Dongfeng Motors Eyes Canadian Market as EV Tariff Quotas Boost China-Canada Collaboration

Earlier this year, Canadian Prime Minister Mark Carney finalized a low-tariff import quota agreement for Chinese-made electric vehicles (EVs), allowing up to 49,000 Chinese EVs annually to enter the Canadian market without being subjected to the 100% surtax. The agreement also includes plans to gradually increase the quota each year, while China simultaneously reduces import tariffs on certain Canadian agricultural products. Against this backdrop, Dongfeng Motor Group is preparing to enter the Canadian market. This week, Dongfeng held an event in Montreal showcasing several EV models, including the Vigo and the Nano BOX 01. The company is currently advancing regulatory certification procedures for its vehicles in Canada and plans to raise local consumer awareness through offline events to pave the way for future sales. According to Julie Mazorra Fernández, head of Beishi Industrial—the company’s Canadian dealership partner—Dongfeng aims to launch two initial models as early as next year. She also noted that establishing a local manufacturing plant in Canada is among Dongfeng’s long-term strategic goals. Previously, in 2024, then-Prime Minister Justin Trudeau imposed steep additional tariffs on Chinese-made EVs, effectively blocking Chinese automakers from entering the Canadian market and prompting Tesla to adjust its supply chain strategy. With the new agreement now in place, Chinese automakers beyond Dongfeng—including BYD and Chery—are also planning to apply for access to the low-tariff quota. During her visit to China last month, Canadian Minister of Industry Mélanie Joly stated that multiple Chinese automakers are currently conducting market research in Canada and exploring potential joint ventures for vehicle manufacturing. Prime Minister Carney also emphasized that the bilateral agreement is expected to attract significant investment from Chinese companies, fostering joint ventures and partnerships with Canadian firms.