Sri Lanka customs detains nearly 1,000 Chinese EVs over misrepresentation of motor power

Sri Lanka Customs has held a second lot of Chinese BYD electric vehicles (EVs) over an alleged misrepresentation of their motor power under customs tariff classifications.

Speaking to the media on Monday (September 1, 2025), Customs spokesman Seevali Arukgoda said that the second lot, which is believed to be around 1,000 cars, has been held up for necessary testing if the engine power had been falsified.

In July, a similar consignment of 1,000 EVs from Chinese manufacturer BYD was being held at Sri Lanka Customs over suspected undervaluation of motor power to reduce excise duty, officials told the parliamentary oversight committee.

The Customs reached a settlement in August to release over 900 units pending tests to verify motor power, after judicial intervention.

In the settlement reached at the court, the Customs agreed to the car importer’s proposal to provide a bank guarantee for the tariff discrepancy of 3 billion Sri Lankan rupees to get the release of cars pending investigations.

This was after the importer John Keells CG Auto had petitioned the court seeking redress as the Customs continued to hold 991 cars.

The importer was accused of making declarations stating a lower motor capacity — 100 kW from the actual 150 kW — so that they would be charged a lower customs tariff.

However, Mr. Arukgoda said that the technical experts’ committee in terms of the court settlement has yet to be appointed in the latest seizure.

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

BYD experienced brisk sales after Sri Lanka allowed car imports in February this year for the first time in five years. By May, within 3 months, they captured almost 90 per cent of the electric car market and over 10 per cent of all car sales.