China's BYD Is Preparing To Sell EVs In Canada: Report
China's biggest EV maker is setting its sights on Canada's car market, according to documents filed with the country's government.
Hefty new tariffs should keep Chinese electric cars out of the U.S. for the foreseeable future. But nothing is currently stopping China's flourishing electric vehicle makers from targeting America's closest neighbors.
BYD, China's biggest EV company, is setting its sights on the Canadian car market, Automotive News first reported on Tuesday. If the move comes to pass, it could be yet another step forward in China's quest to dominate the global car market.
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BYD is closing in on the U.S.
China's biggest maker of electric vehicles has grown its manufacturing capacity and global presence at a ferocious pace, but tariffs are keeping it from selling cars in the U.S. China's EV industry has exploded in recent years, and the country now sells some of the most cost-competitive and advanced EVs.
According to Automotive News, lobbyists for BYD registered with the Canadian government in late July. In documents, they said they would "advise on matters related to the expected market entry of BYD into Canada for the sale of passenger electric vehicles, and the establishment of a new business, and the application of tariffs on EVs.” The outlet also reported that BYD representatives have met with Canadian car dealers about setting up dealerships.
BYD didn't respond to a request for comment ahead of publication.
Car companies and governments around the globe have raised concerns about the threat that the epic rise of China's EV industry poses. Thanks to enormous government subsidies and intense internal competition, Chinese car companies have rapidly emerged as fierce global competitors. They're able to churn out new models at a blistering pace and with a significant cost advantage over established players. China has also developed a stranglehold on the supply chain for lithium-ion batteries. By some estimates, Chinese brands will account for one in three vehicles sold in 2030.
Hence the Biden administration's recent move to slap 100% tariffs on EVs imported from China, and its other policies aimed at promoting onshoring and friendshoring of critical EV-related manufacturing.
Canada is considering enacting similar tariffs aimed at checking China's rise, following in the footsteps of the U.S. and E.U. Making sure those tariffs are as friendly as possible to BYD is surely top of mind for the company's new lobbyists.
There are implications here for the U.S. too. Since China's EV companies can't import directly to the U.S., they'll likely look for workarounds to enter the one of the world's largest car markets. That could mean setting up a presence in Mexico and Canada, one auto-industry analyst told Automotive News.
BYD already sells vehicles in North America. In Mexico, it sells passenger vehicles including the hybrid Shark pickup truck. In the U.S., BYD sells both electric buses and trucks, which it produces at a factory in California. However, BYD's North America president said earlier this year that the company isn't planning to enter the U.S. passenger vehicle market.
Contact the author: tim.levin@insideevs.com
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