by WANG Zhen
Canada will allow up to 49,000 Chinese-made electric vehicles a year to enter the country at the 6.1% most-favored-nation tariff, Prime Minister Mark Carney said on Friday at a press conference in Beijing's Ritan Park.
Canadian officials have indicated the quota could rise to around 70,000 units over the next five years, although no timetable, upper limit or adjustment mechanism has been set out in public documents.
The 49,000-unit quota broadly matches China's EV exports to Canada in the year before Ottawa imposed a 100% additional tariff on Chinese-made electric vehicles in October 2024, which lifted the combined import duty from 6.1% to 106.1%. The quota represents less than 3% of Canada's annual new-car sales, according to the Prime Minister's Office.
Figures from the China Passenger Car Association (CPCA) show that China exported 41,700 new-energy passenger vehicles — including EVs and plug-in hybrids — to Canada in 2023, up 751% year on year. Exports totaled 13,200 units in the first half of 2024, a 500% increase. China's exports to Canada fell after the tariff hike, according to CUI Dongshu, secretary-general of the CPCA.
Before the additional duties, Tesla exported Model Y and Model 3 vehicles to Canada from its Shanghai factory, while most other shipments came from the China-built Polestar 2, a Swedish premium EV brand controlled by Geely Holding.
The policy specifies only a first-year quota, leaving unclear how volumes may rise in later years, whether there will be a stable cap, or how quotas will be allocated among brands. "How large the quota ultimately becomes and how it will be divided among automakers remain unclear," Cui said.
For now, he said, Tesla and Polestar are likely to be the main beneficiaries.
Unlike most Chinese brands that have yet to enter Canada, Tesla has already established local sales, after-sales services and a Supercharger network. Polestar relies on online direct sales and offline experience stores, with after-sales services largely supported by Volvo Group's network.
Carney also said that more than half of Chinese EVs imported within five years would be priced below C$35,000, targeting the mass-market segment. Cui said Chinese homegrown brands could meet Canadian demand for more affordable EVs, noting that Canada lacks a large homegrown auto industry.
Multiple media reports said Canada's industry minister Mélanie Joly met in Beijing with executives from BYD, Chery and Magna International. The meetings were seen as part of Canada's efforts to engage companies with vehicle and supply-chain capabilities that could potentially invest and manufacture locally.
