BYD agent in Sri Lanka shifts to plug-in hybrids amid customs dispute

BYD agent in Sri Lanka shifts to plug-in hybrids amid customs dispute

The official local agent of the Chinese electric vehicle manufacturer BYD in Sri Lanka on Sunday advertised a plug-in hybrid version instead of a full EV that is subject to an ongoing customs inquiry.

The official agent, John Keells CG Auto, said Sealion 5, BYD’s plug-in hybrid version, is different from Atto, the full EV.

The agent is alleged to have paid low customs tariffs for EV car imports and has been facing the customs inquiry since the end of July.

In the prolonged delay to settle the customs tariff dispute, where around 2,000 cars are being held, the agents this weekend advertised to sell Sealion 5, which are powered by a 1500 cc plug-in hybrid.

The company sources said the October deliveries of EVs have been stopped, and the customers would be allowed refunds while offering the petrol engine cars at a discount.

At least two shipments of around 1,000 BYD EVs were held as it was alleged that their motor power had been declared lower, 100 kW from the actual 150 kW, so that it falls in line with a lower customs tariff.

The customs tariff for a 100 kW motor is four million Sri Lankan rupees lower than for a 150 kW motor.

In a statement issued then, John Keells Group denied any deliberate misleading of Sri Lanka Customs to lower the excise tax.

“The motor power of these vehicles has been verified through test reports issued by BYD in China and further certified by an independent testing body”, the company clarified.

Before the shipments were held, BYD experienced brisk sales after Sri Lanka allowed car imports in February this year for the first time in five years. By May, the company had captured almost 90 per cent of the electric car market and over 10 per cent of all car sales.

Commenting on the car imports between January and August 2025, a Sri Lankan independent economic policy think tank, Advocata Institute, said, “Electric vehicles are making a visible increase in new registrations, though non-electric models still dominate.” “BYD leads the way - the top-selling brand for both electric cars and SUVs according to data,” the Advocata statement said.