The Court of Appeal today (24) instructed Sri Lanka Customs to expedite the ongoing investigations regarding the engine capacity of the BYD vehicles currently being held.

Court of Appeal President, Justice Rohantha Abeysuriya, stated in open court that while Customs plays a vital role in collecting tax revenue for the national economy, the interests of vehicle buyers and importing companies must also be considered.

Due to this, the judge informed the petitioner’s party that the investigation should be concluded swiftly and that support should be extended for this process.

This statement was made during the hearing of a petition filed by John Keells CG Company, requesting an order to release the vehicles currently held by Customs.

During the hearing, Additional Solicitor General Sumathi Dharmawardena, appearing on behalf of Sri Lanka Customs, informed the court that the vehicles in question could potentially be released under certain conditions based on a company bond.

He emphasized that the petitioner company should cooperate with the investigation.

The Additional Solicitor General also stated that a report regarding the vehicle inspection scanning equipment imported by the petitioner company would be submitted to the court next Monday via a motion.

However, President’s Counsel Farzana Jameel, appearing for the petitioner, argued before the court that the manner in which Customs had detained the vehicles was unlawful.

Despite lengthy submissions from both the petitioner and respondent parties, no agreement was reached regarding the conditional release of the vehicles under a bond.

Accordingly, the Additional Solicitor General informed the court that a decision regarding the possibility of settling the case would be announced on 28th October. (Newswire)

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Sri Lanka Customs has agreed to release 506 BYD electric vehicles that were previously detained, following the submission of an additional bank guarantee.

The Customs Department gave an undertaking in this regard before the Court of Appeal today (03 Sept). 

The agreement was announced during the hearing of a petition filed by John Keells CG Auto Pvt. Ltd, the company that imported the vehicles.

The vehicles have been detained over issues related to motor capacity, whether it is 100 kW or 150 kW, a key factor in calculating import duties. (Newswire)

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Sri Lanka Customs has agreed to release 991 BYD electric vehicles currently held in its custody, subject to several conditions, the Court of Appeal was informed on Thursday.

The development came during the hearing of a petition filed by John Keells CG Auto Pvt. Ltd. challenging the prolonged detention of the imported vehicles.

According to submissions made in court, the Customs Department has stipulated that a sum of approximately Rs. 3.6 billion — representing the disputed difference in duties — must be provided as a bank guarantee through a state-owned bank. In addition, the petitioner has agreed to bear the interest costs related to the guarantee.

Of the 997 vehicles originally held, six will remain in custody for ongoing investigations, while the remaining 991 will be released under the proposed terms.

Following partial agreement by the petitioner to the proposed conditions, the Director General of Customs expressed consent before the court to proceed with the release of the vehicles under the outlined terms. (Newswire)

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Minister of Labour and Deputy Minister of Economic Development Anil Jayantha addressed concerns surrounding a large consignment of BYD electric vehicles currently detained by Sri Lanka Customs over discrepancies in declared motor capacity.

Approximately 1,000 BYD vehicles, shipped in several consignments, were held after concerns had been raised that vehicles declared with a 100-kilowatt (kW) motor capacity may in fact be equipped with 150 kW motors. The motor capacity is a key factor in determining the applicable import duty rate in Sri Lanka. 

Speaking during a televised interview, Jayantha said a group of used vehicle importers initially raised concerns about inconsistencies in documentation. “They pointed out that when importing used vehicles, their documents had to state the motor capacity as 150 kW, which incurs a higher tax. However, these brand new vehicles have been imported with documents declaring 100 kW,” he said.

Jayantha said that both sets of documents were presented to him and subsequently discussed with Customs officials.

When asked about allegations that vehicles with 150 kW capacity were imported using documents declaring only 100 kW—and that the motor output may have been limited to 100 kW via software—Jayantha said investigations are ongoing. He noted that the Sri Lankan Gazette mandates taxes to be calculated based on the vehicle’s motor capacity, not its output.

“There are now questions as to whether the documents were forged to show a downgrade, or if software was used to reduce output,” he said. “Whatever the case, Customs will carry out a verification process to determine the actual motor capacity.”

Responding to concerns about customers who have already placed orders for the detained vehicles, Jayantha said that in some cases, it may be possible to recover funds through bank guarantees if fault is established. However, he noted uncertainty about whether the importing company would be willing to provide such guarantees on behalf of end users.

Regarding potential tax evasion involving previously released vehicles imported under similar conditions, Jayantha said Customs has provisions to audit past imports. He added that any penalties or unpaid taxes should be the responsibility of the importer, not the consumer. (Newswire)

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Sri Lanka Customs has confirmed that an official inquiry is underway into the declared motor capacity of a consignment of BYD electric vehicles, amid suspicions that the vehicles may have been underdeclared to reduce tax obligations.

Appearing before the Committee on Public Finance (COPF), Customs Senior Director and spokesperson Seevali Arukgoda said the investigation was launched following complaints from industry stakeholders and information received from Deputy Minister of Finance. 

The full consignment of vehicles was declared as having 100-kilowatt (kW) motors, but Customs is now examining whether they are actually equipped with 150kW motors—a classification that would significantly raise applicable excise duties.

Customs officials have attributed delays in the investigation to a lack of timely support from the importer, John Keells CG Auto (Pvt) Ltd, the official BYD agent in Sri Lanka.

“We told them we need to check the Motor, but they say it’s a process, so the delay is from their end,” the Customs spokesman added.

