Vehicle Tax Structure Distorts Sri Lanka's Hybrid Market: JB Securities 🚗

• July Registrations Drop: Hybrid vehicle registrations fell to 2,288 units in July from 3,023 units in June, driven almost entirely by the SUV segment. • Brand Performance: Toyota and Honda remained the dominant hybrid brands, while BYD expanded its market presence with its Sealion and Denza models. • Policy Impact & Market Distortion: The current tax regime penalizes 2.0-litre hybrid powertrains by using engine displacement as a primary tax determinant. • Consumer Choice Restricted: JB Securities noted this policy favors EV-first vehicles with supporting internal combustion engines, effectively excluding globally acclaimed models like the Toyota Prius, RAV4 Hybrid, and Corolla Cross Hybrid despite their high fuel efficiency and resale value.