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ARTICLE · 30 MARCH 2026

Entering Canada's EV Market: Eight Lessons For Chinese Automakers

Gowling WLG
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Canada's electric vehicle (EV) market is at a turning point. Prime Minister Mark Carney's new strategic partnership with China reverses the previous 100% tariff on Chinese-made EVs...

CanadaTransport
Victoria Flaherty (Articling Student)
Victoria Flaherty (Articling Student)
Nancy X. Deng
Nancy X. Deng
Thomas Timmins
Thomas Timmins
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Canada's electric vehicle (EV) market is at a turning point. Prime Minister Mark Carney's new strategic partnership with China reverses the previous 100% tariff on Chinese-made EVs, capping imports at 49,000 units per year at a most-favoured-nation (MFN) tariff rate of 6.1%. These imports will be split into two six-month tranches of 24,500 units each on a first-come, first-served basis.

There is significant opportunity in the EV market. Canada's EV adoption rate sits at approximately 15%. This number is well behind European peers, and the growth trajectory is steep. Further, Canada has historically served as the entry point for foreign automakers breaking into North America. Hyundai entered Canada in 1983 and built its brand there before expanding south. In Australia, a comparable economy with no tariffs on Chinese EVs, Chinese-manufactured vehicles captured 77% of the EV market within five years.

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