The electric vehicle market in Canada is set for a significant shift as Prime Minister Mark Carney has decided to reduce the tariff on Chinese-made EV imports from 100% to six percent. This move aims to cater to the growing demand for more affordable and environmentally friendly EV options in the country.
Max Morris, the sales manager at Shift Electric Vehicles in Burlington, Ontario, believes that the introduction of Chinese EVs will provide consumers with more choices and advanced technology. However, concerns have been raised regarding the safety and security of vehicles from companies associated with the Chinese government.
China has been a major player in the global EV market, boasting over 100 EV brands, with prominent names such as Geely, Chery, MG, Wulin, and Tesla. BYD, a Chinese automaker, even surpassed Tesla as the world’s top EV seller last year.
Under the new agreement, up to 49,000 Chinese EVs will be allowed into Canada annually, gradually increasing to around 70,000 over five years. Despite the previous 100% tariff, Canadian consumers were already exposed to Chinese EVs from companies like Polestar and Volvo.
While the exact timeline for the arrival of these new Chinese EVs is uncertain, Addisu Lashitew from McMaster University anticipates potential shipments within weeks. The regulatory clearance process remains a significant hurdle, but Lashitew believes that the federal government should streamline the process to avoid delays in reciprocal trade agreements.
One of the key attractions of Chinese EVs could be their affordability, with prices potentially $10,000 to $15,000 lower than similar models already popular in Canada. However, these vehicles may not qualify for the federal government’s consumer rebate on EVs due to the absence of a free-trade agreement with China.
As Chinese EVs enter the Canadian market, questions about their safety and cybersecurity have emerged. While safety ratings have improved, concerns about potential security risks have been raised by political leaders and experts. Andreas Schotter, an international business professor, emphasizes the importance of addressing cybersecurity issues associated with these vehicles.