The Himalayan kingdom of Bhutan has tapped Nissan Motor Company to supply electric cars for its taxis and government fleet, hoping to reduce reliance on imported oil.

Under the agreement announced yesterday, Nissan will supply its Leaf electric car and set up charging stations in Bhutan.

Bhutan, with a population of 720,000, produces and exports hydroelectricity. But it is eager to reduce its dependence on fossil fuels shipped in from abroad.

The Leaf is the world's best-selling electric car, selling a cumulative 100,000 so far since going on sale in late 2010, comprising 45 per cent of the global electric vehicle market.

Nissan President Carlos Ghosn said the deal would involve hundreds of electric cars in the short term. Ghosn presented two Leaf vehicles to Bhutan yesterday, the birthday of Bhutan's king.-Reuters