Dongfeng, a Chinese car manufacturer, has introduced its electric vehicle lineup in Montreal’s Old Port, joining other Chinese EV companies eyeing the Canadian market. The showcased Dongfeng EV models, including the compact BOX 01 and the electric SUV Vigo, are currently in the process of obtaining Canadian certification to meet safety and regulatory standards.
Julie Mazorra Fernández, the director of North World Industry, the official Canadian distributor for Dongfeng, mentioned that both models will be priced below $35,000 to offer affordable options for Canadian consumers. The company aims to make these models available in the Canadian market by next year.
In 2024, the Canadian government, under Prime Minister Mark Carney, negotiated a tariff reduction on Chinese EVs from 100% to 6.1%. This agreement allows for the annual import of up to 49,000 Chinese EVs with a quota of 24,500 cars every six months, expected to rise to 70,000 cars over five years. Half of this quota will be reserved for vehicles priced under $35,000.
Recent data from Global Affairs Canada indicates that over 3,500 Chinese EVs, predominantly Teslas produced at the Shanghai factory, were introduced in Canada in May under the new tariff rate. Among these vehicles was the Lotus Eletre from Geely, one of the first Chinese EVs to enter the Canadian market.
Dongfeng’s decision to start its Canadian expansion in Quebec is strategic, given the province’s existing consumer acceptance of electric vehicles and cost-effective electricity rates. The company plans to later expand into British Columbia and Ontario, targeting markets favorable to EV adoption.
The aggressive entry of Chinese automakers into Canada is seen as a stepping stone towards accessing the larger U.S. market, as Canada provides a similar regulatory environment and consumer preferences. While the Canadian market is smaller, it serves as a testing ground for Chinese automakers eyeing U.S. expansion.
Canadian automakers have expressed concerns over the entry of lower-priced Chinese EVs, citing potential cybersecurity risks and market competition. However, industry experts believe the increased competition may lead to price reductions and benefit consumers. Details on the availability of Dongfeng’s EV models will be disclosed upon completion of the certification process.