India’s Mahindra Sells $11,300 Electric Car in Bhutan

Mahindra & Mahindra (MM) Ltd., India’s biggest sports utility-vehicle maker, introduced an electric car in Bhutan to help the Himalayan kingdom clear the air of fuel fumes and attract more tourists to its pristine environs.

The e2o will retail at a starting price of 699,000 ngultrum ($11,300), Mumbai-based Mahindra said today in an e-mailed statement. Bhutan, which imports all its oil, signed an agreement to develop charging infrastructure for electric vehicles in the landlocked nation, the company said.

Growing emissions from vehicle exhaust threaten Bhutan’s reputation for clean air and its tourism industry, a major source of foreign exchange, the nation’s Department of Roads said at a United Nations conference in November. While Bhutan exports 72 percent of the hydropower electricity it generates, most of the money earned is spent on importing diesel and gasoline, according to Nissan Motor Co., which introduced its Leaf electric car there this month.

Bhutan, which has a total of 44,678 light vehicles, will also get a Tesla Motors (TSLA) Inc. Model S next month for trial, Prime Minister Tshering Tobgay said last week.

To contact the reporter on this story: Natalie Obiko Pearson in New Delhi at

To contact the editor responsible for this story: Reed Landberg at

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