Chinese EVs Are Arriving in Canada
Nearly 400 dealers are already fighting to sell them.
Summary
Canada has cut tariffs on Chinese EV imports to 6.1% with an annual cap of 49,000 units. This move has sparked a surge in interest from Canadian dealerships to represent Chinese brands like BYD, Geely, and Chery. The catalyst was a trade deal between Prime Minister Mark Carney and Chinese President Xi Jinping in January.
Key Points
- Tariff Reduction: Canada slashed EV tariffs from 100% to 6.1%, providing access to the North American market for Chinese automakers.
- Dealer Interest: Nearly 400 inquiries have been received by DSMA, an auto dealership broker in Toronto, from dealers across Canada interested in representing Chinese brands.
- First Imports: Chery and Geely (via Lotus) have already shipped vehicles under the new framework. BYD has also registered vehicles with Transport Canada.
- Price Impact: The tariff reduction could make affordable EVs, currently absent in Canada below C$30,000, a reality.
- Political Response: The Canadian Vehicle Manufacturers’ Association (representing GM, Ford, and Stellantis) has expressed concerns about the impact on domestic automakers.