Chinese EV Makers Rush into Canada: BYD, Zeekr, Chery Expand Amid Lower Tariffs

Chinese electric vehicle (EV) manufacturers are accelerating their expansion into the Canadian market, capitalizing on new trade policies that significantly reduce import tariffs. BYD plans to open 20 sales locations in Canada by 2026, while Zeekr has already begun hiring senior staff for its Toronto operations. These developments follow the introduction of new tariff rules that slash import costs for Chinese EVs from 100% to just 6.1%.

Major Chinese Automakers Enter Canada

Just as Tesla relaunched its Chinese-built Model 3 in Canada, several aggressive Chinese automakers are positioning themselves to enter the market. Geely, Chery, and BYD are all taking steps to establish a presence in the country.

Chery’s Strategic Moves

Chery has brought two Jaecoo E5s SUVs to Toronto, equipped with Ontario manufacturer license plates. These vehicles, identified by Autonews Canada, are an all-electric SUV priced at approximately $37,000 CAD in Australia, where the currency is roughly at parity with the Canadian dollar. While these vehicles are believed to be in Canada temporarily, their arrival follows Chery’s decision to send nearly two dozen local dealer representatives to the Beijing Auto Show to gain firsthand insights into the Chinese market.

BYD’s Ambitious Expansion

According to a recent report, BYD intends to open 20 sales locations in Canada this year. The company is reportedly collaborating with local partners to establish these stores and is also considering building its own factory in the country or acquiring an existing one from an established brand.

Zeekr’s Toronto Hiring Push

Zeekr, another Geely Group brand, is preparing for a local launch in Canada. The company has confirmed that it began hiring for seven senior-level positions in late April, all based in Toronto. These roles span sales, legal, marketing, aftersales, product development, and network development. Additionally, Zeekr is seeking a head of network development to evaluate dealer business plans and establish operational guidelines.

New Trade Deal Slashes EV Tariffs

The urgency behind these expansions stems from a new trade agreement between Canada and China, which reduces tariff rates for 49,000 EVs imported from China from 100% to just 6.1%. However, the quota of 49,000 eligible vehicles will be allocated on a first-come, first-served basis, meaning automakers must act quickly. Only 24,500 permits will be issued in the first six months of the program.