Three major Chinese automakers — BYD, Chery and Geely — are actively hiring, scouting for dealership locations and registering trademarks in Canada after the country cut tariffs on Chinese-made electric vehicles from 100% to 6.1%. However, none of them have yet started selling cars.
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The biggest beneficiaries of the new quota system so far are Tesla and, to a lesser extent, Polestar — companies that already have established brands and sales infrastructure in Canada.
Canada's trade deal with China, established by Prime Minister Mark Carney in January, created a quota system that allows up to 49,000 Chinese-made electric vehicles into the country per year at the standard 6.1% most-favoured-nation tariff. That quota was based on the number of Chinese electric vehicles, primarily Tesla and Polestar vehicles, imported into Canada before the 100% tariffs in 2024.
The first 24,500 import permits became available on March 1 on a first-come, first-served basis, with the quota increasing to 70,000 units per year by 2030.
The deal opened up opportunities for Chinese brands that had been blocked since Canada imposed 100% additional taxes on Chinese electric vehicles in 2024. Three companies are now preparing to enter the market.
BYD is the most aggressive, having hired a consulting firm in Markham, Ontario, to find locations for 20 brand-name dealerships across Canada within its first year. Three locations in the greater Toronto area are already under discussion, with plans to expand to Vancouver, Montreal and Calgary. BYD is expected to bring the Atto 3, Seal, Dolphin and Seagull models to Canada, with estimates suggesting the Seagull could cost around C$25,000 and the Dolphin around C$31,000.
The company has also considered building a manufacturing facility in Canada or acquiring an existing car manufacturer.
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Geely is taking a more measured approach. Its premium division Zeekr posted six senior leadership positions in Toronto in late April, signaling plans to launch the mainstream Geely name in Canada first. A Geely Group CEO has confirmed an entry into the Canadian market and mentioned the possibility of local production.
Chery has filed trademark applications in Canada for various sub-brands, including Exeed, iCar, Jaecoo, Lepas, Luxeed and Omoda. The company began hiring Canadian staff in January, and two Chery Jaecoo E5 have been spotted in Ontario with manufacturer plates.
Geely-controlled Lotus is the only Chinese-made brand to launch under the new quota so far, introducing the Eletre SUV with a starting price of C$119,900, a significant reduction from the previous C$313,500 price tag under the 100% tariff. However, this is a low-volume luxury offering, not a mass-market entry.
The Chinese electric vehicle models most likely to become available in Canada within the next 12 months include:
From Chery: The Omoda 5 EV (a sporty compact crossover) and the Jaecoo E5, both spotted testing in Ontario. Chery sells the Omoda 5 for around C$30,000 in Australia.
From Geely: No specific models have been confirmed for Canada yet, but the company's Chinese lineup includes affordable sedans, SUVs and plug-in hybrids built on the same SEA platform that the Zeekr uses.
None of these models are expected to hit Canadian showrooms until late 2026 at the earliest. Building dealership networks takes time, vehicle certification is still in progress, and the quota's priority licensing system creates its own hurdles.
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While Chinese brands are still hiring and looking for locations, Tesla has already made its move. The company launched the Shanghai-built Model 3 Premium RWD in Canada with a starting price of 39,490 Canadian dollars — about 29,000 US dollars.
