It has been barely two months since Ottawa slashed tariffs on Chinese-made electric vehicles from 100 per cent to 6.1 per cent, and the scramble for the Canadian market is already well underway. At least three of China’s largest automakers are hiring staff, filing trademarks, scouting retail locations, and pushing vehicles through Transport Canada’s certification process — all at a pace that has caught parts of the domestic auto industry off guard.

The starting gun was the January 16 trade agreement between Prime Minister Mark Carney and President Xi Jinping, which created a quota allowing 49,000 Chinese-built EVs into Canada each year at the reduced rate. The first window opened March 1, admitting up to 24,500 vehicles through August. In exchange, China lowered tariffs on Canadian canola, lobster, peas, and crab. The deal also requires Chinese automakers to establish joint ventures for vehicles or batteries within Canada inside three years.

At the time, Carney framed the agreement as more than a tariff deal. “In many respects the most important element is the beginning of discussions and expectation of Chinese investment in Canada, and partnership in Canada to produce vehicles over time,” he told reporters in Beijing.

BYD moves fastest

BYD, the world’s largest EV manufacturer, is moving fastest. The company has hired Dealer Solutions Mergers & Acquisitions, a Markham, Ontario-based consultancy, to find locations for approximately 20 branded dealerships within its first year. Toronto’s Greater Toronto Area is the primary target, with expansion planned for Vancouver, Montreal, and Calgary. BYD had shelved Canadian plans in 2024 when the 100 per cent tariff made the market unviable. Within weeks of the January deal, those plans were back on the table.

Jason Zhao, director of Asian market development at DSMA, said preparations are well advanced. “We expect the vehicles will start landing by the end of this year,” he told Automotive News.

Chery, China’s top auto exporter, is taking a different approach but moving just as quickly. The company has filed Canadian trademarks for five brands — Omoda, Jaecoo, Exeed, iCar, and Luxeed — and LinkedIn recruiters began approaching Canadian auto industry professionals in January about roles in vehicle engineering, electrical architecture, and regulatory certification. Chery is establishing a headquarters in the Toronto area and targeting consumer sales before year-end. Unlike BYD, which is courting large dealership groups, Chery appears open to working with retailers of varying sizes, potentially giving it access to markets outside major urban centres.

Geely trademarks Zeekr

Geely, which already operates in Canada through its ownership of Volvo and Polestar, has trademarked its premium Chinese brand Zeekr — the first time it would sell one of its own Chinese-origin marques here. Geely CEO Andy An has publicly confirmed the Canadian market entry. “Geely’s globalization is mostly through exports right now, but we will look to localize production,” An told Bloomberg, signalling that Canadian manufacturing could follow.

One Chinese-built brand has already beaten all three to the punch. Lotus, owned by Geely, currently operates six authorized Canadian dealerships and plans to double that number to 12 by the end of 2026. The company is preparing to launch the Eletre, an electric SUV manufactured at its Wuhan plant, with Canadian deliveries expected in the third quarter. The tariff reduction is expected to cut the Eletre’s Canadian price roughly in half.

Lotus CEO Qingfeng Feng has been blunt about the opportunity. “The Canadian market opportunity is too precious to miss,” he said in March. “Since we’ve taken the lead, we must capitalise on this advantage.”

Dealers line up

The frenzy extends beyond manufacturers. According to industry sources, roughly half of Canada’s large dealership groups are actively pursuing franchise agreements with Chinese brands. Smaller and mid-sized dealer groups have shown strong interest as well, viewing the new entrants as an opportunity to add electrified vehicles to their portfolios at a time when legacy automakers are scaling back EV commitments.

The federal government, for its part, is pushing for deeper integration. Industry Minister Mélanie Joly has publicly urged Canadian companies to partner with the incoming Chinese automakers. “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,” Joly said in February.

Not everyone is sold

Not everyone is convinced the rush is wise. Magna International, Canada’s largest auto parts manufacturer, was Joly’s top candidate for a joint venture partner. A Magna executive declined, saying the company prefers to remain a “neutral global partner” — though Magna already assembles XPeng vehicles at its plant in Graz, Austria.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, has been the most vocal critic. “We have to remain vigilant so that this doesn’t become a permanent foothold,” he told BNN Bloomberg on the day the deal was announced. In a separate interview with the Globe and Mail, Volpe warned: “This is not the global south where you dump product. If you want to be a partner and be a part of it, then you’re going to have to grind it out like everybody else.”

Others see the deal as a necessary corrective. “The federal government can leverage the China deal with complementary measures aimed at bringing in more affordable EVs from other carmakers,” wrote Trevor Melanson of Clean Energy Canada, arguing the quota could drive down EV prices across the board — not just for Chinese brands.

A shrinking market, a widening door

The Chinese brands are arriving into a Canadian EV market that has been contracting. Sales fell 25 per cent in 2025 and dropped another 37 per cent in January 2026, pushing EV market share down to just four per cent. The combination of high sticker prices and the withdrawal of provincial incentives has left a gap that Chinese manufacturers — whose vehicles are typically priced $10,000 to $15,000 below comparable Western models — are eager to fill.

The quota’s first 24,500 slots will be allocated by August. With at least four brands now racing to get certified and set up retail networks, the question is no longer whether Chinese EVs will arrive in Canada. It is how many will be here by Christmas.