Over 2,900 electric passenger vehicles manufactured in China were imported into Canada in May. Global Affairs Canada data revealed that May marked the commencement of electric vehicle imports from China following Prime Minister Mark Carney’s agreement to allow tens of thousands of these vehicles into the country at a reduced tariff rate. The report confirmed the arrival of 2,910 cars in May, with more expected to follow, although specific brands and models were not disclosed. Carney hinted during a recent speech at the Economic Club of New York that most of the incoming models are likely to be Chinese-made Teslas.
A tariff-quota agreement on electric vehicles between Ottawa and China was struck, with Beijing agreeing to reduce duties on Canadian canola in return. Canada had previously imposed a 100% tariff on Chinese electric vehicles, but now permits up to 49,000 Chinese EVs annually at a 6.1% tariff, with a maximum six-month quota of 24,500 cars.
The return of federal EV rebates coupled with escalating gas prices due to tensions in Iran is leading more drivers in Canada to consider switching to electric vehicles. Electric Mobility Canada, an organization advocating for electric vehicle adoption, noted that increased competition is beginning to impact the market positively for consumers. The group’s President and CEO, Daniel Breton, anticipates that the influx of Chinese-made EVs will drive prices down, citing examples like the reduced cost of the Chevy Bolt.
In response, Canada’s major automakers expressed concerns about the introduction of these Chinese EVs, stating that it poses a threat to the domestic auto industry and exposes Canadians to cyber risks. Brian Kingston, President, and CEO of the Canadian Vehicle Manufacturers Association, highlighted that China’s trade and investment practices do not align with the principles that have traditionally supported the success of the Canadian auto sector and economy.