diesel vehicles.
India has set an ambition for electric vehicles to account for 30 per cent of new vehicle sales by 2030, in line with the global EV30@30 campaign. Gujarat, however, has framed its new target more broadly. Under the Gujarat Green Mobility Policy 2026, the state government aims to raise the share of “green vehicles” to 30 per cent of all new vehicle registrations by 2031.
The definition is not limited to electric vehicles. It also includes vehicles powered by hydrogen, biofuels, ethanol or any other low-emission and environmentally sustainable technology that the government may notify.
The policy defines a green vehicle as a motor vehicle powered by electricity, hydrogen, biofuels or another low-emission and environmentally sustainable technology, with a lower environmental impact and lower emissions than conventional fossil fuel-powered vehicles.
According to the policy’s classification based on VAHAN categories, green vehicles include pure electric vehicles and battery-operated vehicles, fuel-cell hydrogen vehicles and hydrogen internal combustion engine vehicles, and ethanol E100 vehicles.
This wider definition means Gujarat’s target is not the same as an electric vehicle adoption target. It includes other alternative-fuel technologies that the state government considers part of its green mobility transition.
Under the policy, the state government has set a target for green vehicles to make up 30 per cent of all new vehicle registrations by 2031. The target is 40 per cent for new two-wheelers, 30 per cent for passenger three-wheelers and goods three-wheelers, and 30 per cent for four-wheelers.
For light goods vehicles, the target is 25 per cent. For goods vehicles, it is 20 per cent, while for buses it is 15 per cent. The policy also sets a target for green vehicles to account for 10 per cent of new tractor registrations. Several mandatory provisions have also been included.
From January 1, 2029, only green vehicles will be permitted for new registration of two-wheelers, passenger and goods three-wheelers, four-wheeler cars and light goods vehicles in priority sectors. This means that new petrol and diesel vehicles in these categories are proposed to be phased out in such sectors and will not receive permission to be registered.
The policy also sets phased targets for school buses. All schools in priority areas must ensure that at least 10 per cent of their total bus fleet is electrified by December 31, 2028. This rises to 20 per cent by December 31, 2029 and 30 per cent by December 31, 2030. The provision applies to all school buses, whether owned, rented, leased or hired.
The Gujarat Green Mobility Policy 2026 also includes strict provisions for new vehicle registrations in priority sectors. From January 1, 2028, only green vehicles will be permitted for new registration of three-wheeler passenger carriers, three-wheeler goods carriers and four-wheeler transport cars.
For two-wheelers and light goods vehicles, the provision will apply from January 1, 2029. The policy therefore seeks to gradually make green vehicles mandatory in priority sectors, replacing new petrol and diesel vehicles in these categories.
The policy also seeks to shift high-use and high-emission fleets towards cleaner vehicles by 2031. It aims for at least 80 per cent of new public buses purchased by urban local bodies to be green vehicles.
For new buses purchased by the Gujarat State Road Transport Corporation, the target is at least 50 per cent. Among government vehicles, the target is for at least 80 per cent of new four-wheelers to be green vehicles.
The policy also sets a target for at least 80 per cent of new goods vehicles purchased, hired or leased by urban local bodies to be green vehicles. Fleet aggregators and delivery service providers are also expected to include green vehicles in their new vehicle fleets.
The Gujarat Green Mobility Policy 2026 provides scrappage incentives to encourage the replacement of old, inefficient and polluting internal combustion engine vehicles. Eligible BS-IV and older vehicles registered in Gujarat can receive an incentive of Rs 10,000 for two-wheelers, Rs 20,000 for three-wheelers and Rs 50,000 for four-wheelers if they are scrapped.
The scrappage incentive will be linked to the Certificate of Deposit and will apply only to vehicles registered in Gujarat and owned by residents of the state. The policy also provides financial assistance to convert existing internal combustion engine vehicles to electric mobility. The government will offer incentives for the conversion or retrofitting of eligible vehicles using approved electric vehicle conversion or retrofitting kits.
For four-wheelers, the incentive will be 20 per cent of the kit cost. A maximum of 20,000 vehicles will be eligible, with assistance capped at Rs 75,000 per vehicle. For trucks and buses, the incentive will also be 20 per cent of the kit cost. A maximum of 1,500 vehicles in this category will be supported, with assistance capped at Rs 15 lakh per vehicle. This support will be subject to conditions including vehicle eligibility, certification and testing by an authorised agency.
The Gujarat government has also proposed financial and regulatory incentives for green vehicles. Eligible green vehicles registered in Gujarat during the policy period will receive a 100 per cent exemption from motor vehicle tax levied under the Gujarat Motor Vehicles Act, 1988. This includes both lump-sum and recurring taxes.
The policy is therefore intended not only to encourage the purchase of new electric and other green vehicles, but also to support the gradual transition of the wider vehicle fleet towards cleaner transport. It does this through incentives for scrapping old polluting vehicles, converting existing internal combustion engine vehicles to electric, and registering new green vehicles.
Eligible green vehicles will also receive a 100 per cent waiver on registration fees, in line with the Union Ministry of Road Transport and Highways notification of June 18, 2019, and subsequent amendments. Eligible green vehicles in the transport category will receive a full waiver on permit fees.
Green vehicles registered in Gujarat during the policy period will also be fully exempt from passenger tax levied under the Gujarat Motor Vehicles (Taxation of Passengers) Act, 1958. Women buyers will receive an additional incentive of Rs 5,000 for two-wheelers and three-wheelers, and Rs 10,000 for four-wheelers, when purchasing green vehicles.
