Nissan turns to Bhutan for electric vehicle push
Himalayan kingdom envisioned as market hotbed
TOKYO — Bhutan is set to show Carlos Ghosn whether electric cars can contribute to the good life.
Nissan Motor Co.’ s chief executive officer introduced the electric Leaf car to the Himalayan kingdom of 700,000 people, which measures progress by the gross national happiness index. While the model has failed to meet sales forecasts in other markets, Bhutan holds promise since it exports 72 per cent of its electricity and must import gasoline and diesel.
Armed with state support and favourable policies, success in turning Bhutan’s fleet may boost confidence in the prospects of electric vehicles. Failure to develop the small Himalayan kingdom into an EV showcase would be a setback to Ghosn, whose vision of a world where one in 10 cars sold are electric by the end of the decade is looking increasingly remote.
“It’s just kind of a publicity stunt,” said Edwin Merner, president of Atlantis Investment Research Corp., which manages about $ 3 billion US in assets. “Not many people are buying the car so they have to try even the smallest countries in the world.”
As part of its pledge to support Bhutan’s plans to electrify its fleet, Nissan will supply quick chargers and Leaf cars for the government fleet and as taxis, according to a statement by the Yokohama, Japan- based automaker on Thursday. The country will study exempting EVs from taxes and allow them to earn carbon credits as it seeks to replace conventional cars to cut the costs of importing fuel.
For Bhutan, adopting EVs will allow it to better utilize electricity generated by its 27 hydroelectric power plants.
Actual sales for Nissan will be limited given Bhutan’s 700,000 population, with most living in rural areas. There are a total of 44,678 light vehicles in the whole of the country.
“This is a very initial step,” Ghosn told reporters in a briefing in Thimphu on Thursday, before a power blackout. “We obviously want to sell a lot of Leafs, but it’s still early to talk about how many.”
Then there’s the price tag: at its starting U. S. advertised price of $ 28,800, the Leaf is more than 12 times Bhutan’s per capita income, according to World Bank data.
In 2009, Ghosn pointed to Denmark, Israel and Portugal as markets populated by consumers concerned about the environment, and with infrastructure that could be adapted to the needs of electric motoring. They’re also small enough to suit the restricted driving range of all- electric vehicles.