Bhutan vehicle demand surges following lift on ban
Following the government’s decision to lift ban on import of vehicle after two years, Bhutanese dealers are already getting high volumes of demand from consumers for Indian cars.
A Hyundai dealer registered 7 orders in a day on Saturday – a day after the ban was lifted. Maruti, Honda, Ranault and alike Indian cars’ orders also piling up now.
Bhutan has a total of 68,129 vehicles out of which Thimphu alone has 36,265 vehicles.
However, the government has imposed additional 20% green tax on vehicles above 1,500 cc and 5% tax on vehicles below 1,500cc. Now, vehicles with cylinder capacity at or below 1800cc imported from India entail 55% tax (45% sales tax and 10% green tax). Vehicles imported from third countries with cylinder capacity at or below 1500cc entail 100% tax (45 % sales tax, 45% customs duty and 10% green tax).
Vehicles with the cylinder capacity between 1500cc to 1799cc entail 115% tax (50% sales tax, 50% customs duty and 15% green tax) and vehicles with 1799cc-2500cc, tax imposed is 120%, 2500cc to 3000cc at 125% tax, and over 3000cc, tax imposed is 180%. Tax imposed on hybrid cars would be 45%.
Despite that, Indian cars are preferred in Bhutan. To understand this better, Hyundai Sante fe imported from Korea will cost about Rs 2.9 million, and a 1500CC Santro Xing imported from India will cost less about Rs 450,000.
Thunder Motors, a company that is well versed with sales of electric cars will soon commence orders for non electric SUVs and for the Nissan Terrano.
Maruti Alto isn’t to be sold in Bhutan, and Alto 800 would be available at a strating price of about Rs 4 lakh. Maruti Celerio replaces A-Star at a starting price of about Rs 500,000 lakhs. Maruti Omni and WagonR prices will start at about Rs 400,000 and Rs 500,00. Ertiga will also be sold. Toyota Prado (Rs 5-6 millions) and Hilux are to be sold in Bhutan. The State Trading Corporation of Bhutan Limited (STCBL) deals with Toyota cars imported from Japan and Tata and Eicher from India.
