Sri Lanka Customs has detained another 1,000 electric vehicles (EVs) from Chinese automaker BYD, due to a dispute over motor capacity. The detention is the latest development in an ongoing issue between Sri Lankan authorities and BYD, which has been exporting EVs to the island nation. The controversy centers on the motor capacity of the vehicles, with customs officials claiming that the EVs have a higher capacity than declared.
The detained vehicles are valued at approximately $25 million, and their release has been halted pending resolution of the dispute. This is not the first time that BYD EVs have been detained in Sri Lanka. In recent months, several shipments of the company’s vehicles have been held up due to similar issues. The motor capacity dispute has significant implications for the Sri Lankan government’s efforts to promote electric vehicles as a more environmentally friendly alternative to traditional fossil fuel-powered cars.
The government has set ambitious targets for increasing the adoption of EVs, but the ongoing dispute with BYD threatens to hinder progress toward these goals. BYD is one of the largest EV manufacturers in the world and has been a major player in the Sri Lankan market. The company’s vehicles are popular among local consumers due to their affordability and features. However, the motor capacity issue has raised concerns about the accuracy of the company’s declarations and the potential for tax evasion.
Sri Lankan customs officials have been cracking down on undeclared or misdeclared shipments in recent months, as part of a broader effort to increase revenue and combat tax evasion. The dispute with BYD is part of this larger effort, and the company will need to resolve the issue with customs authorities in order to have the detained vehicles released. The situation highlights the challenges faced by governments in balancing the need to promote environmentally friendly technologies with the need to ensure compliance with tax and regulatory requirements.
In order to resolve the dispute, BYD will need to provide documentation and evidence to support its declarations regarding the motor capacity of the detained vehicles. The company may also need to pay any applicable taxes or duties that have been avoided due to the misdeclaration. The Sri Lankan government will need to weigh the potential benefits of promoting EVs against the need to ensure compliance with tax and regulatory requirements. A resolution to the dispute will be critical in determining the future of EV adoption in Sri Lanka and the role that BYD will play in the market.