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PluginIndia Electric Vehicles

Why are Nissan and Mahindra Reva investing in Bhutan?

8/3/2014

6 Comments

 
By Kamlesh Mallick
Bhutan is the worlds most 'happiest' country.  They are about to get a lot happier now!
This will happen, if Bhutan can achieve its goal of becoming a zero-emissions nation. The landlocked Himalayan country wants to replace their petrol taxi's and cars with electric cars.
With aggressive electric vehicle policies by the Bhutan government, Nissan and Mahindra REVA are rushing to the mountains!
Electric makes sense
Going electric makes total sense for Bhutan.
  • This mountain country is blessed with Himalayan rivers that has been tapped successfully for clean hydro electric power. Only 5% of the clean energy generated is used with the rest being exported to India. But they import OIL from India to run their Taxi's and Cars. Thus making the country a net importer of energy.
  • Most journeys are relatively short, most residents of the capital city of Thimpu primarily rely on a fleet of taxis for transportation, making the electrification of the fleet more significant than in other countries where more vehicles are privately owned.
  • Turning those fleets into EV's will ensure they import less OIL, which would benefit the local economy
Bhutanese prime minister Tshering Tobgay with Renault-Nissan CEO Carlos Ghosn.

Nissan
Nissan will supply quick chargers and Leaf cars for the government fleet and taxis. Bhutan will study exempting EVs from taxes and allow them to earn carbon credits. Nissan will also set up a network of charging stations across Thimphu, the capital.
“This is a very initial step,” says Carlos Ghosn, CEO of Nissan. “We obviously want to sell a lot of Leafs, but it’s still early to talk about how many.”
Carlos Ghosn cant expect to sell many Leaf's in Bhutan.  The cost of the Leaf, which is around $20,000, will ensure that the Leaf will be out of reach for a huge percentage of the population. 
Nissan promotional video about their partnership with Bhutan

Mahindra Reva
Our very own Mahindra Reva, have signed an MoU with the Government of Bhutan for a strategic partnership to promote the usage of electric vehicles. 
Mahindra launched the e2o electric car in Bhutan.  With a price tag of 6.99 Ngultrum (Bhutanse currency, ex-showroom Bhutan ) for the base model, the e2o can sell better to the general public than the Leaf in Thimpu.
Also Mahindra Reva is planning to establish infrastructure like setting up quick charge stations. 
According to Mahindra, there would be around 7,000-8,000 electric vehicles in the next three years in Bhutan and it would need 3,000-4,000 charging stations.
Picture
Bhutanese prime minister Tshering Tobgay with Mahindra leaders including Mr Chetan Maini
Mahindra will also start exporting its electric midsize sedan, Mahindra Verito Electric to Bhutan as early as September this year, even before they launch it in India. Mahindra can absolutely beat the Leaf by positioning the Verito electric sedan as an ideal taxi for Bhutan. The main advantage Mahindra has over Nissan is cost and Mahindra should absolutely take over the Bhutan taxi fleet with the Verito electric.
Picture

The Challenges for Bhutan
  • The cost will be a hindrance, as the average citizen of Bhutan earns about $1400 per year.
    There are around 10000 taxis in the entire country, around 4000 taxis in Thimpu. So after electrifying the fleet, which is government owned, they will need to sell electric cars to the general public and hope that everybody buys an EV, so that they can slash the OIL bill. This is big challenge.
    The Nissan leaf costs around $20,000 and the Mahindra e2o will cost around $12000. It remains to be seen if the people of Bhutan can afford these cars. But the prime minister Tshering Tobgay is positive - “If we can get international agencies and individuals to support us to subsidize one-third of that price, it becomes very affordable”

  • Also outside of the capital city of Thimpu, roads are poorly surfaced, mountainous, often subject to mudslides, and heavy snow.  It remains to be seen if Electric Taxi's can operate between Thimpu and Dhampu, a distance of 150+ km.  Will passengers wait at a charging station for 30 mins while the electric taxi gets charged?

  • Also the temperatures can get very cold in the winters. Nissan and Mahindra will need to work on heating their battery packs for them to be reliable all year long.

Final Words
The Prime Minister of Bhutan, Tshering Tobgay hopes Thimpu will eventually become a center for electric-car research and development. If he manages to pull it off by replacing their oil based cars and taxi's with electric ones, it will be one heck of an achievement.  India - Are you reading this?

6 Comments
Vidya
9/3/2014 05:09:39 am

A small country like Bhutan can do it to save its money, yet India does not want to save money on oil. No wonder they are called the world's happiest country.

Reply
Kamlesh
9/3/2014 05:48:12 am

I agree. Our governments face lots of bureaucratic hurdles to pass any legislations. I hope the new government forming after our elections in May start thinking bout energy security and form favorable policies to encourage renewable energy and electric vehicles.

Reply
Eric
9/3/2014 05:26:00 am

Bhutan looks to be a very beautiful country. Thanks for the pictures Kamlesh.

Reply
Kamlesh
9/3/2014 05:48:48 am

Thanks for the nice words. I now really want to go to Bhutan!

Reply
Latest Tips On Share Market link
19/4/2014 07:44:54 am

More specifically, the successful investor will focus on probabilities and economic issues and let decisions be ruled by rational, as opposed to emotional, thinking.

Reply
Mcx free tips link
2/1/2020 02:15:48 pm

A small country like Bhutan can do it to save its money, yet India does not want to save money on oil. No wonder they are called the world's happiest country.

Reply

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