Buckle up! The electric vehicle market in this country is about to take a sharp turn.
Prime Minister Mark Carney is reopening Canada to Chinese-made EVs, lowering a 100 per cent tariff on imports, imposed in 2024, back to six per cent.
There’s demand for more affordable and climate-conscious EVs and, for an average customer, having Chinese EVs in the market means “more choice” and “greater tech,” said Max Morris, sales manager at Shift Electric Vehicles in Burlington, Ont.
While some are applauding the EV market opening up, others are raising concerns about the safety and security of vehicles from companies tied to the Chinese government. Here’s what you need to know:
Prime Minister Mark Carney announced a trade deal with China to allow up to 49,000 Chinese electric vehicles into Canada. In return, Ottawa expects Beijing to drop canola seed duties to 15 per cent by March.
How many are there?
China has shaken up the global EV landscape in recent years, offering more affordable cars, SUVs and other battery-powered and hybrid electric automobiles.
China has more than 100 EV brands, bolstered by heavy subsidies, but there are 15 dominant names, including Geely, Chery, MG, Wulin and U.S.-based Tesla — which also makes some models in China.
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But BYD surpassed Tesla as the world’s top EV seller last year.
BYD intended to break into the Canadian market until then-Prime Minister Justin Trudeau implemented the steep tariff, in line with a similar U.S. measure under President Joe Biden.
Outside of China, BYD’s biggest market is Brazil, where it accounts for 80 per cent of all EV sales. Australia and Mexico are also significant buyers of Chinese EVs.
How many are coming to Canada?
Up to 49,000 EVs a year from China will be allowed into Canada, initially, which Carney says is less than three per cent of the overall car market.
That will increase to approximately 70,000 over five years.
There were are already Chinese EVs in Canada prior to the 100 per cent tariff — exported by Polestar and Volvo, both of which are Swedish companies owned by Geeley, and Tesla.
There appears to be sufficient demand for cheaper Chinese vehicles in Canada.
An Abacus Data poll, released last year on behalf of Clean Energy Canada, suggests most Canadians wanted a lower tariff that would improve consumer affordability (53 per cent) or no tariff at all (29 per cent) on Chinese EVs.
How soon could they arrive?
We don’t have an exact timeline and we don’t know which models might be available.
But vehicles could arrive at Canadian ports in a matter of weeks, says Addisu Lashitew, an associate professor at…
Read More: Chinese EVs are coming to Canada. How soon will they be here? How much will
