On May 7, Lotus Cars announced that 18 Lotus ELETRE vehicles produced in Wuhan Economic and Technological Development Zone had departed from Shanghai port bound for Canada. The shipment marks the first batch of Chinese-made all-electric high-performance SUV models exported to Canada since the country sharply reduced tariffs on Chinese EVs earlier this year. First batch of Lotus’ ELETRE vehicles exported to Canada Canada had previously imposed an additional 100% tariff on Chinese-made electric vehicles in October 2024. Combined with the existing 6.1% import duty, the total tariff burden on Chinese EV exports to Canada once reached 106.1%. The tariff hike effectively froze exports almost immediately. Data showed that Chinese EV exports to Canada plunged 92% quarter-on-quarter in the fourth quarter of 2024. In January this year, the Canadian government announced the removal of the additional 100% tariff on Chinese EVs and introduced an annual low-tariff quota of 49,000 vehicles. Models included within the quota are now subject only to the standard 6.1% most-favored-nation tariff rate. Following the policy adjustment, Chinese automakers began repositioning themselves in the Canadian market. 18 ELETRE SUVs to be shipped to Canada On April 24, the Lotus ELETRE officially launched in Canada, with pricing reaching as high as CAD 179,000 ($87,900). All 18 exported vehicles in the latest shipment were manufactured at Lotus’ Wuhan facility. Lotus completed North American certification procedures two years ago. According to the company, it has already established a network of six authorized dealerships in Canada, covering key cities including Toronto and Vancouver, with plans to expand the network to 12 dealerships within the year. 18 ELETRE SUVs to be shipped to Canada However, while Canada has reopened a lower-tariff pathway, restrictions have not fully disappeared. According to a recent report by Bloomberg, Canadian regulators are discussing whether to impose separate quota caps on individual automakers to prevent major players such as BYD and Tesla from rapidly consuming the entire 49,000-unit quota allocation. In terms of scale, the 49,000-vehicle quota remains relatively limited, accounting for less than 3% of Canada’s total new vehicle sales last year. At present, Canada is distributing the quota on a first-come, first-served basis. Applications for the initial 24,500-unit quota covering the March-to-August period have already opened. For Lotus, competition for quota allocation is likely to remain a key challenge even after the reopening of Canada’s lower-tariff import channel.