BYD, Chery, Geely Eye Joint Venture Plant in Canada

On June 22, Canadian federal Minister of Industry Mélanie Joly stated that Chinese automakers BYD, Chery, and Geely have all expressed interest in establishing joint-venture vehicle assembly plants in Canada and are seeking access to Canada’s electric vehicle (EV) import quotas. Joly held meetings with representatives from these three companies during her visit to China. The Canadian government requires that if Chinese automakers wish to produce vehicles in Canada, they must form joint ventures controlled by Canadian partners and utilize local supply chains for production. In return, Canada will grant these companies market access. Joly noted that all three automakers have accepted the joint-venture model but declined to disclose further negotiation details. She emphasized that Canada’s objectives in collaborating with Chinese EV manufacturers include attracting advanced new-energy vehicle technologies and safeguarding approximately 500,000 domestic jobs linked to the automotive sector. Earlier this year, Canada and China reached an agreement to eliminate the 100% additional tariffs previously imposed on Chinese-made EVs, replacing them with a quota-based system. Under the new rules, automakers can export up to 49,000 EVs to Canada in the first year, with the annual quota increasing by 6.5% thereafter. Automakers that establish local production facilities in Canada and use domestically sourced components will be exempt from these quota limits, enabling them to significantly expand their sales in the Canadian market.