Close the buckle! The electric vehicle market in this country is about to take a sharp turn.
Prime Minister Mark Carney is reopening Canada to Chinese-made EVs, reducing a 100 percent tariff on imports, imposed in 2024, back to six percent.
There is demand for more affordable, climate-conscious EVs and, for the average customer, having Chinese EVs on the market means “more choice” and “greater technology,” said Max Morris, sales manager at Shift Electric Vehicles in Burlington, Ont.
While some are applauding the opening up of the EV market, others are raising concerns about the safety and security of vehicles from companies linked to the Chinese government. Here’s what you need to know:
How many are there?
China has shaken up the global EV landscape in recent years, offering more affordable cars, SUVs and other hybrid and battery electric cars.
China has more than 100 EV brands, bolstered by heavy subsidies, but there are 15 dominant names, including Geely, Chery, MG, Wulin and US-based Tesla — which also makes some models in China.
A BYD vehicle is assembled on the production line of the company’s factory in Camacari, Brazil, on October 9, 2025. (Joa Souza/Reuters)
But BYD became the world’s largest carmaker last year and even surpassed Tesla as the world’s top seller of electric vehicles.
BYD intended to enter the Canadian market until then Prime Minister Justin Trudeau implemented the steep tariff, in line with a similar US measure under President Joe Biden.
Outside of China, BYD’s biggest market is Brazil, where it accounts for 80 percent of all EV sales. Australia and Mexico are also significant buyers of Chinese EVs.
How many are coming to Canada?
Up to 49,000 EVs a year from China will be allowed into Canada, initially, which Carney says is less than three percent of the overall auto market.
This will increase to around 70,000 over five years.
There were already Chinese EVs in Canada before the 100 percent tariff – exported by Polestar and Volvo, both of which are Swedish companies owned by Geeley, and Tesla.
There seems to be sufficient demand for cheaper Chinese vehicles in Canada.
An Abacus Data survey, released last year on behalf of the Canadian Energy Centre, suggests most Canadians wanted a lower tariff that would improve consumer affordability (53 per cent) or no tariff (29 per cent) on Chinese EVs.
How fast can they arrive?
We don’t have an exact timeline and don’t know what models might be available.
But the vehicles could arrive at Canadian ports in a few weeks, says Addisu Lashitew, an associate professor at McMaster University’s DeGroote School of Business.
“Chinese EV makers can ramp up production and ship quickly, and BYD even operates its own cargo ships that can further shorten transit times,” he said in an email to CBC News.
(AFP/Getty Images)
The hurdle, he says, will be regulatory approval and other compliance steps.
That’s something the federal government may want to speed up to avoid mutual delays in getting Canadian canola and other products back into the Chinese market with lower duties, he says.
Currently, China is expected to reduce its tariffs on March 1
Lashitew says he would not be surprised if new Chinese EVs arrive by March or April.
Will they be cheaper than other EVs?
It depends on the make and model, but Chinese EVs can cost $10,000 to $15,000 less than those of a similar size and range that are already popular in Canada.
One of BYD’s best sellers, a short-range compact car known as both the Seagull and Dolphin Mini, can go for less than $30,000.
That could be attractive to first-time and returning EV buyers, says Morris at Shift Electric Vehicles, which specializes in used models.
“People who are buying these Chinese EVs may already have an EV and are looking to change things up,” he said, “Maybe they’re not happy with their current car or maybe their current car maker.”
This, in turn, puts more used EVs on the market which are also more affordable, he says.
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Lashitew says he will become “in charge” of other automakers to lower their prices, make EVs more accessible to consumers and ultimately help Canada move toward its emissions reduction goals.
“With EVs still around 30 to 50 percent more expensive than comparable gasoline cars, lowering trade barriers would significantly ease the affordability constraint,” he said.
Who will sell them?
Currently, there are no branded retailers for EVs made by Chinese companies.
But with Canada rolling out the welcome mat, those companies can move quickly.
BYD has opened dozens of dealerships across Australia since entering the market in mid-2022 — and had sold more than 52,000 vehicles there by the start of this year.
People charge their Tesla vehicles inside a mall in Shanghai in 2017. (Chandan Khanna/AFP/Getty Images)
How do they compare?
Price is one thing, but consumers also want quality.
In the graph above, you can see that two Chinese brands have exceeded their advertised range compared to their popular Western counterparts when it comes to battery range.
Motortrend in 2024 pitted several Chinese brands against the popular Tesla Model 3, also produced in China, and compared the distance they could drive on a fully charged battery.
Some Chinese manufacturers have outgrown the Model 3, though the outlet noted that travel range depends on factors such as driver speed.
Cold weather shortens battery life and causes charging to take longer, but after testing 67 vehicles in extreme cold, review site ArenaEV said three Chinese brands, including a model from BYD, outlasted a similar Tesla Model Y.
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Are they safe – and safe?
Safety ratings for Chinese EVs have improved greatly, InsideEVs reports.
Citing rankings from the European New Car Assessment Program, several Chinese EVs were among the safest last year, including the BYD Seal 6, the Volvo EX90 and the Tesla Model Y.
But when it comes to cyber security, Carney is facing questions about allowing Chinese-made vehicles in Canada after previously calling China a threat.
Opposition Leader Pierre Poilievre criticized the Prime Minister on the safety issue, as did Ontario Premier Doug Ford, who called Chinese EVs “subsidized spy cars.”
Andreas Schotter, a professor of international business at the Ivy Business School in London, Ont., says Carney needs to take this seriously.
“This is a very big concern for me when it comes to these types of vehicles that rely heavily on artificial intelligence with their more modern features and digital data transfer,” he said.
But he says he is “confident” the federal government will address the issue in a “sophisticated way.”