Automobile agencies say their situation is critical. They say without a single import since March this year, their very survival is at stake.
While they have adopted some measures to counter the problem, for some, it could be a matter of downsizing the company, if the situation does not improve.
For the State Trading Corporation of Bhutan (STCB), whose 80 percent of operation pertains to automobile; they have about 120 trucks in stock to be sold out. This, according to STCB officials amounts to about Nu.150 million which remains stagnant now.
“Our capital is blocked in the form of inventory. On the other hand we have to service our over draft facilities from the bank. So this has put us into a very difficult situation,” said the Managing Director of STCBL, Dorji Namgay.
He added that with no sale, operating cost will form a large percentage of expenditure which will adversely affect the company’s revenue.
Some said for Toyota vehicles, most of the customers are able to finance themselves. But with the import ban, the company has not been able to cater to such customers. Officials feel when green tax came into play, import ban from third countries should have been lifted.
“If the ban could be lifted and the new tax could be put in place then we can service at least those people who can finance themselves,” said Dorji Namgay.
Zimbi Automobiles is a company dealing with heavy vehicles. It had 18 trucks worth Nu.17 million in stock when the import ban was first imposed. In about seven month’s time after the ban, they could sell only four.
Recently, they even tried to sell their existing stock with certain percent discount but without any success.
“There were 14 of us and after the situation we had to transfer some of our colleagues to other units. That’s how we are managing,” said the General Manager of Zimbi Automobiles, Tshering Dorji. He said they are currently managing with the returns from automobile repair and spare parts sale service.
Similarly, for other automobile companies like Bhutan, situation has not been any better.
Another automobile company, Samdhen, still has vehicles worth about Nu.48 million in stock. With minimal sale, the company has already downsized their human resources. They are also focusing more on vehicle repair and servicing.
Meanwhile, as the automobile dealers wait for the situation to improve, they said they have been losing huge amount as over draft interest to the banks. However, they are at the same time working out schemes like discount and installment payment to liquidate their existing stock.
