In Order To Sell Nissan LEAF in Volume in Bhutan, Its Price Must Be Reduced

MAR 12 2014 BY ERIC LOVEDAY 4

Nissan LEAF in Bhutan

Nissan LEAF in Bhutan

“This is a very initial step.”

Ghosn Shakes Hands With Bhutan's Prime Minister

Ghosn Shakes Hands With Bhutan’s Prime Minister

Nissan CEO Carlos Ghosn stated of the LEAF’s entry into Bhutan.

“We obviously want to sell a lot of LEAFs, but it’s still early to talk about how many.”

The problem is that in order to “sell a lot of LEAFs” in Bhutan, Nissan will have to aggressively price it.

As Bloomberg says:

“…at its starting U.S. advertised price of $28,800 (editor’s note: 2014 base LEAF has increased to $28,980), the LEAF is more than 12 times Bhutan’s per capita income, according to World Bank data.”

Bloomberg quotes Bhutanese resident Ngawang Rinchen as saying:

“Only highly-paid people can afford a car.  First I want to support my family, then myself and then the government.”

The majority of the vehicle on the roads of Bhutans are the cheapest econo-boxes available.

Another Bhutanese resident by name of Jigme is quoted by Bloomberg as saying:

“Will the electric cars be cheap?  If not, then it won’t make a difference.”

So, unless Nissan slashes perhaps ten thousand dollars or more off the LEAFs price, it will be beyond the means of Bhutanese buyers.

Source: Bloomberg

Categories: Nissan

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4 Comments on "In Order To Sell Nissan LEAF in Volume in Bhutan, Its Price Must Be Reduced"

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Bhutan seems to be the place to sell a used Leaf coming off lease rather than a new Leaf. If Nissan really wanted to sell more new Leaf vehicles, they would have lowered the price of the 2014 Leaf instead of raised it. They also would not have waited until February 21, 2014 to updated the Nissan USA Leaf product website to show the 2014 rather than the 2013. They would not put out a survey that starts rumors about a 150 mile range battery, since this will cause people to delay their new vehicle purchase to wait for the extended range. Toby Perry would not be waiting to the “latter half of February” to market the Leaf with more advertising.

While Nissan has a good product that is a leading seller, the way they market it is a real puzzler. They don’t create much buzz for the Leaf with this news of Carlos in Bhutan.

Here are a few things they might want to try instead.

1. Announce large order fleet sales.
2. Roll out more level 3 chargers across the US.
3. Lower the price.
4. Get the 150 mile range Leaf into production now.

I think if they ever cut the price of it by $10,000 in this country I don’t think they would be able to built them fast enough.

Some how I think the i-MEV in theory could move into the leaf’s territory here in that it’s the cheapest EV on the road right now.

Obviously, in a country with a per-capita income of $2,420, a $30k car seems expensive. All cars seem expensive. Which is why most people get around in taxis there.

The most important point is that as in other countries, the cost of fuel is so much less that the car is practically free. Except in Bhutan, even more so, because electricity is nearly free; the country has abundant Hydro power.

Electricity is about 3 cents per kW, less if you’re charging from a commercial site.

Seventy five cents for a full charge. According to the Financial Times, a typical taxi driver would save $4,700 per year in fuels costs. It’s a totally free car after 6 years.

I don’t know if taxi wages are close to per-capita average, but imagine being able to triple your wages after the car is paid off.

I’ll take two, please.

Don’t worry Bhutan will have another Electric vehicle to company Leaf. Its Mahindra E20. I accept that its Fugly looking car but very cheap as compared to leaf. It will cost them around 11000-12000 USD.
More details at http://www.mahindra.com/News/Press-Releases/1393507288