Chinese EV companies are starting their engines to enter the Canadian market.
Driving the news: Chery is laying the groundwork to become the first Chinese automaker to sell mainstream passenger vehicles in Canada, per the Globe and Mail, wasting no time following Mark Carney’s decision to dramatically reduce tariffs on Chinese-made EVs.
Three sources who work in the auto industry told the Globe that recruiters messaged them on LinkedIn looking to fill roles in support of Chery’s Canadian expansion.
Catch-up: Under Canada’s new strategic partnership with China, Chinese-made EVs will be tariffed at a rate of 6.1% (down from 100%), with a maximum of 49,000 vehicles allowed in annually, about 3% of Canada’s car market. In five years, that number will jump to 70,000.
By 2030, half of the annual quota will be reserved specifically for EVs that cost $35,000 or less.
Why it matters: Chinese automakers are the global leaders in making quality EVs on the cheap. Even though they’ll be limited to how many cars they can sell, their looming arrival should be a kick in the pants of North American automakers to find ways to lower EV prices.
Yes, but: There’s a chance Chinese EVs do little to advance the market as buyers shun the cars over security concerns. Boycottin’ Doug Ford’s nightmare could also come true, and cheap Chinese vehicles could tank the domestic auto industry. Talk about a crapshoot.—QH