by Chinese automakers actively prepare for entry into the Canadian market
Canada is becoming a new battlefield for Chinese electric vehicles. After Tesla resumed sales of its Chinese-made Model 3 in the country, other major players from China are beginning to actively prepare the ground for their own launch. Geely, Chery, and BYD are already taking concrete steps to enter the Canadian market.
Chery tests the market through Jaecoo
As part of its preparation, Chery brought two SUVs of its Jaecoo brand to Toronto, which have manufacturer license plates from Ontario. Autonews Canada identified these vehicles as Jaecoo E5s — fully electric SUVs, with a starting price in Australia of approximately $37,000 (roughly equivalent to the Canadian dollar at current exchange rates).
Although these vehicles are likely only temporarily in Canada, their appearance came shortly after the manufacturer sent nearly two dozen local dealer representatives to the Beijing Auto Show to see the Chinese market firsthand.
Americans pay $37,000 for the cheapest Tesla, while Canada got a Chinese one for $29,000.
BYD plans massive expansion
Chery is not the only manufacturer taking important steps in Canada. According to a report from last month, BYD plans to open 20 retail points this year. The company reportedly intends to partner with local operators to set up these stores. The possibility of building its own factory in Canada or acquiring an existing enterprise from a well-known brand is also being actively considered.
Zeekr gains momentum
In the near future, Canadians may gain access to several new models from the Geely Group. One of the most interesting brands preparing for a local launch is Zeekr. It has been confirmed that the company recently began hiring for seven senior positions at the end of April, all based in Toronto. These are roles in sales, legal support, marketing, and after-sales service. The recruitment also includes roles in product and network development.
Geely is also seeking a candidate for the position of Zeekr network development manager, who will be responsible for evaluating dealer business plans and creating dealer operations guidelines.
New trade agreement opens doors
The rush of Chinese brands to launch in Canada coincides with the signing of an important new trade agreement between the two countries. Thanks to this agreement, tariff rates on imports of 49,000 electric vehicles from China will be reduced from 100% to just 6.1%. Importantly, the quota of 49,000 vehicles will be allocated on a first-come, first-served basis, forcing manufacturers to act quickly. Only 24,500 permits will be issued during the first six months of the program.
This activity by Chinese manufacturers indicates a strategic shift toward North America, despite previous trade barriers. The reduction of tariffs to 6.1% makes the Canadian market extremely attractive, especially given the limited quota that stimulates the rapid deployment of sales networks. For Canadian consumers, this could mean the arrival of a wide selection of affordable electric vehicles, potentially changing the competitive landscape in a market previously dominated by American and Japanese brands. At the same time, rapid scaling will require Chinese companies not only logistical flexibility but also adaptation to local standards and customer preferences.
