First Chinese-Made EVs Have Landed in Canada and Carney Says More Coming

Chinese-made electric vehicles have started arriving in Canada following an earlier trade deal struck between Prime Minister Mark Carney and Chinese President Xi Jinping in January.

The first shipments have already landed. According to shipping data and sources familiar with the matter, Bloomberg reports hundreds of Tesla vehicles built at the company’s Shanghai factory have come in under the new rules. A carrier ship called the Glovis Treasure also recently anchored outside Vancouver carrying a small number of Lotus Eletre electric SUVs (starting from just $119,990 CAD), a luxury brand owned by China’s Geely (parent of Volvo and Polestar).

Canada previously had a 100 per cent tariff on Chinese EVs that basically shut them out of the market entirely, following a policy first kicked into law by the U.S. Under the new deal, up to 49,000 Chinese-made EVs can enter Canada annually at a far lower tariff rate of 6.1 per cent.

Speaking at the Economic Club of New York last week, Carney acknowledged that Tesla will likely dominate the early shipments but said Canadians will eventually see more affordable options arrive in a controlled way. That tracks with the government’s plan to reserve a portion of the quota specifically for EVs priced under $35,000 by 2027, rising to 50 per cent of the quota by 2030.

The quota currently represents less than 3% of Canada’s total new vehicle market, though the cap is set to grow annually. The feds are still working out how to divvy up the quota between brands so one automaker doesn’t lock up the entire allotment.

Global Affairs Canada data shows 2,910 EVs from China were imported into Canada last month. It’s likely the majority of these are Tesla’s new cheaper Model 3 RWD which starts at $39,490 CAD. They have yet to confirm which automakers made up all the cars.

U.S. lawmakers from Michigan recently proposed a bill to ban Chinese connected vehicles from crossing into the United States, which could affect Canadian owners trying to drive across the border.