Discover how BYD and Chery are building EV dealer networks across Canada after tariff cuts – see the latest market entry plans now!
The race to secure a foothold in Canada’s booming electric‑vehicle (EV) market has intensified. Two of China’s automotive powerhouses, BYD and Chery, are actively negotiating the establishment of independent dealer networks across the country.
Strategic Roll‑out Plan
According to a consultancy tasked with laying the groundwork, both manufacturers aim to create brand‑specific dealerships from coast to coast. The initial focus will be on Toronto’s metropolitan area, with subsequent expansion west to Vancouver and east to Montreal and Calgary.
BYD’s Ambitious Target
Farid Ahmad, CEO of Dealer Solutions Mergers & Acquisitions, told the Globe and Mail that BYD plans to launch roughly 20 dealerships in its first year of operation. This would give China’s largest carmaker a visible presence in Canada’s biggest urban centres, where consumer demand for affordable EVs is on the rise.
Chery Joins the Push
Chery is reportedly following a similar route, exploring potential sites and dealer partnerships alongside BYD. While details remain confidential, both companies are capitalising on recent policy shifts that make market entry more viable.
Policy Changes That Paved the Way
In January, Canada restructured its tariff regime for Chinese‑made EVs, introducing a quota that permits up to 49,000 cars to enter with a reduced duty of just 6.1%, down from the previous 100% rate. The move was part of a broader trade agreement that lowered Chinese tariffs on Canadian agricultural products such as rapeseed, lobster, crab and Dutch beans.
The import quota is set to expand to 70,000 units over the next five years, with more than half projected to be priced below US$35,000. Analysts expect this to spur joint‑venture investment in Canada’s EV supply chain within three years.
Challenges Ahead
Even with lower duties, several hurdles remain before a BYD or Chery model can roll onto a showroom floor:
- Regulatory approvals from Transport Canada and provincial authorities.
- Finalising dealer agreements and financial structures.
- Building service and parts networks to support after‑sales.
Both firms have yet to announce official launch dates or specify which vehicle lines will be prioritised for the Canadian market.
Industry Impact
Market analysts say the entry of BYD and Chery could disrupt pricing and intensify competition in a segment traditionally dominated by North American, European and Korean brands. With more affordable EV options, Canadian consumers stand to benefit from greater choice and potentially lower purchase costs.
Stay tuned as these Chinese EV leaders finalize their Canadian strategies and bring new models to local dealerships.