Chinese EV Manufacturers BYD and Gely Accelerate Plans for Canadian Dealerships
Put this in the USMCA (CUSMA) elimination/negotiation file. Europe has already been the visible example of what happens when you open your market to low price Chinese EVs.
With the recent agreement by Canadian Prime Minister Mark Carney, Chinese auto manufacturers are now rushing to establish the dealerships, before the Beijing-Canada deal becomes an issue in the USMCA negotiation.
China is NOT going into Canada because they foresee a great market of Snow Mexicans purchasing their low price EVs. They are going into Canada as a proactive measure to establish a North American footprint with an eye toward the USA.
(VIA MSM) – BYD and Chery are accelerating plans to establish a dealership network in Canada after the country introduced a quota allowing tens of thousands of Chinese-made EVs to enter at reduced tariffs. The rollout will begin in Toronto before expanding to other major cities, with BYD targeting about 20 dealerships in its first year. This marks a significant new front in North American EV competition, as Chinese automakers seek growth outside the U.S., where prohibitive tariffs keep them out.
Canada’s updated trade policy allows 24,500 Chinese-made EVs annually at a reduced 6.1% duty, giving BYD and Chery a rare North American entry point. This follows China’s surge to become the world’s top vehicle exporter, with similar pushes into Mexico, Europe, and Latin America. The quota’s scale is modest but strategically valuable for testing market response and building brand awareness.
The companies will launch in Toronto before moving into Vancouver, Montreal, and Calgary. BYD aims for around 20 dealerships in its first year, using consultants and internal teams to secure prime sites. While the network could strengthen visibility in key urban markets, experts warn the quota’s limited volume may test the viability of multiple outlets.
With U.S. tariffs exceeding 100% effectively barring entry, Canada offers Chinese automakers a platform to establish presence, gauge consumer interest, and potentially influence future trade talks. Similar strategies have been used in Europe, where Chinese EV makers have gained ground despite strong local competition. Success in Canada could pave the way for local assembly or increased quotas. (read more)
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