Independent research · Industry and policy report
2026 Shenzhen APEC pre-summit edition · From import quotas to local manufacturing
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.
Key figures
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
A selection of official and primary sources from the report’s source index, with dates as listed there.
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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