BYD, Chery, Geely Plan JV Plants in Canada to Secure EV Import Quotas

On June 22, Canada’s federal Minister of Industry, Mélanie Joly, stated that Chinese automakers BYD, Chery, and Geely have expressed interest in securing Canadian electric vehicle (EV) import quotas and are open to exploring the establishment of joint-venture vehicle assembly plants in Canada. Joly held talks with representatives from these three companies during her visit to China. The Canadian government is actively promoting investment in its automotive sector, offering market access on the condition that Chinese automakers partner with Canadian capital to form Canadian-controlled joint ventures and utilize local supply chains if they choose to produce vehicles in Canada. Joly noted that all three companies have accepted this joint-venture model, though she did not disclose specific negotiation details. Canada’s objectives include attracting advanced new-energy vehicle technologies and safeguarding approximately 500,000 domestic jobs linked to the automotive industry. Earlier this year, Canada eliminated the 100% additional tariff previously imposed on Chinese-made EVs and replaced it with a quota-based system: each automaker is initially allowed to export 49,000 vehicles in the first year, with annual quota increases of 6.5% thereafter. Companies that opt to build local manufacturing facilities in Canada and incorporate domestically sourced components can exceed these quota limits and boost their sales volumes.