Canada Is About to Get the Chinese EVs US Can't BuySjoerd van der WalChinese-built electric vehicles are set to hit Canadian shores, with Geely-owned Lotus becoming the first Chinese automaker to begin deliveries under a new trade agreement struck between the countries this past January.China's ambassador to Canada, Wang Di, told Reuters that Lotus vehicles will begin arriving in Canada next month, with a delivery ceremony planned in Montreal. The deliveries mark the first imports under the agreement between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping that permits up to 49,000 Chinese-made EVs to enter Canada each year under preferential tariff treatment.The agreement is also part of Canada's response to the unpredictable nature of its trade status with the United States by courting trade relationships that help to diversify its partners beyond the US.AdvertisementAdvertisementAccording to Reuters, other Chinese automakers are expected to follow. Wang said BYD and Chery are working with Canadian authorities to complete the approvals needed to begin selling vehicles in Canada. Test vehicles from both companies have already entered the country for evaluation under Canadian driving conditions, and Wang said he expects additional Chinese brands to enter the market later this year.JADE GAO - Getty ImagesIn contrast, Chinese automakers continue to face barriers to entry in the United States and parts of Europe. The US has tagged steep tariffs on Chinese-built EVs and tightened restrictions on connected vehicle technology, effectively blocking many Chinese brands from entering the American market.Canada has instead looked to foreign investment and joint ventures with Chinese manufacturers while also continuing to invest in and develop its own domestic EV supply chain. Wang said Chinese automakers remain interested in establishing manufacturing partnerships in Canada but are first focused on building sales and evaluating demand.The agreement could provide Canadian consumers with access to several competitively priced electric vehicles that are unavailable in the United States. Lotus already sells performance EVs including the Eletre SUV and Emeya sedan in other parts of the world, while BYD and Chery offer a wide range of mainstream electric and plug-in hybrid models.AdvertisementAdvertisementBeyond automobiles, Wang said the two countries are working to deepen their trade ties. He predicted Canadian exports to China could more than double in the coming years, including agriculture, energy and liquefied natural gas products.
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