Canada has opened a second import window for Chinese-built electric and hybrid vehicles, expanding the available quota to 33,397 units after unused volumes from the first period were carried over. The move follows a January agreement between Ottawa and Beijing that established a new strategic partnership, permitting up to 49,000 Chinese EVs to enter the country annually at a most-favoured-nation tariff rate of 6.1 percent.
Between March 1 and August 31, a total of 15,603 hybrid and electric vehicles were imported, falling 8,897 short of the 24,500 maximum allowed for that initial period, according to Global Affairs Canada. The second period opened on September 1 and allows for an additional 24,500 vehicles, with the unused volumes from the first period added to the total.
Global Affairs Canada did not break down imports by manufacturer, but Automotive News reports that Tesla is believed to be the largest beneficiary so far. The company imports a Chinese-made Model 3 Premium, which starts at $39,490 CAD. Lincoln, Lotus and Polestar have also benefited from the arrangement. Lincoln began importing the Nautilus Hybrid in August, which is believed to account for the 259 hybrid sales recorded in that month.
While established Western brands have been the early winners, traditional Chinese manufacturers are preparing to enter the market. Automotive News reports that vehicles from BYD, Chery and Geely are in the process of being certified and have been spotted testing in Canada. Some of these models could be available to Canadian consumers as early as next year.
The quota system operates on a first-come, first-served basis, creating an incentive for manufacturers to import vehicles quickly before competitors exhaust the available allocation. However, the Canadian government has indicated it will monitor the process to ensure equitable access to the low tariff rates among interested parties.
The arrangement marks a notable shift in Canada's approach to Chinese vehicle imports, which had previously faced higher tariffs and stricter market access conditions. The 6.1 percent most-favoured-nation rate is significantly lower than the tariffs applied to Chinese vehicles in other Western markets, reflecting the new strategic partnership between the two countries announced in January.
Industry observers will be watching whether the second period sees fuller utilisation of the quota than the first, and whether the entry of BYD, Chery and Geely reshapes the competitive landscape for electric and hybrid vehicles in Canada.