China’s Dongfeng Eyes Canada for its Next Market Expansion

• Dongfeng is the smallest of the “Big Four” state-owned Chinese automakers.

• The company will show some of its electric cars to Canadian journalists and analysts in Montreal this week.

• These models will include the Vigo sub-compact crossover and the Nammi 01 sub-compact hatchback.

After BYD, Geely, and Chery, Dongfeng becomes the fourth Chinese automaker to express interest in selling its electric models in Canada under the tariff exemption signed between Beijing and Ottawa.

Indeed, Dongfeng, the smallest of the “Big Four” state-owned Chinese automakers, says it wants to begin sales in Canada in the coming months.

To increase local awareness of its brand and its products, Dongfeng will present some of its electric models to journalists and industry analysts in an event to be held in Montreal later this week.

Some of the models to be on display include the Vigo, a sub-compact SUV that looks very similar to the new Kia Seltos but features a split liftgate like a Range Rover, as well as the Nammi 01, a sub-compact hatchback.

The first of these two models is claimed to have a range of 471 kilometres according toe the Chinese CLTC testing standard, which is usually quite a bit more optimistic than the EPA standard used in Canada. This means that we can expect an actual range that is closer to 340 kilometers.

The Nammi 01 has a claimed CLTC range of up to 430 kilometers, which should translate to about 315 km with the EPA method.

Given their size and preliminary specifications, the Dongfeng Vigo and Nammi 01 could be genuinely affordable, which is not necessarily a given when looking at the vehicles competitors such as BYD and Geely are planning to import.

While pricing hasn’t been announced, we can get an idea of what to expect by looking at the Australian and New Zealand markets, which have been welcoming electric vehicles for a few years already.

At the moment, the Dongfeng Vigo crossover starts at $37,990 in New Zealand, or about $31,000 in Canadian dollars at current exchange rates.

For comparison, the Nammi 01 (called Box in New Zealand) starts at NZ $29,990, or around $24,400 CAD

This would make both significantly more affordable than existing models currently available, which was a goal of the Canadian government when deciding to allow up to 49,000 Chinese-made EVs into the country per year starting in 2026.

While Tesla, and Polestar to a lesser extent, use up most of the credit alone at the moment, the arrival of Chinese brands such as Dongfeng should create more competition in the segment and drive everyone’s prices down.

In addition, the 49,000 unit cap under which Chinese EVs are only tariffed at 6% (instead of 100%) is set to increase every year and includes a provision to mandate models that are deemed affordable.

It will be interesting to see what our colleagues who will take part in Dongfeng’s Montreal event this week think of the brand’s vehicles.

Source: Automotive News