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Government to take legal actions against Kuenphen Motors for failing to refund EV subsidy

August 13, 2025
in Legal, Other Stories
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The government could take Kuenphen Motors to court for failing to refund subsidies or secure verified buyers for 28 electric vehicles under the EV subsidy scheme. A task force under the Prime Minister’s Office found that a total of 34 electric vehicles had not been delivered by Kuenphen Motors and Bhutan Hyundai. The government had instructed both suppliers to either provide verified buyers or refund the subsidies by last Friday.

Kuenphen Motors had not delivered 32 Electric Vehicles under the “Sustainable Low Emission Urban Transport Systems” project.

The task force instructed Kuenphen Motors to confirm orders and deliver the vehicles by October. Failing that, the company was required to refund the subsidies.

According to the task force, Kuenphen Motors submitted a list of 23 buyers, of which 19 were not eligible buyers. The company confirmed only four valid purchase orders.

Kuenphen Motors was expected to refund subsidies for the remaining 28 electric vehicles.

As the company neither secured approved buyers nor refunded the subsidies, the task force is discussing pursuing legal action.

The company told BBS that it had written to the task force last Thursday, seeking an extension of 10 days to complete verification and processing.

Hyundai Bhutan, however, managed to confirm two new buyers just before the deadline, meaning no refunds are required from their side. They will have to supply the EVs before the end of October this year.

Samten Dolkar

Edited by Sangay Chezom

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