“革命正发生！日印汽车不再独霸斯里兰卡，中国车来了”

Core Viewpoint - The entry of Chinese automotive brands such as BYD, SAIC-GM-Wuling, and BAW into Sri Lanka is transforming the local automotive market, which has been dominated by Japanese and Indian brands for decades. The demand for electric vehicles (EVs) is rapidly increasing following the lifting of the import ban by the Sri Lankan government, with projections indicating that 30-40% of vehicles on the road could be electric within five years, with over half potentially being Chinese EVs [1][9]. Market Growth Potential - Sri Lanka has limited domestic automotive manufacturing capabilities and has historically relied on imports. The country’s vehicle imports were halted in 2020 due to an economic crisis, but the ban was lifted in February 2025, leading to a surge in imports. In April 2025, the import value of passenger vehicles rose from $3 million in January to $107 million, accounting for 6.4% of the total imports for that month [2][5]. Consumer Preferences and Economic Factors - The shift from gasoline vehicles to electric vehicles is driven by consumers' experiences during the economic crisis, which included fuel shortages and high fuel prices. Although the initial cost of electric vehicles is higher, the long-term economic benefits are appealing to consumers burdened by fuel expenses. For instance, a local resident noted that despite the higher price of an electric vehicle compared to a mid-range Japanese car, it is viewed as a more practical and economical long-term choice [5][6]. Competitive Advantages of Chinese Brands - Chinese automotive brands are gaining traction due to their strong local partnerships and comprehensive after-sales service networks. Brands like BYD, Wuling, and BAW offer warranties of up to eight years and have established efficient maintenance and parts supply systems, which many international brands lack. For example, Tesla has not set up an official dealership in Sri Lanka, while BYD registered 799 vehicles in May, second only to Toyota's 1,345 [6][8]. Future Projections - If current trends continue, it is anticipated that Chinese electric vehicle brands may consider local assembly in Sri Lanka. The shift to electric vehicles is expected to benefit the country economically, as Sri Lanka spends approximately $4.5 billion annually on fossil fuel imports, with 25% allocated to passenger vehicles. BYD is projected to import 2,600 vehicles this year, with an additional 2,700 expected in July [8][9].