Bhutan's automotive market is shaped by import dependence, environmental policy and a national push toward electric mobility that is consistent with the Kingdom's carbon-negative commitment. For manufacturers, distributors and electric vehicle ventures, the central questions concern market entry, distribution structure and ongoing regulatory compliance. Vehicle import, sale and distribution engage customs and tax rules, the applicable fiscal incentive framework and sector licensing, while electric vehicle and charging infrastructure projects intersect with energy policy and incentive schemes. Foreign automotive and mobility companies enter the market under the FDI Rules & Regulations 2025, which set minimum capital thresholds and equity caps by sector and now permit qualifying businesses to lease state land for an initial term of 30 years.

Basnet Attorneys & Law advises on foreign direct investment registration and market entry, distribution and dealership agreements, import and customs compliance, electric vehicle and charging infrastructure structuring, warranty and consumer terms, and disputes. We help foreign principals appoint and govern local partners through business formation and licensing support and agreements that protect brand, margin and territory.