Bhutan imported 265 Toyota vehicles in 2007 alone and in the process helped generate sales revenue of Nu 840 million, the highest in years, for the state trading corporation of Bhutan (STCB).

According to STCB officials, 40 percent of the imports were Toyota Prados. About 110 Prados, 39 Hi-ace buses, 37 Hiluxes, 30 coaster buses, 28 Land Cruisers, 13 Crown Royal Celler, and six Toyota yaris car 5 topped the list of Toyota brands imported. “It’s the highest number of imports made in a year so far,” stated a press release from the corporation. The highest sale recorded was Nu 780 million in 2001, when the corporation had dealership for other vehicles like Mitsubishi, Suzuki, Isuzu, Maruti and Mahindra vehicles.

An official from the corporation said that private individuals bought most of the Toyota vehicles with the vehicles registered in the name of civil servants, evading the 30 percent import duty levied on the import of vehicles from third countries. “Most have availed the vehicle import quota from civil servants,” said the official.

STCB attribute the surge in demand to a weaker Japanese Yen in the exchange market and to the credit facilities provided by financial corporations. Sales from vehicles composed 92% of the total STCB sales. Eight percent were from the sale of spare parts, explosives and other steel items.

“The speculation that imported vehicles will be demanded by tour agencies on rent during the coronation and centenary celebration promises better prospects in the sale of Toyota vehicles,” added the press release. The corporation expects to sell 400 vehicles this year and projects a sales revenue of Nu one billion in 2008.

However, the demand for the Tata and Eicher vehicles dropped since October 2007 and it is expected to remain so during the first half year of 2008. STCB expects the demand for these heavy-duty vehicles will pick up during the latter part of 2008, with the increase in construction activities for the Punatsangchu project.

Meanwhile, STCB is planning to open a workshop in Thimphu in April this year, to provide service and maintenance to Toyota vehicles and also to strengthen the supply of spare parts to customers.
Source: Kuenselonline