Despite vehicle prices substantially increasing since the lifting of the import moratorium last month, vehicle dealerships are seeing more bookings than before the moratorium was imposed. A recent government study identified changes in models, increased taxes, and higher shipping charges as the reasons behind the price increase.
Many eagerly awaited the lifting of the vehicle import moratorium last month, which had been in place for over two years.
However, eager customers were disappointed to see that vehicle prices had increased substantially compared to before the moratorium was imposed in 2022.
Despite the higher prices, most dealerships have reported positive booking numbers so far.
“Though most of the vehicle costs are high, I think customers might have been waiting for the vehicle import moratorium to be lifted. We would not get orders like this before the ban on imports. In 2021, we received a maximum of around 50 orders in a month. Currently, we have received over 100 orders,” said Pema Lodey, senior manager at Bhutan Hyundai Motors.
Other vehicle dealerships have also received bookings for over 100 units.
Apart from vehicles, a price rise was also observed in spare parts. According to the Automobile Workshops Association of Bhutan, the manufacturing costs of spare parts have increased.
“It is clear that spare parts prices have increased by six to eight per cent compared to before. This is because the manufacturing companies keep either increasing or decreasing the prices every one to two months,” said Karma Tenzin, a member of Automobile Workshops Association of Bhutan.
Meanwhile, some vehicle dealerships are suggesting that the government prioritises the import of vehicles with lower emissions.
“We have limited sources of earning rupees, and spending is higher, which affects our foreign reserves. If the government could prioritise importing more electric vehicles, it would be beneficial. As of today, electric vehicle maintenance services are provided free of cost or at reasonable prices. Though the initial cost is high, the running costs are low. So, it would contribute to our foreign reserves, support the economy, and help keep our country carbon-free,” said Dorji Tshering, chairperson of Ashok Leyland.
Regarding the new prices, vehicle dealerships said that their profit margin remains the same despite the rise in taxes and shipping charges.
Tashi Chezom
Edited by Sherub Dorji
