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7,100 orders in hand and 2,300 autos sold: JKH promises more models
View(s):By Kapila Bandara
John Keells Holdings says its new energy vehicle business has “exceeded expectations’’, drawing more than 7,100 orders and that 2,307 vehicles have been sold.
“A few new models will be launched over the next few months, and that could help to maintain momentum (of sales) or improve it,” John Keells Holdings Chairman Krishan Balendra told a recent investor webinar after announcing the group financials for the first quarter ended June 30.
JKH Group financials were released just days before the opening of the ‘City of Dreams Sri Lanka’ integrated resort.
JKH reported that ‘City of Dreams Sri Lanka’, which has a casino, booked a Rs 1 billion loss for the quarter.
On Friday, Sri Lanka Customs agreed to release 991 BYD autos detained for a month due to an electric motor capacity dispute and applicable duty, on the condition of an Rs 3.6 billion state bank guarantee and interest payment, as well as cooperation with a Customs investigation, after JKH mounted a legal challenge in the Court of Appeal.
Subsidiary John Keells CG Auto (Pvt) Ltd (50% stake) sells BYD new energy vehicles in a joint venture with the Chinese company. The collaboration was inked in November 2023 in Shenzhen, southern China.
About 1,000 autos were detained by Customs. The motor power dispute was specifically related to one model.
JKCG Auto released a statement after the court granted relief but did not mention the value of the bank guarantee. JKCG Auto said it is “committed to cooperating fully with Sri Lanka Customs to facilitate the release of the vehicles and the clearance of all future consignments in accordance with regulatory requirements.”
As for orders for vehicles, Mr Balendra told investors the order backlog is higher than expected due to the “unexpected
volume”. He could not say the exact order backlog.
Showrooms have been opened in Ampara and Kurunegala, in addition to Colombo and Kandy, while also expanding the auto range. The BYD ‘Shark’, a pick-up, was introduced in May.
Different models of vehicles will aim to capture different customer segments at various “pricing points in the ensuing quarters’’, JKH reported.
As the business gained ground in the new EV segment, the business also drew the ire of a gaggle of largely unregulated importers of second-hand vehicles.
In its statement after the court ruling, JKH said that “the manufacturer’s certificate serves as the source document verified by Sri Lanka Customs for vehicle clearance. The certificate issued by BYD for the specific models under detention has been duly provided for all consignments imported by JKCG.”
The charging network is installed in 20 Keells supermarkets.
Revenue and profits are recognised when the vehicles are sold. Attributable profit of JKH in the first quarter of financial year 2025/26 was a negative Rs.803.6 million versus a negative Rs.868.2m in the comparable period of the previous financial year.
Total debt increased by about Rs 15b quarter to quarter to Rs 225.3b, but net debt grew by about Rs 10b to Rs 126.5b.
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