Chinese automakers, including Geely and BYD, accelerate push into Canada
Canada lowers entry barriers by scrapping steep tariffs on Chinese EVs and introducing an import quota
Chinese companies expand influence in auto markets worldwide, while tariffs and other countermeasures continue

China’s Geely Automobile Holdings has formally announced plans to begin commercial sales in Canada. With barriers to entry lowered after the Canadian government removed steep tariffs on Chinese-made electric vehicles and introduced a limited import quota, Chinese companies are accelerating efforts to secure local sales networks, infrastructure and production bases. Market observers are watching whether Chinese-made EVs, which have already rapidly expanded their sales presence in Europe, Latin America and Southeast Asia, can also extend their influence in Canada.

Chinese Automakers Set Their Sights on Canada

According to a report on the 15th by British automotive industry outlet inautonews, Geely announced plans to enter the Canadian market in an official press release on the 9th. All dates are local time. The company said it has already established its local organization in Canada and is building a sales and service network ahead of its vehicle launches. “Canada represents an important next step in Geely’s international growth,” said Brian Wu, managing director of Geely Auto Canada. “We will earn consumers’ trust by building strong local partnerships and customer support systems.” Full-scale vehicle sales are scheduled to begin in 2027.

Geely is not the only Chinese automaker preparing to enter Canada. In an interview with Reuters in London last June, BYD Executive Vice President Stella Li said, “We are reviewing which vehicle models to launch in Canada, and actual sales are likely to begin in 2027.” Around the same time, Transport Canada documents also confirmed that BYD had begun procedures to import two passenger vehicle models produced in Shenzhen and Xi’an, China.

Efforts to Secure Infrastructure and Production Bases

BYD is also pursuing plans to build EV charging infrastructure in Canada. Last June, it recruited a business development manager for its “Flash Charging” business in Toronto. The role included △developing a strategy to expand an ultra-fast charging network across Canada △analyzing charging station installation costs and profitability △identifying local partners to handle power grid upgrades, equipment installation and on-site operations △managing charging station construction projects. Flash Charging is an ultra-fast charging technology developed in-house by BYD, with its latest system supporting charging output of up to 1,500 kilowatts (kW). U.S. environmental news outlet The Cool Down (TCD) said, “If Flash Charging technology becomes more widespread, it could ease consumers’ concerns about long-distance driving and charging wait times, while making EV ownership a more practical option for drivers who find it difficult to charge at home.” It added, “Whether BYD can replicate in Canada the charging ecosystem it has built in China will be a key development to watch in the North American EV market.”

Efforts to secure local production bases are also becoming more visible. According to Bloomberg, Patrick Brown, mayor of Brampton, Canada, said last month, “BYD inquired about six months ago about using Stellantis’s Brampton plant to produce buses.” Stellantis had originally been retooling the plant to produce the Jeep Compass sport utility vehicle (SUV), but that work was halted last year when the U.S.-Canada tariff war began. Stellantis subsequently shifted Jeep Compass production to Belvidere, Illinois. In April, Stellantis also held preliminary discussions with Leapmotor, an EV maker based in China’s Zhejiang province, about producing EVs at the Brampton plant.

Removal of Additional Tariffs Lowers Trade Barriers

Chinese automakers’ successive moves into Canada come as the Canadian government eases restrictions on EV imports from China. In January, Canadian Prime Minister Mark Carney announced a trade agreement that included lower tariffs on Chinese-made EVs after meeting with President Xi Jinping in Beijing. Since October 2024, Canada had imposed an additional 100% tariff on Chinese-made EVs on top of the existing 6.1% duty. It agreed to remove that additional tariff and apply the 6.1% most-favored-nation (MFN) rate to up to 49,000 vehicles annually.

The new system took effect on March 1. The Canadian government plans to increase the import quota for Chinese-made EVs, set at 49,000 vehicles in the first year, by 6.5% annually, while allocating 50% of the total quota by 2030 to low-cost EVs with an import price of CAD 35,000 (approximately USD 25,538) or less. The aim is to allow limited market access for Chinese-made EVs while managing the impact on Canada’s domestic auto industry. The Canadian government is also actively encouraging Chinese companies to partner with local businesses to invest in vehicle production facilities and EV supply chains.

Table 1. Canada’s Easing of Import Restrictions on Chinese-Made EVs

Chinese EVs Race Ahead in Global Markets

Market observers are watching whether Chinese-made EVs, which have already expanded their sales presence worldwide, can also establish a foothold in Canada. According to the International Energy Agency’s (IEA) Global EV Outlook 2026, China’s EV exports doubled year on year to more than 2.5 million vehicles last year. Growth has been particularly pronounced in Europe. Data from European automotive market analysis firm Inovev show that Chinese brands sold approximately 795,000 passenger vehicles across 30 European countries last year, up 90% from 417,000 the previous year. Over the same period, Chinese brands’ share of the local new-car market also doubled from about 3% to 6%.

Chinese-made EVs are also penetrating Latin American markets at an accelerating pace. Vehicles produced in China accounted for around 85% of EVs sold in each of Brazil and Mexico last year. Southeast Asia is also emerging as a key market for Chinese EV makers. More than half of the EVs sold in Southeast Asia last year were Chinese-brand vehicles, while local sales of Chinese-made EVs increased by 130% year on year. This sales expansion has continued this year. Last month, global accounting and consulting firm PwC reported that Chinese automakers’ share of the overall new-car market in six major ASEAN countries—Thailand, Indonesia, Malaysia, Vietnam, the Philippines and Singapore—rose from approximately 11% last year to 16% in the first half of this year.

More Countries Impose Steep Tariffs

The problem is that many countries are also stepping up measures to curb Chinese-made EVs. For example, the European Commission conducted an anti-subsidy investigation into Chinese-made EVs for about a year beginning in 2023. In July 2024, it imposed provisional countervailing duties after determining that Chinese government subsidies had distorted competition within the EU market. This was the first large-scale trade sanction against Chinese-made EVs. In October of the same year, following approval by member states, the EU finalized additional tariffs of up to 35.3% on Chinese-made EVs, with rates varying by manufacturer. These duties are imposed on top of the existing 10% vehicle import tariff and were set to apply for five years from October 30, 2024.

Last December, Mexico also approved legislation imposing tariffs of up to 50% on approximately 1,400 products, including vehicles, auto parts, steel and textiles, imported from countries without free trade agreements (FTAs), including China. The measures took full effect on January 1 this year. Tariffs of up to 50% apply to finished vehicles, while many other products face rates of 35% or less. The Brazilian government has been gradually raising import tariffs on electrified vehicles since January 2024. As of July 1, it raised import tariffs on fully assembled battery electric vehicles, plug-in hybrids and conventional hybrids to a uniform 35%.