Canada is once again opening its doors to Chinese-made electric vehicles, marking a significant shift in the country’s EV strategy. Prime Minister Mark Carney has announced plans to reduce the steep 100 per cent tariff on Chinese EV imports—introduced in 2024—back down to six per cent.
The move is already sparking debate. Supporters argue it will bring more affordable, climate-friendly vehicles to Canadian consumers, while critics warn about potential security and safety risks tied to companies with close links to the Chinese government.
Under the new policy, up to 49,000 Chinese-made EVs per year will be allowed into Canada initially—less than three per cent of the total vehicle market, according to Carney. That number is expected to rise to around 70,000 annually over the next five years.
Chinese EVs are not entirely new to Canada. Models from Polestar and Volvo—both Swedish brands owned by Geely—as well as Tesla vehicles manufactured in China, were already available before the tariff increase.
Industry experts believe there is strong demand for more affordable EV options, especially as Canadian consumers face rising living costs.
Why Open the Market Now?
Chinese automakers have transformed the global EV industry in recent years by producing cars, SUVs, and hybrids at significantly lower prices—largely due to government subsidies and massive production scale.
China is home to more than 100 EV brands, though about 15 dominate the market. Major players include Geely, Chery, MG, Wuling, and Tesla, which manufactures several models in China. Last year, BYD overtook Tesla to become the world’s largest EV seller.
Before the 2024 tariff hike, BYD had plans to enter Canada. Those plans were shelved when the federal government aligned with similar U.S. trade measures under President Joe Biden.
Globally, BYD has seen major success outside China—especially in Brazil, where it accounts for roughly 80 per cent of EV sales. Australia and Mexico have also become key markets for Chinese-made EVs.
Will They Be Cheaper?
In many cases, yes. Chinese EVs can cost between $10,000 and $15,000 less than similarly sized models currently sold in Canada.
Lower prices could pressure other automakers to reduce costs as well—making EVs more accessible and helping Canada meet its emissions reduction goals. Currently, EVs remain about 30 to 50 per cent more expensive than comparable gasoline vehicles.
At the moment, Canada has no branded dealerships dedicated to Chinese EV manufacturers. That could change quickly.
BYD, for example, opened dozens of dealerships across Australia after entering the market in 2022 and sold more than 52,000 vehicles there by early 2025. A similar rapid expansion is possible in Canada.
How Do They Compare on Quality and Safety?
Independent testing shows mixed results. In some comparisons, Chinese EVs match or even outperform popular models like the Tesla Model 3 in battery range—though real-world performance depends on factors such as speed, weather, and driving habits.
Safety ratings for Chinese EVs have improved significantly. According to European New Car Assessment Programme rankings, several Chinese-made vehicles were among the safest cars last year, including the BYD Seal, Volvo EX90, and Tesla Model Y.
Cybersecurity, however, remains a major concern. Critics argue that modern vehicles—packed with AI systems, sensors, and data connectivity—could pose national security risks.
