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Prime Minister’s Office to take legal action over undelivered EVs and outstanding subsidy refunds

August 7, 2025
in Crime/Legal, Headlines, Other Stories
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The Prime Minister’s Office will be taking legal action if Kuenphen Motors and Bhutan Hyundai fail to refund subsidies for 29 vehicles by tomorrow and deliver 5 electric vehicles by October this year. This comes after an Independent Task Force under the Prime Minister’s Office found out 34 electric vehicles were missing under the government’s EV project.

Under the ‘Sustainable Low Emission Urban Transport Systems’ EV project, four vehicle dealers were required to supply 300 electric vehicles by 2023. Each vehicle came with a 20 per cent government subsidy. The government has already paid subsidies for all 300 vehicles.

However, media reports earlier this year highlighted missing vehicles, even though the project ended two years ago.

Last month, the government formed a Task Force to verify the data and oversee the project.

The Task Force found that 34 vehicles were not delivered, 32 by Kuenphen Motors and two by Bhutan Hyundai.

To resolve this, the Task Force identified new buyers interested in purchasing electric vehicles.

Kuenphen Motors confirmed 4 valid orders. Bhutan Hyundai confirmed one. These five vehicles must be delivered by October.

That leaves 29 vehicles without confirmed orders, 28 from Kuenphen Motors and one from Bhutan Hyundai. The Prime Minister’s Office has now ordered both suppliers to refund the subsidies for these vehicles by tomorrow. Task Force says each refund amounts to about Nu 400,000.

The PM’s Office warns that failure to deliver the vehicles or refund the subsidies will result in legal action.

Samten Dolkar

Edited by Sangay Chezom

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