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Fox Yi Hu

In Canada, fans and foes of Chinese electric vehicles are holding their breath for brands like BYD to hit the market.
Whether they love them or not, they share the hope that Chinese carmakers will help to bring all EV prices down, as affordability becomes a growing concern for consumers.
Companies including BYD, Geely, Nio and Xpeng are preparing to roll out sales locations in Canada, seizing the opportunity of warmer ties between the two countries.
Ottawa struck a milestone trade deal with Beijing in January, as both faced tariff threats from Washington. Part of the deal saw Canada cut tariffs on Chinese EVs to 6.1 per cent – down from more than 100 per cent – from the start of last month, with low-tariff imports capped at 49,000 vehicles a year.
“I fully expect my next car to be a Chinese EV – after they set up shops here,” said John Currie, a university teacher in Toronto who owns a petrol-powered SUV. The electric cars available in the Canadian market were generally overpriced, he said.
As Canada’s economy faced the triple threat of weak growth, job losses and inflationary pressure, car buyers had tighter budgets, said Preston Yuan, a partner at Factor E Motors, an independent Tesla showroom in Vancouver.
“Many consumers will welcome Chinese brands like BYD with open arms, because they offer good value at affordable prices,” he said, adding that the recent surge in oil prices had boosted new and second-hand Tesla sales in British Columbia, “showing how sensitive people are to rising costs”.
Canada lost more than 90,000 jobs in the first quarter of the year, and consumer confidence has been trending down at depressed levels, according to a sentiment index compiled by Bloomberg and Nanos.
With cheaper Chinese brands coming in, I’m sure the existing players will come under pressure to cut prices
Leon Li, Vancouver resident
Yuan said that while Tesla remained the focus at Factor E, the showroom had been exploring opportunities to work with Chinese EV makers.
“Tesla demand stays strong here, but we are open to the possibility of servicing the newcomer Chinese brands as well,” he said.
Leon Li, a 42-year-old Vancouver resident who owns a petrol-powered SUV and a Chevrolet EV, said he was not keen on Chinese EVs but was looking forward to a potential price war.
“With cheaper Chinese brands coming in, I’m sure the existing players will come under pressure to cut prices,” he said. “Getting good value for the money is important to me.”
Li said there were currently no EVs priced below C$30,000 (US$21,894) in Canada, but he hoped rising competition would soon change that.
The Canadian government also appears keen to bring down EV prices. Under the trade deal with China, the proportion of “affordable” cars allowed in each year must gradually rise towards 50 per cent of the 49,000-vehicle import quota by 2030. Being “affordable” means having an import price below C$35,000, but final retail prices will be higher – in some cases by as much as 40 per cent – once shipping costs, dealer margins and taxes are added.
The 49,000 quota for Chinese EVs is the equivalent of about 30 per cent of Canada’s sales of zero-emission vehicles last year, based on figures released by the Canadian government.
Despite the federal government’s backing, the import of Chinese EVs has drawn the ire of Ontario Premier Doug Ford, who called the deal “terrible” for the auto sector in his province.
While the 6.1 per cent tariffs took effect last month, Chinese EV makers have yet to set up their showrooms – with some expected to open in the summer. BYD has hired an Ontario-based consultancy to help launch as many as 20 outlets across Canada, the Globe and Mail reported on March 18.


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Canada slashed tariffs on Chinese EVs from the start of last month, but Chinese brands have yet to set up showrooms


Canada slashed tariffs on Chinese EVs from the start of last month, but Chinese brands have yet to set up showrooms.


China trade deal has Canadians looking forward to cheaper electric vehicles

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Canada slashed tariffs on Chinese EVs from the start of last month, but Chinese brands have yet to set up showrooms

Canada slashed tariffs on Chinese EVs from the start of last month, but Chinese brands have yet to set up showrooms