EVwire brief: Maninder Sidhu, Canada’s International Trade Minister, met with BYD, XPeng, and GAC in Guangzhou to discuss possible EV market entry into Canada under a new import quota system.
The policy allows up to 49,000 Chinese EVs annually to enter Canada at a reduced 6.1% tariff, down from 100%. The visit follows a January trade agreement between Canada and China tied to broader tariff reductions.
“This visit to South China is about creating new opportunities for Canadians at home and strengthening a relationship that works for both our countries.”
BYD produces affordable BEVs, like the Seagull, pictured here
Context:
The meetings focused on how Chinese automakers can enter Canada under the new quota framework while meeting local regulatory and supply chain requirements. The Canadian official emphasized long-term investment opportunities, including potential manufacturing and collaboration within the country.
The quota system stems from a bilateral agreement often referred to as the “EVs-for-canola” deal. Under the pact, Canada reduced tariffs on Chinese EV imports to 6.1% for up to 49,000 vehicles annually, while China lowered tariffs on Canadian canola imports to 15%, down from about 85%.
The visit marks the first official trip to South China by a Canadian minister since 2018. It also follows Canadian Prime Minister Mark Carney’s earlier visit to Beijing.
Xpeng primarily competes in the mid-market with vehicles like the P7+ sedan, pictured here
Chinese automakers explore Canada expansion
Chinese EV makers are already evaluating next steps. BYD has indicated it is studying the Canadian market for a potential manufacturing facility, with a preference for fully owned operations rather than joint ventures.
However, Canadian officials have stated that any new auto investments must use local labor and parts. Additional pressure comes from the United States, where officials have warned of possible tariff retaliation if Canada becomes a pathway for Chinese EVs into the U.S. market.
Source: Government of Canada, CNEV Post
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