In May, Canada welcomed over 2,900 electric passenger vehicles manufactured in China. Global Affairs Canada data reveals that this marked the first month of electric vehicle (EV) imports from China following Prime Minister Mark Carney’s agreement to allow tens of thousands of these vehicles into the country at reduced tariff rates, a deal struck during his visit to China in January.
The report indicates that 2,910 EVs arrived in May, with more expected in the future, although specific brands and models have not been disclosed. Prime Minister Carney hinted at the possibility of most models being Tesla vehicles produced in China during a recent speech at the Economic Club of New York.
Under a tariff-quota agreement between Ottawa and Beijing, Canada agreed to allow up to 49,000 Chinese EVs annually into the country at a 6.1% tariff rate, in return for China reducing duties on Canadian canola. A maximum quota of 24,500 cars over a six-month period has also been set.
The resurgence of federal EV rebates and rising gasoline prices, partly due to tensions in Iran, have spurred interest in electric vehicles among Canadian drivers. Electric Mobility Canada anticipates that the influx of Chinese-made EVs will lead to price reductions, citing observations of decreased prices for vehicles like the Chevy Bolt.
In response to the growing presence of Chinese EVs in Canada, major automakers Ford, General Motors, and Stellantis voiced concerns about the potential impact on the domestic auto industry and cybersecurity risks. Brian Kingston, CEO of the Canadian Vehicle Manufacturers Association, highlighted the challenges posed by China’s departure from established trade and investment norms critical to the success of the Canadian automotive sector.