Independent research · Industry and policy report

Canada–China EV Landscape: Industry and Policy

2026 Shenzhen APEC pre-summit edition · From import quotas to local manufacturing

Summary

Canada now allows China-origin electric vehicles to be imported within a quota. This report sets out how the quota, tariff and subsidy rules work, and notes that whether local manufacturing makes sense still depends on market demand, product plans, investment returns and manufacturing capability.

It also clarifies points that are easy to misread: under Notice 1168, complete knock-down kits that have the essential character of a complete EV and are substantially manufactured in China can still be treated as China-origin; an import permit does not make a China-made EV eligible for the federal EVAP incentive; and at the research cut-off, the proposed repeal of the EVAS ZEV requirements had not been verified as final.

On the industry side, the report keeps Geely Auto’s October 9 announcement — Canadian sales planned from 2027, with no Canadian plant or manufacturing joint venture disclosed — separate from media reports on Chery’s and BYD’s Canadian plans. It also reviews overseas contract-manufacturing precedents, Canadian manufacturing and supplier capabilities, market-access requirements and U.S. connected-vehicle rules.

Topics covered

  • Import quota, permits and tariffs
  • Federal and provincial EV incentives and regulation
  • Canadian EV demand and registration data
  • Chinese automakers’ Canadian plans and overseas manufacturing precedents
  • Market access, U.S. rules and vehicle data

Key figures

Figures as the report states them

Each figure keeps the scope and caveats given in the report. They measure different things and are not interchangeable.

  • 49,000

    Total quota for the first quota year (2026-03-01 to 2027-02-28), covering China-origin EVs as defined by tariff classification.

  • 6.1%

    Most-favoured-nation tariff within the quota. The 100% EV surtax was removed on March 1, 2026; without a permit, or once the quota is used up, it cannot be assumed that paying a higher duty allows import.

  • 16,206

    Quota used — Global Affairs Canada administrative figures as of October 30, 2026. Not retail deliveries or brand sales.

  • 10.7%

    ZEV share of new vehicle registrations in Canada, Q2 2026: 58,811 new ZEV registrations, including BEVs and PHEVs.

Sources

Primary sources

A selection of official and primary sources from the report’s source index, with dates as listed there.

  1. Global EV Outlook 2026: executive summary (external site)

    International Energy Agency (IEA) · 2026 edition

KI · RESEARCH STATEMENT

Independent research

This report is independent research and commercial analysis compiled mainly from public sources. It does not represent the position or commitments of any government, company or investor. Naming a company does not indicate an affiliation or a client, partner or representative relationship.

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