The Lotus Eletre electric SUV is confirmed, but other automakers are also actively exploring importing EVs

In January, the federal government announced a reduction in tariffs for Chinese-built EVs from 100 per cent to a most-favoured-nation rate of 6.1 per cent, on a quota of 49,000 per year. Since then, speculation has run rampant over which Chinese automaker will be the first to bring vehicles to Canada. 

Canada has already imported Chinese-built vehicles from Lotus, Polestar, Tesla and Volvo. Now, with these new regulations, many brands — some never seen in North America — have made it known they are probing the possibility of entering the Canadian market. 

One brand has finalized plans. But with the import permit process now open, here’s what we know about the automakers exploring a path into Canada.

BYD

In an interview with Bloomberg News earlier this month, the brand’s Executive Vice-President Stella Li said BYD is considering building a factory in Canada. Li also suggested the automaker would be interested in taking over a legacy carmaker, much like Geely did with Volvo, Polestar and Lotus.

“We’re open to every opportunity we have,” she said. “We’ll see what benefits us.” Li also said that no deal was currently in the works. 

BYD is the only Chinese automaker with no previous presence in Canada that already has pre-clearance for passenger car import through the Government of Canada’s List of Recognized Vehicle Importers.

Chery

The largest automaker in China by vehicle export volume, Chery told Automotive News it is also considering the “important” Canadian market. 

“Our priority is to ensure that any potential introduction is approached thoughtfully,” Chery spokesperson Tianyi Zhang said in an email.

Chery filed trademark paperwork in Canada last year for several of its models, but it has yet to confirm how or when it will enter the market.

“We have been closely studying the Canadian market and are evaluating a range of potential pathways for future development, including partnerships with local stakeholders,” said Zhang.

The Globe and Mail also reported that Chery is actively recruiting personnel in Canada.

Geely

Andy An, CEO of parent company Zhejiang Geely Holding Group Co., told Bloomberg News this week that the company expects certification soon from the Canadian government for certain Geely-branded vehicles.

“We’re not only considering the Canadian market, but also Brazil, South America, Eastern Europe and Southeast Asia,” An said. “Geely’s globalization is mostly through exports right now, but we will look to localize production.”

Geely’s China-based car brands include Proton, Zeekr and Lynk & Co., among others.

Lotus

The Geely-owned British sports car brand still has a headquarters and factory in the U.K., but it also builds the all-electric Eletre SUV and Emeya sports sedan in Wuhan, China. Company CEO Feng Qingfeng told the Economic Observer earlier this month that it was pausing exports to the Middle East due to the ongoing U.S.-Iran conflict. That could free up supply for Canada.

“We will be the first Chinese brand to enter Canada [under the new tariff],” said Feng. “The Canadian market opportunity is too precious to miss. Since we’ve taken the lead, we must capitalize on this advantage. The growth in Canada may compensate for some of our losses in the Middle East.”

The Eletre was already available here before the original 100 per cent tariffs came into effect in 2024. Paul Simoes, the general manager at Gentry Lane in Toronto – a Lotus dealer — told Electric Autonomy yesterday they will be receiving two demonstration vehicles in late summer and taking orders for the SUV. The Eletre will start at $119,900. 

Lotus already has six dealerships in Canada, and Feng said it will open around 12 more this year. 

Polestar

The Swedish brand, owned by Geely, had been importing Chinese-build Polestar 2 sedans to Canada up until the 2024 tariff increase, then pivoted to the Polestar 3 and Polestar 4 SUVs. The company is planning to begin production of a second generation of the Polestar 2 in 2027 in China, according to an Automotive News interview with spokesperson Mike Ofiara. But Polestar is “still evaluating” if the car will make its way to the Canadian market.

While Canada has retaliatory tariffs of 25 per cent on U.S.-built vehicles, the automaker is planning to source more Polestar 3 SUVs from its South Carolina plant, with plans to limit the tariff cost for consumers. The Polestar 4 comes from its South Korea factory and is unaffected by tariffs.

Tesla

While the company hasn’t offered comment on Canadian tariffs, it quietly removed inventory of U.S.-built Model 3 sedans from its Canadian website after the federal government’s tariff announcement. With Canadian retaliatory tariffs, it would be more prudent for Tesla to import sedans built at its Gigafactory Shanghai instead, keeping inventory of the Model 3 built in Fremont, California for the U.S. market.

Volvo

At the Canadian International Auto Show in Toronto in February, Volvo Canada Managing Director Matt Girgis told Electric Autonomy that the Geely-owned brand is looking at the possibility of imports from China. Volvo used to import the Chinese-built EX30 electric SUV until the 2024 tariffs. The EX30 now comes from Belgium. 

“The EX30 is still produced out in China, same with other cars that we have,” said Girgis. “Some cars we sell in North America, some we don’t. Some are specific to the Chinese market. But for us now, it’s about investigating the opportunity and seeing if there is something we can do there, if we should do so.

“We’re looking at everything right now,” said Girgis. “On one side, the cars have to be North American certified, right? So we need to make sure that they check that box. And then, there’s a whole bunch of questions you need to answer around freight and logistics. Is it possible with the factory suppliers? All that kind of stuff. But the investigation is ongoing.”