Canada is shifting from a protectionist stance to potentially building electric vehicles with Chinese manufacturers on its soil. The Canadian government is considering partnerships with companies like Chery Automobile Co. and BYD to produce these vehicles domestically.
Chery is the first Chinese EV manufacturer to announce plans for the Canadian market. The company aims to introduce one or two models by the end of 2026. This move comes as Canada reduces tariffs on Chinese EVs from 100% to 6.1% for up to 49,000 units.
Last year, Canadians bought 1.9 million passenger vehicles, but less than 10% were zero-emission vehicles. The reduced tariffs may encourage more sales of electric vehicles, boosting the adoption of green technologies.
Canadian auto parts firms could participate in a joint venture assembly plant with these Chinese companies. This collaboration aligns with Canada’s goal of increasing domestic production and supporting local businesses.
The Global Automakers of Canada expressed cautious concern about this shift. They highlighted potential impacts on Canadian consumers and the long-term stability of the automotive sector.
Mélanie Joly, Canada’s Minister of Foreign Affairs, stated, “We believe that these great Canadian champions can partner with Chinese EV companies to make a Canadian-Chinese car to export it around the world.” Officials have not confirmed specific details about which models Chery will launch in Canada.
This development marks a significant change in Canada’s approach to foreign automotive investment. As the global market evolves, Canada seeks to adapt and remain competitive in the electric vehicle space.
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