In May, over 2,900 electric passenger vehicles manufactured in China were imported into Canada. Global Affairs Canada data revealed that this was the first month of electric vehicle (EV) imports from China following Prime Minister Mark Carney’s agreement to allow tens of thousands of vehicles into the country at a reduced tariff rate during his visit to China in January.
Although the specific brands and models of the 2,910 cars that arrived in May were not disclosed, Carney hinted at the likelihood of most models being Chinese-made Teslas. Ottawa secured a tariff-quota agreement with China regarding EVs, in exchange for Beijing reducing some duties on Canadian canola.
Previously, Canada had imposed a 100% tariff on Chinese electric vehicles, but now permits up to 49,000 Chinese EVs annually at a 6.1% tariff, along with a maximum six-month quota of 24,500 cars. The reintroduction of federal EV rebates and rising gasoline prices due to tensions in Iran have spurred interest in electric vehicles among Canadian drivers.
Electric Mobility Canada’s President and CEO, Daniel Breton, noted that the influx of Chinese EVs is expected to drive prices down, citing the decrease in the Chevy Bolt’s price as an example. However, the entry of these Chinese-made EVs has raised concerns among Canada’s major automakers—Ford, General Motors, and Stellantis—who expressed worries about the impact on the domestic auto industry and potential cybersecurity risks associated with these vehicles.
Brian Kingston, President, and CEO of the Canadian Vehicle Manufacturers Association, highlighted that China’s lack of adherence to established trade and investment principles poses challenges to the Canadian economy and auto industry.
The introduction of Chinese-made electric vehicles into Canada could bring significant changes to the automotive landscape, as outlined in a detailed report.