BYD to Launch 20 Canadian Dealerships This Year Following Historic EV Deal

Chinese electric vehicle giant BYD is hitting the gas on its Canadian expansion, planning to open 20 sales locations across the country in 2026. The move comes as Ottawa shifts its strategy, looking toward Chinese investment to diversify the national auto industry and decrease its heavy reliance on the U.S. market.

“The overture of Canada is a very important one,” said Alfredo Altavilla, a former Fiat Chrysler executive now advising BYD, in a recent interview with Bloomberg. He noted that the company moved almost immediately to establish a local sales network once the door was opened.

This expansion is the direct result of a major policy shift earlier this year. For a long time, Canada used high tariffs to keep Chinese-built EVs out of the market (copying the U.S.; Washington says Chinese EVs won’t be able to cross the border into the country though). However, in January 2026, the federal government reached a trade agreement with Beijing that allows up to 49,000 Chinese electric vehicles to enter Canada annually.

In exchange, Canada is courting Chinese investment to help bolster its domestic manufacturing. BYD is already looking beyond just selling cars; the company confirmed last month it is actively considering building a Canadian factory or even acquiring an established global automaker to further its reach.

BYD’s entry is expected to bring much-needed competition to the affordable EV segment, which is currently dominated by more expensive American and European models. In Canada, these new Chinese models will likely qualify for significant government incentives that help lower the sticker shock for buyers.

The federal government currently offers up to $5,000 off the purchase of eligible zero-emission vehicles under $50,000. Depending on where you live, you can stack this with local incentives (such as $2,000 off EVs in Quebec). Update: But for EVs made in China, this federal rebate does not apply.

With BYD known for producing electric and plug-in hybrid models at lower price points than many competitors, the combination of a cheaper base price could be a game-changer for Canadian car buyers.

Are you ready to buy a BYD if and when they set up shop in Canada?