China’s BYD has emerged as the leading brand in Sri Lanka’s new car and crossover market in 2025, with sales set to surpass 4,500 units following the release of vehicles previously held by Sri Lanka Customs.
According to a report in the Economynext financial website, up to yesterday, a total of 3,444 BYD vehicles had been registered, according to official data. This figure is expected to climb significantly after the Court of Appeal approved the release of 991 units that had been detained over a dispute on motor capacity classification.
The release comes after importer John Keells CG Motors agreed to deposit a bank draft of Rs. 3.6 billion, along with accrued interest, to cover the alleged tax deficit. The detained vehicles included Atto 3 models fitted with de-rated 100kW motors, which Customs claimed were identical to the 150kW versions but limited by software.
In July 2025, Sri Lanka recorded 490 electric vehicle (EV) registrations, up from 3,400 in June, according to analysis by Colombo-based brokerage JB Securities.
BYD’s July registrations fell to 787 units from 1,254 in June. Since January, BYD has sold 1,246 Atto 3s and 1,488 Seals, with 25 of all BYDs registered this year being used imports.
With the Customs release now in motion, BYD’s presence on Sri Lankan roads is expected to grow rapidly, cementing its lead in the EV sector for 2025.
Meanwhile, the Central Bank has tightened leasing facilities for EV purchases, reducing the allowable financing from 90% of the vehicle’s value to 80%. Despite this policy shift and the relatively high prices of electric cars, market activity remains strong, reflecting both the purchasing power of consumers and their growing enthusiasm for new vehicles.
