Canada Opens Second 24,500-Vehicle Quota for China-Made EVs

• Canada released another 24,500 import permits for China-made electrified vehicles on Sept. 1.

• Unused permits lift potential China-made EV imports to 33,397 during the next six months.

• BYD, Chery and Geely are advancing certification, staffing and dealer preparations for Canadian market entry.

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Canada’s import framework for China-made EVs entered its next phase today, Sept. 1, adding 24,500 more permits as several Chinese automakers prepare for potential Canadian launches.

The federal quota allows for up to 49,000 qualifying vehicles during its first 12 months. Ottawa split that volume into two equal releases, with the first taking effect March 1 and the second becoming available Sept. 1. Vehicles imported under the quota remain subject to Canada’s standard 6.1% most-favoured-nation tariff, a considerably lower rate than the previous 100% surtax imposed on Chinese-made EVs in 2024. The revised policy emerged from a January trade agreement between Ottawa and Beijing.

Demand did not exhaust the first allocation. Global Affairs Canada reported as of Aug. 28 that it had issued quotas for 15,344 EVs and 259 hybrids during the opening six-month period. The department does not identify individual importers.

Unused permits will carry forward. Combined with the latest release, importers could bring in as many as 33,397 China-made EVs during the next six months.

Existing brands have been the early users of the new framework. Tesla began offering a lower-priced Shanghai-built Model 3 in Canada in May. Geely-owned Lotus imported several dozen Eletre performance SUVs during the summer. Lincoln also re-issued the China-manufactured Nautilus hybrid to the Canadian market in August, with pricing starting at roughly $63,000 with fees.

Competition for import capacity could increase as automakers headquartered in China advance their Canadian plans. BYD, Chery and Geely have been pursuing vehicle certification, recruiting employees and engaging prospective Canadian dealers. Vehicles from all three companies have also been spotted on Canadian roads this summer, a clear sign of what’s to come.

The quota continues to operate on a first-come, first-served basis. Global Affairs Canada previously indicated that a longer-term administrative policy would arrive before September. An Aug. 29 notice instead said the existing allocation method would continue until further notice, while the department monitors access among importers.

Available volumes will rise again next year. Under the Canada-China agreement, the annual quota increases 6.5%, bringing the allowance to 52,185 vehicles when the next quota year begins March 1, 2027.

Source: Automotive News