BYD, Chery and Geely working toward Canadian vehicle sales beginning in late 2026.
Canada permits 49,000 China-built EV imports under new trade agreement and quota system.
Analysts estimate up to 20 Chinese automakers could eventually pursue Canadian market entry.
Three Chinese automakers are well and ready to enter the Canadian vehicle market as early as late 2026. Talks are happening this week between interested parties between Chinese manufacturers and Canadian dealer groups.
Decisions ranging from how to distribute the incoming cars to safety, and homologation are underway with automakers such as BYD, Chery, and Geely are being made now. On top of regulatory certification, retail network planning, details on financing partnerships required to begin selling vehicles in Canada are being ironed out. Jason Zhao, director of Asian market development at DSMA, said the companies expect to complete the groundwork in time for initial vehicle shipments by the end of this year.
24,500 China-Built EV Permits Available in Initial Allocation Starting March 1
The preparations follow a reset in Canada–China trade relations announced in January. Under the agreement, Canada will allow imports of 49,000 electric vehicles produced in China under the most-favoured-nation tariff rate.
Global Affairs Canada opened the permitting process for the EV quota on March 1, allocating half of the available imports for 2026. Permits during the first six months are being distributed on a first-come basis.
Despite the policy change, none of the three automakers are positioned to begin shipments immediately. Vehicle certification for the Canadian market remains unfinished, and homologation can take significant time depending on how much regulatory testing is required.
Zeekr X | Photo: ZeekrIndustry consultant Stephen Beatty, a former Toyota Canada executive, said the timeline varies widely. Manufacturers starting without previously certified vehicles may require a year or longer to meet Canadian safety and emissions standards.
Companies with models already approved for the market could and will likely move faster. Tesla, along with Geely-controlled Volvo and Polestar, are commonly viewed within the industry as having advantages under the quota framework because their vehicles already comply with Canadian regulations.
BYD previously explored a Canadian launch in 2024 but halted preparations after Canada imposed tariffs on Chinese electric vehicles that year. Following the January trade agreement, a BYD executive described the development as a positive signal that prompted internal discussions about reviving Canadian expansion plans.
Trademark filings also suggest Chinese brands are positioning themselves for entry. Chery applied to register multiple brands in Canada last year, including Exeed, iCar, Jaecoo, Lepas, Luxeed and Omoda. Geely trademarked its premium electric brand Zeekr in Canada in 2025, potentially to be sold alongside its existing Volvo and Polestar operations.
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As certification progresses, the companies are negotiating retail distribution and financial service partnerships needed for vehicle sales and after-sales support. According to Zhao, BYD is expected to pursue partnerships primarily with large dealership groups, while Chery and Geely appear more open to working with retailers of varying sizes.
Interest among Canadian dealers is mixed. Roughly half of large dealership groups are actively pursuing agreements, while others are taking a cautious approach. Smaller and mid-sized dealer groups have shown strong interest, viewing Chinese brands as an opportunity to add electrified vehicles to their portfolios.
Analysts expect additional Chinese automakers to examine the Canadian market. Great Wall Motor and SAIC Motor, potentially through its MG brand, are frequently mentioned as established manufacturers evaluating expansion. Another possibility is Leapmotor which finds itself under the Stellantis umbrella. Newer electric-vehicle companies such as XPeng Motors and Nio are also increasing their international presence.
Industry observers estimate that between 15 and 20 Chinese automakers could eventually attempt to enter Canada, though not all are expected to maintain a lasting foothold. For many companies, Canada may serve as a launchpad to reach the U.S. and Mexico if they are not already present in that market.
Source: Automotive News
