The local distributor of China’s BYD says it plans to sell 3,000 RACCO units in Sri Lanka over the next year, as consumers shift to electric vehicles which provide lower operating expenses compared to fossil fuel alternatives.

“With RACCO, BYD is entering the KEI car segment in Sri Lanka, a category that is already very popular with Sri Lankan buyers,” John Keells CG Auto Chief Executive Officer Charith Panditharatne said.

Kei cars are a category of ultra-compact vehicles engineered in Japan to meet strict dimensions, taking up less road and parking space.

John Keells CG Auto (JKCG) launched the BYD RACCO electric Kei car in Sri Lanka at an introductory price of 11.45 million rupees.

Sri Lanka is the first market outside Japan to introduce the model, following its debut there in July, Charitha Subasinghe, retail head of John Keells Holdings, said.

The vehicle was launched simultaneously across showrooms in Colombo, Kandy, and Galle to ensure immediate island-wide access.

Compact Japanese cars have long dominated Sri Lanka’s vehicle market, with 9,550 Suzuki Wagon-R units and 1,870 Suzuki Spacia units registered in the year to August 2026.

“At its heart, RACCO is a family vehicle: it is cost-effective to own and run, yet highly specified to meet a household’s daily needs and the demands of small businesses,” Panditharatne said.

In Japan, the entry-level RACCO 200 sells for 2.145 million yen, or roughly 4.5 million Sri Lankan rupees, with over 1,500 units already sold.

In Sri Lanka, however, imported vehicles face heavy taxes following currency depreciation and balance-of-payments pressures.

BYD has become the country’s leading electrified vehicle brand since the market reopened, with around 15,000 BYD vehicles now on local roads, according to Ketsu Zhang, Deputy General Manager of BYD’s Asia-Pacific Auto Sales Division.

Excerpt — ECONOMYNEXT