Automotive Industry

Vehicle manufacture, distribution and electric mobility in the Gelephu Mindfulness City are governed by the general company, customs, contract, tax and employment framework, and this page describes that framework. A distributor or assembler is formed under the Companies Act 2025 or registers a foreign branch. Vehicles and parts enter under the Customs Act 2025: duty is charged on entry into the customs territory at rates the designated officer sets by Gazette order, dutiable goods arriving by road or air are first deposited in a free trade zone, licensed warehouses defer duty, and Bhutan's tariff classification and sales tax apply through the Application of Laws Act 2024. Sales made from 15 June 2026 carry the implied terms of the Sale of Goods Act 2026, and under the Unfair Contract Terms Act 2026 a manufacturer's or dealer's terms cannot exclude the quality and fitness conditions against a consumer or exclude negligence liability for death or personal injury. Land vehicle insurance is a licensed non-life class under the Financial Services Act 2025. Charging and fleet projects that draw on GMC's hydropower relate to the Green Energy and Technologies priority industry. The company rate is 15% under the Income Tax Act 2025, plant and machinery attract a 33⅓% annual allowance, and foreign technicians need work passes.

Basnet Law Pte. Ltd. advises manufacturers, distributors and mobility ventures on entity or branch formation, import, warehousing and customs compliance, distribution and dealership agreements under GMC law, warranty and consumer terms drafted to the 2026 Acts, insurance placement, charging infrastructure site and power arrangements through the Economic Development Group, work passes, and disputes.