BYD electric cars await loading onto the vehicle carrier BYD Shenzhen at Taicang Port in Suzhou, China, in April 2025. About 16,200 Chinese EVs have entered Canada under the country’s quota as of Sept. 30.-/AFP/Getty Images
Canadians should expect to see more Chinese electric vehicles on the streets in 2027 as automakers from China obtain federal government certification for their cars, International Trade Minister Maninder Sidhu says.
Under a deal struck this year, Prime Minister Mark Carney broke with the United States by allowing up to 49,000 Chinese-made EVs into Canada at a low tariff. Canada and the United States both imposed a 100-per-cent tariff on these vehicles back in 2024.
But only about 16,200 Chinese EVs have entered Canada under the quota as of Sept. 30, according to a Global Affairs Canada website. The first quota period runs to Feb. 28 next year.
There are few Chinese-brand EVs among the arrivals this year so far. Mr. Sidhu acknowledged most of the quota used so far reflects imports from U.S. auto maker Tesla’s Chinese production facilities.
A number of high-end EVs from Lotus, a brand owned by China’s Geely Group, were also reportedly shipped to Canada earlier this year under the quota.
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Mr. Sidhu said a number of Chinese EV makers are still going through the Canadian government’s certification process for selling different models in Canada. He predicted most will have finished obtaining approvals by the last half of 2026.
By the first quarter of 2027, “You’ll see more cars in terms of affordable vehicles coming from China into our market,” Mr. Sidhu told reporters during his visit to the Association of Southeast Asian Nations summit in Manila.
He also addressed the lack so far of any announcements of Chinese auto maker investments in Canada.
Back in January, Mr. Carney’s government announced a strategic partnership with China and said it expected significant Chinese auto investment in Canada “within three years.”
Nothing has materialized so far, however.
In June, Industry Minister Mélanie Joly met with four Chinese companies in China about the possibility of them building electric vehicles in Canada. The four companies – BYD, Chery, Geely and Shanghai Launch Automotive Technology – had been examining possible investments in Canada. Ms. Joly said Shanghai Launch’s proposal includes a partnership with British auto maker Austin Motor Co.
The push to attract Chinese investment is an effort by the Carney government to save the Canadian auto industry as it faces an uncertain future because of protectionist U.S. trade policy.
Earlier this month, Mr. Sidhu met with BYD, Chery and Geely during a trip to China.
He said he believes Chinese EV makers are still interested in the possibility of investing in Canada.
The minister said he pressed auto manufacturers in China on building in Canada with Canadian content.
“My conversation with them was: ‘How are you going to utilize Canadian supply chains, Canadian workers, to eventually build those vehicles in Canada,’” he said.
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Mr. Sidhu said he asks Chinese carmakers about replicating their European car manufacturing operations in Canada.
“I ask them how they can replicate that in Canada with Canadian supply chains, with Canadian workers.”
The minister said Chinese companies are still studying the Canadian market before making decisions on building here. “They need to be able to understand the market before anybody dives in and makes those billion-dollar investments to open up a plant to manufacture vehicles in Canada.”
Mr. Sidhu pointed out Chinese carmakers are already making ancillary investments in Canada, “whether it’s in charging infrastructure or building up dealerships, and then hopefully they’ll make a decision from there.”
Canada is allowing up to 49,000 Chinese EVs into its market at a tariff rate of 6.1 per cent. The quota is slated to rise each year and would total 67,000 by 2031.
Mr. Carney’s decision to admit Chinese-made EVs has angered the Trump administration, which has been pushing Canada and Mexico to align external tariffs against the same targets as the United States.
Back in January, when Canada announced the deal, U.S. Trade Representative Jamieson Greer said the Canadian government’s decision to allow Chinese electric vehicles at a low tariff rate is “problematic” and that Canada may come to regret the decision.
“I think in the long run, they’re not going to like having made that deal,” Mr. Greer told CNBC.