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The Ministry of International Trade expects the number of Chinese-made electric vehicles arriving in Canada to significantly accelerate in the next six months.
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In March, the federal government opened up the market to Chinese-made EVs, allowing 49,000 to enter Canada at a 6.1 per cent tariff rate over the following 12 months. But with the halfway point of the period approaching, about 15,600 Chinese-made EVs have arrived in Canada, or about 31 per cent of the quota.
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Huzaif Qaisar, a spokesperson for International Trade Minister Maninder Sidhu, said the government was expecting a slow start because it takes time for businesses to enter new markets.
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“A lot of (Chinese) companies are doing market research right now,” he said. “In conjunction with that, they’re also doing the (road safety) certification process with Transport Canada and other departments.”
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The Chinese EV import quota formed the core of a larger trade deal that Prime Minister Mark Carney announced with China in January. Canada agreed to remove 100 per cent tariffs on up to 49,000 Chinese-made EVs per year in exchange for China temporarily dropping or slashing some tariffs on Canadian canola and seafood products.
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From the outset, it was clear that new Chinese EV brands would not immediately show up, in part because it can take 12 to 24 months for an automaker to certify its vehicle complies with Canadian safety standards.
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Qaisar said the federal government is assisting Chinese automakers with the safety certification process, although he did not specify how long it could take.
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“We’re making sure they are getting the help they need,” he said. “It won’t take 18 months, (but) we are definitely ensuring it’s a due diligence process.”
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He said about half of the Chinese EVs shipped to Canada so far had a “freight-on-board” value of $35,000 or less. That price does not include customs duties, taxes and other costs, so consumers are paying a higher price for those vehicles.
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So far, many of the imported Chinese-made EVs are ones most Canadians are already familiar with, including ones by Tesla Inc. and Chinese-owned brands Polestar Automotive Holding UK PLC and Volvo Car Group.
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It is also possible that some United States companies such as Ford Motor Co., which manufactures its Lincoln Nautilus Hybrid in China, may have used some of the quota.
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Ford briefly stopped importing the vehicles after Canada announced 100 per cent tariffs on Chinese-made EVs in 2024. It did not respond to requests for comment by the time of publication.
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Other brands could arrive soon. In April, Sidhu posted on social media that he had held meetings in China with BYD Co. Ltd., XPeng Inc. and GAC Aion New Energy Automobile Co. Ltd. about selling vehicles in Canada.