ECONOMYNEXT – Sri Lanka Customs has detained about 1,000 more Chinese-made BYD electric vehicles arriving on the island over the declaration of motor capacity which is used to calculate taxes, official sources said.
Customs released the first 1,000 detained BYD electric vehicles amid a court case, with the importer giving a bank guarantee until the matter is resolved.
“Another 1,000 BYD vehicles have now been detained. This time it is not only Atto 3 models, but Atto 1, Atto 2, and Dolphin models are included,” a source who is aware of the Customs’ decision told EconomyNext.
The first detentions involved Atto 3 BYD vehicles with a declared motor of 100 kiloWatts following a complaint that the cars are usually produced with a 150kW motor, which attracts a higher rate of duty in Sri Lanka.
The excise for a 100 KW motor vehicle is 2.4 million rupees, but this rises to about 5.4 million rupees for a 150 KW vehicle.
“This time it is not only 150kW vehicles, but even lesser motor capacity vehicles,” the source said, adding that this time some have declared the motor capacity as 49kW whereas the original capacity is suspected to be 70kW.
Another source said the latest detentions by Customs involves more models, including 200 BYDs in Atto 1 category, 100 in Atto 2 category, 450 in Atto 3, and 250 vehicles in Dolphin category.
JKCG Auto, the importer has said the motor output is determined by technology including software, and it is standard EV manufacturing practice followed by BYD, which is used to make and sell lower output cars in other countries including Singapore and Nepal.
JKCG released the first batch of cars with with a bank guarantee taking responsibility for additional taxes if any, after making a public statement that it was “actively engaged” in discussions with authorities to resolve the dispute.
“We hope to clear the the latest consignments soon and deliver to customers,” a spokesman for the company said.
Sri Lanka authorities had taken six BYD vehicles for motor capacity testing both locally and internationally before releasing to ascertain the motor, sources said.
In the case of conventional piston engine cars, it is customary for the same model to come in different sized engines. The same model of some mid-sized petrol cars for example used to come in 1300cc, 1500cc and even 1800cc engines.
Electric cars use complex drivetrains, which may involve motors (so-called firmware limited), electronic control units (ECUs), a battery managment systems, to provide specific driving characteristics and transmit power to wheels.
Other EV manufacturers are also selling models with manufacturer rated motors in foreign and local markets.
Sri Lanka authorities are yet to make a decision on the matter.
Related:
Sri Lanka Customs detain around 1,000 BYD EVs in motor capacity probe.
Sri Lanka’s JKCG says in discussions with authorities over detained Chinese BYDs
Already over 2,500 BYD vehicles have been released to end users. (Colombo/August 30/2025)
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