Polestar Relaunches Polestar 2 in Canada Leveraging China EV Import Quotas

Polestar plans to resume sales in Canada in September 2024 of the China-made Polestar 2, leveraging the Chinese EV import quota system implemented by the Canadian government in January this year. Previously, imports of fully built Polestar 2 vehicles had been suspended due to Canada’s imposition of a 100% additional import tariff on Chinese-made new energy passenger vehicles starting in 2024. Under an agreement reached between Canada and China, the high tariffs have been lifted and replaced with an annual import quota of 49,000 units. Polestar Canada confirmed it will utilize this quota to import the Polestar 2. Hugues Bissonnette, head of the brand in Canada, stated that the model’s return will help complete its product lineup and boost EV sales in the Canadian market. Over 7,300 Polestar 2 vehicles are already on Canadian roads. Reservations for the 2027 Polestar 2 opened on June 3, with deliveries expected to begin in September. The vehicle offers an EPA-estimated range of 447 km and starts at CAD 72,700 (including a CAD 2,800 destination fee). Currently, the Polestar 3 and Polestar 4 SUVs are already on sale in Canada. Following Tesla’s resumption in May of Model 3 exports from its Shanghai factory to Canada, Polestar has become another automaker utilizing its Chinese production base to export vehicles to Canada under the quota system. According to data from Global Affairs Canada, 2,910 Chinese-made EVs have entered Canada under the quota so far. The government plans to clear 24,500 units by August 2024, release an equivalent number of quotas between September 2026 and February 2027, and then increase the annual quota by 6.5% to 52,185 units starting March 2027. Industry insiders anticipate intensified competition for quotas beginning in early 2025. Chinese brands such as BYD, Chery, and Geely are currently engaging with local dealers and advancing vehicle certifications in preparation for entering the Canadian market. Additionally, multinational automakers like Nissan are evaluating the possibility of exporting EVs to Canada from their Chinese production facilities under the quota system. Christian Meunier, President of Nissan Americas, revealed that the company plans to export 3,000 to 4,000 affordable all-electric vehicles annually from China to Canada.