Chinese carmakers rush to Canada as a practice run for US sales

Industry
โดย Reuters·Read original
Summary · why it matters

Chinese automakers including Chery, BYD, Lotus, and Changan are aggressively entering Canada despite a tiny import quota of 49,000 cars annually at a 6.1% tariff, rising to 70,000 over five years. BYD plans to open six dealerships this year and has started compliance procedures to import two passenger cars, while Chery held its first meetings with Canadian dealers in January and aims to launch sales in the fourth quarter. Lotus will open a half dozen dealerships to sell a few hundred cars, and Changan has a team working on a Canada launch. Industry experts say Canada serves as a practice run for the much larger US market, which is effectively closed to Chinese cars by steep tariffs and a connected-vehicle ban, because Canadian consumer tastes and regulations are nearly identical to those in the United States. The moves come amid a diplomatic rift between Canada and the US, with Prime Minister Mark Carney allowing limited Chinese EV imports while distancing the country from Washington.

Impact on stocks 7

Electrification & Mobility▲ · 2 stocks
Chery Automobile Co Ltd
9973
▲ PositiveDemandrelevance

Chery is actively entering Canada, holding dealer meetings and planning Q4 sales, which opens a new market for its vehicles.

Consumer Discretionary▲ · 2 stocks
Consumer Staples▲ · 1 stocks
Others▲ · 2 stocks
BYD Co Ltd Class A
002594
▲ PositiveDemandrelevance

BYD plans to open six dealerships in Canada this year and has started compliance to import two passenger cars, directly expanding its market presence.

Theme Impact 2

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