Canada is considering building electric vehicles with Chinese manufacturers instead of just importing them. Chery Automobile Co. is the first Chinese EV manufacturer to announce plans to enter the Canadian market.
As of early Tuesday, Chery plans to launch in Canada by the end of 2026 with one or two models. The Canadian government has also reduced tariffs on Chinese EVs from 100% to 6.1% for up to 49,000 units.
This shift comes as last year, 1.9 million passenger vehicles were sold in Canada, with less than 10% being zero-emission vehicles. Canadian auto parts firms could participate in a joint-venture assembly plant with Chinese EV companies.
The Global Automakers of Canada expressed cautious concern about the impact of Chinese EVs on the Canadian market. They noted potential impacts on Canadian consumers and the long-term stability of Canada’s automotive sector.
Mélanie Joly stated, “We believe that these great Canadian champions can partner with Chinese EV companies to make a Canadian-Chinese car to export it around the world.” Officials have not confirmed the specific models Chery plans to launch in Canada.
The long-term impact of Chinese EVs on the Canadian automotive sector remains unclear as this initiative develops further.