Chinese EV Brands Set to Enter Canadian Market to Lower Prices

In Canada, fans and foes of Chinese electric vehicles are holding their breath for brands like BYD to hit the market. Whether they love them or not, they share the hope that Chinese carmakers will help to bring all EV prices down, as affordability becomes a growing concern for consumers.

Companies including BYD, Geely, Nio and Xpeng are preparing to roll out sales locations in Canada, seizing the opportunity of warmer ties between the two countries. Ottawa struck a milestone trade deal with China in January 2026 to allow electrified vehicles into the Canadian market under a new lower tariff.

The Canadian government has initiated the process to allow Chinese companies to import electric vehicles (EVs) into the country under a new lower tariff and reports are that BYD and Chery are eager to enter the market, along with brands from Geely.

Under that agreement, Canada will lower the tariff rate from 106.1 percent to 6.1 percent on 49,000 electrified vehicles made in China, equal to roughly 2.5 percent of annual new car sales in Canada. That’s for the first year. The quota will increase by 6.5 percent a year to a maximum of 70,000 vehicles by 2030, limiting imports to less than 3.0 percent of the Canadian market share over the short term.

The overarching goal is to offer more affordable EVs in Canada, but the overall quota will also allow for Chinese-made hybrids, plug-in hybrids, and extended-range hybrids, all of which have internal combustion engines as well as electric motors, and batteries. The electrified vehicles do not have to be under the deal’s $35,000 Canadian price cap (about $26,000 U.S.) to enter Canada immediately. The requirement for affordable, sub-$35,000 vehicles will be phased in starting with the 2027 quota year (March 2027). The price refers to the import price, or landing cost, at the border, not the final retail price. In 2027, 10 percent of the imported quota must be under $35,000.

BYD has hired an Ontario-based company to scout dealership locations, says a new report. The Chinese automaker has also registered its production facilities with Transport Canada. Meanwhile, Geely-owned EV maker Zeekr has trademarked its name in Canada.

If all goes to plan, Canadians could be building their dreams soon. Chinese automaker BYD (as in “Build Your Dreams”) has hired an Ontario-based automotive retail consultancy to help establish up to 20 branded dealerships across the country, according to a recent Globe & Mail story.

Other reporting suggests that BYD is the furthest along among Chinese-headquartered automakers in Canada’s regulatory framework, and is the only Chinese passenger-vehicle manufacturer to have registered its production facilities with Transport Canada’s Appendix G pre-clearance registry — a prerequisite for importing vehicles into the country.

Canada Set to Get Its First Chinese-Made EV as Lotus Targets Q3 for Deliveries.

BYD wanted to enter the Canadian market in 2024, but those plans were dropped when Canada introduced a 100 percent tariff on Chinese EVs.