Authorities are also probing whether the vehicles’ software may have been altered to indicate a lower motor output than the actual capacity. The University of Moratuwa is expected to assist with technical testing to verify the true specifications of the motors.

COPF Chair MP Harsha de Silva noted that testing must adhere to international standards, as the matter involves a foreign manufacturer.

The investigation comes in the wake of Customs detaining nearly 1,000 BYD vehicles at the Colombo Port. While the importer maintains that the vehicles are compliant and feature 100kW motors, a final determination from Customs is still pending. (Newswire)

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Chinese electric vehicle giant BYD plans to roll out its first car assembled in Pakistan by July or August 2026 to capture growing demand for electric and plug-in hybrid vehicles in the region, a company executive said.

BYD, the world’s top EV maker, has been expanding rapidly outside its home market, where it is in a strong price war. The Pakistan plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government.

The plant has been under construction since April near Karachi in a partnership between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power , Danish Khaliq, vice president of sales and strategy at BYD Pakistan, told Reuters.

It would initially have the capacity to produce 25,000 units a year on a double shift, he said. He did not elaborate on when the plant would achieve full capacity or say when mass production would begin there.

The plant will start by assembling imported parts, with some local production of non-electric components, Khaliq said, adding it would initially produce vehicles for the domestic market, with potential to export to right-hand drive countries in the region depending on freight costs and business economics.

“We do not foresee excess capacity in our system as demand in Pakistan will catch up,” he said.

BYD started delivering imported EVs in Pakistan in March. Khaliq did not give an exact sales number but said the sales of a few hundred cars had exceeded internal targets by 30%.

Khaliq said he expected the market size of EVs and plug-in hybrid cars in Pakistan to grow three to four times in 2025 from around 1,000 total units in 2024. BYD is targeting a 30-35% share of the segment, Khaliq said.

Based on a HUBCO filing, BYD Pakistan made around 444 million rupees ($1.56 million) in profit in the 2025 March quarter.

BYD will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. China’s MG already sells a PHEV SUV, while rival Haval is set to join the segment soon.

Plug-in hybrids offer a more practical option in Pakistan as the country faces a lack of charging stations for all-electric vehicles. The government slashed power tariffs for chargers by 45% in January to encourage EV uptake and private charging stations. (Reuters)

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Shares of BYD, the largest Chinese electric vehicle brand, tumbled 8.6% on Monday following news that the company offered steep discounts in some models, sparking concerns about a fresh price war in China’s EV markets.

The decline continued in Tuesday’s Asian session, with BYD shares falling a further 4% in Hong Kong as of 5am CEST. Despite the drop, the stock remains up more than 50% year-to-date on the Hong Kong Stock Exchange. In contrast, global competitor Tesla saw little change in its share price on Monday, but remains down 13% year-to-date in 2025.

The aggressive pricing strategy has raised concerns over slowing EV demand amid persistent weakness in the Chinese economy and heightened US-China trade tensions. Other major Chinese EV makers also saw declines on Monday, with shares of Geely, Great Wall Motor, and Xpeng falling between 4% and 9% due to fears that deeper discounts could squeeze sector profit margins.

A sweeping price cut

BYD announced broad price reductions across 22 electric and plug-in hybrid models, effective until 30 June, according to a post on the company’s official Weibo account. The discounts, which range from 10% to 30%, apply to vehicles from its Ocean and Dynasty series. The most significant cut was for the Seal 07 DM-i model, with a discount of 53,000 yuan (€6,460), or 34%.

Analysts expect rival Chinese carmakers to follow BYD’s lead as domestic competition intensifies. The pricing strategy also appears aimed at reducing the excess inventory of older models. In the first four months of 2025, BYD’s dealer inventory rose by approximately 150,000 units, equal to around half a month’s worth of retail sales, according to CnEVPost.

Citi analysts estimate that the price reductions could drive a 30% to 40% weekly surge in sales. This may potentially offset margin pressure.

BYD growth remains robust, surpassing Tesla in European sales

Despite investor concerns, BYD remains on a strong growth trajectory and continues to challenge Tesla in global markets. In April, BYD reported 380,089 sales of new energy vehicles (NEVs), a 21% year-on-year increase. Overseas sales also set a new record for the fifth consecutive month.

In a key milestone, BYD outsold Tesla in Europe for the first time last month, with 7,231 new battery-electric vehicles registered, a 169% year-on-year jump. By comparison, Tesla’s sales have fallen across Europe in 2025, a trend attributed in part to growing anti-Tesla sentiment linked to CEO Elon Musk’s political involvement.

During the first quarter, BYD sold nearly 1 million vehicles, placing it firmly on track to achieve its 2025 target of 5.5 million annual vehicle sales. The company reported a net income of 9.15 billion yuan (€1.11 billion), with a gross profit margin of 20%. This compares with Tesla’s $409 million (€359 million) and a 16% margin over the same period.

BYD is also investing in advanced driver-assistance systems. The company’s adoption of DeepSeek’s R1 AI model is expected to rival Tesla’s Full Self-Driving (FSD) technology, potentially at a significantly lower cost.

In addition, BYD is China’s second-largest battery manufacturer after CATL, giving it a competitive edge in cost control and vertical integration.

BYD is likely to remain less impacted by US tariffs as it does not sell passenger vehicles to the US. Instead, it is focusing on Southeast Asia and South America for international growth. The company is also establishing a manufacturing plant in Hungary, which is expected to boost European sales. (Euro News)

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