Canada Opens the Door – And Chinese Brands Are Already Lining Up
Earlier this year, Canada struck a new trade agreement with China that effectively lowered tariffs on Chinese-built electric vehicles. The deal allows up to 49,000 China-made EVs to enter the country at the standard “most-favoured nation” tariff rate.
Predictably, Donald Trump slammed the deal and threatened higher tariffs if Chinese EVs try to cross into the US from Canada. But for now, Ottawa and Beijing are moving ahead, and Chinese brands are already making moves behind the scenes.
According to Automotive News Canada, at least three major Chinese brands are aiming to launch in Canada by 2026. They’re not just talking about it, either – regulatory approvals, dealer networks, and financing deals are already in the works.
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BYD, Chery, and Geely Lead the Charge
Right now, BYD, Chery, and Geely are leading the charge to get their cars into Canadian showrooms. BYD actually had plans to enter Canada as early as 2024, but tariffs put those on ice. Now that the trade deal is in place, they’re dusting off those plans and getting ready to move.
Chery isn’t far behind. Trademark filings from last year show they’re planning to bring in a whole lineup of sub-brands – Exeed, Jaecoo, Omoda, Luxeed, Lepas, and iCar. Some of these names were already making headlines, but more so in other markets where Chery has been expanding rapidly.
Geely already has a foothold in Canada through Volvo and Polestar, but it has now trademarked Zeekr – its premium Chinese brand. If Zeekr launches, it’ll be the first time Geely sells one of its own Chinese marques in Canada.
Before any cars hit the road, these brands still have to clear Canadian certification and lock in local retail partners. Most experts think they’ll lean on established dealer groups instead of trying to go direct-to-consumer. BYD seems focused on teaming up with the big dealer groups, while Chery and Geely seem more willing to work with smaller retailers as well.
Jacob Oliva/Autoblog
The First Wave May Only Be the Beginning
Even if BYD, Chery, and Geely are first out of the gate, they won’t be the only ones for long. Other Chinese automakers are already eyeing Canada – names like Great Wall Motor (GWM) and SAIC Motor, probably through MG, keep coming up. Newer EV players like XPeng and Nio are also building up their global presence, and Canada could be next on their list.
Over the long haul, as many as 15 to 20 Chinese brands could try to break into Canada, much like what’s happened in Australia. Not all of them will make it. Launching in a new market costs real money, and earning buyer trust is a slow process.
Canada’s decision is a big deal because it gives Chinese brands a real entry point into North America. Even if sales start in Canada alone, the bigger play is clear. Once these cars are on Canadian roads, it’s only a matter of time before the rest of the continent takes notice.
Jacob Oliva/Autoblog
