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More than 2,900 Chinese-made electric passenger vehicles arrived in Canada during the month of May.
Data from Global Affairs Canada indicates that May was the first month of EV imports from China after Prime Minister Mark Carney agreed to let in tens of thousands of the vehicles under a reduced tariff rate during a trip to the country in January.
It states 2,910 cars arrived in May and more are on the way but it doesn’t indicate which brands or models are arriving. Carney did say at the Economic Club of New York last week that “it looks like” most of the models will be Teslas made in China.
Ottawa reached a tariff-quota deal with China on EVs in exchange for Beijing dropping some duties on Canadian canola.
Canada imposed a 100 per cent tariff on Chinese electric vehicles in 2024, but now allows up to 49,000 Chinese EVs into Canada annually at a 6.1 per cent tariff.
Canada is also imposing a maximum six-month quota of 24,500 cars.
Together with the return of the federal EV rebates and higher gas prices fuelled by the war in Iran, Electric Mobility Canada says more drivers are considering going electric.
“It is pretty obvious that competition is starting to have an impact, which is good for the consumer,” said Daniel Breton, president and CEO of Electric Mobility Canada, a lobby group that promotes electric vehicles.
He expects more Chinese-made EVs arriving in Canada to put downward pressure on prices. Breton said he has already seen the price of vehicles like Chevy Bolt fall.
Canada has cracked open the door to Chinese-made electric vehicles and the impact could be transformational. For The National, CBC’s Chris Brown breaks down how China became the world’s EV leader and what it could mean for the North American automotive industry.
Canada’s big three automakers in a statement said the entry of these EVs “undermines” the domestic auto industry and opens Canadians up to “cyber risks.”
“China does not adhere to many of the rules-based trade and investment principles that have been fundamental to the success of the auto industry and the Canadian economy,” said Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers Association.
