The Floodgates Open: Chinese EVs Land In Canada

Chery and Geely have started shipping EVs and PHEVs to Canada, with thousands more scheduled to land on Canada’s shores.

Chery EVs and PHEVs in Canada

Photo by: Simply Gregster EV / YouTube

Iulian Dnistran

By: Iulian Dnistran

May 11, at 4:35am ET

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Some of the first Chinese-branded EVs and PHEVs have been shipped to Canada.
Chery delivered several cars from its portfolio, and Geely sent over 18 high-end Lotus Eletre SUVs.
Canada slashed import tariffs on Chinese cars from 100% to 6.1%, imposing a 49,000-vehicle annual cap.

Well, that was pretty fast. Some of the first Chinese electric and plug-in hybrid vehicles have landed in Canada, after the United States’ northern neighbor decided to slash import tariffs from 100% to just 6.1% in January.

Chery and Geely are apparently among the first Chinese automakers to deliver cars on the ground in Canada, with the former shipping models from the Jaecoo, Omoda, and Exelantis brands, according to a YouTuber who spotted the vehicles in a parking lot earlier this month. Last week, Geely-owned Lotus shipped 18 Eletre high-end electric SUVS to the country, Automotive News reported. Geely says it is the first Chinese automaker to export cars to Canada under the new trade framework.

According to a YouTube video published at the beginning of the month by Simply Gregster EV, Chery’s cars have had their badges taped up, but some of them are already on manufacturer plates. The Jaecoo J5 crossover, Omoda 9 plug-in hybrid SUV, and Exelantis ES sedan were among the cars spotted in a Toronto parking lot.

In total, Chery has reportedly shipped approximately 150 cars to Canada, as part of the initial phase, according to CleanTechnica. However, it’s worth noting that these models will not be sold directly to customers and will instead be used for testing and certification purposes, as well as for test drive programs, the outlet reports.

The next phase in Chery’s Canadian expansion plan allegedly includes the shipping of an additional 1,000 cars within the next three months. The first 10 dealerships are reportedly in the works and will be ready by the end of June.

Meanwhile, Geely’s luxury Lotus SUV has already passed certification under Canada Motor Vehicle Safety Standards, according to the automaker. Lotus has six franchised dealerships that have opened their doors in March, according to Automotive News. Six more dealers will be added by the end of the year.

Lotus debuted the Eletre in Canada in 2024, but the latest batch is the first one to set sail after the trade deal was inked in January. After the tariff drop, the Eletre's price in Canada was slashed by roughly 50%.

The Lotus Eletre became 50% cheaper in Canada after the import tariffs were reduced in January.

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While this might not seem like a big deal, the U.S. finds itself in a tricky position: sandwiched between two countries that have allowed the free flow of affordable, Chinese-made cars. Meanwhile, American car shoppers have to live with $1,000 payments, increasing gas prices, and a car industry that has mostly lost interest in developing affordable EVs—losing billions of dollars as part of their strategy changes.

Canada’s policy shift is not without its limits, though. Despite slashing import tariffs, the country has imposed an annual 49,000-vehicle import cap, which means that not all Chinese automakers will get a slice of Canada’s car market. However, it’s clear that the biggest players in the game are not wasting any time in establishing a foothold here.