China's new energy vehicle makers are accelerating their move into Canada as the two countries' new trade arrangement opens the door to greater market access, with leading automakers already moving to establish local sales networks and prepare product launches.
The latest sign of that momentum came as China's Ambassador to Canada Wang Di announced that Lotus, the premium electric vehicle brand under Geely Auto Group, will begin sales in Canada next month. The launch will mark the first Chinese-owned and manufactured EVs to enter the Canadian market under a new bilateral arrangement that allows up to 49,000 Chinese EVs to be imported each year at a preferential tariff rate of around 6 percent.
The agreement, which took effect on March 1, replaced the previous 100 percent tariff imposed in 2024. The annual quota will expand by 6.5 percent each year, reaching about 67,000 vehicles by 2031, providing Chinese automakers with gradually increasing access to the Canadian market.
Besides Lotus, more Chinese automakers are lining up to enter Canada. During her visit to China this month, Canadian Industry Minister Melanie Joly said she met with executives from four Chinese automakers — BYD, Chery, Geely and Shanghai Launch Automotive Technology — all of which expressed interest in exploring joint ventures in Canada as a pathway to local production.
