BYD looks to enter the Canadian market

BYD is preparing for its first exports of electric cars to Canada - despite the Canadian government's plans to introduce special tariffs on China-made electric cars. The Chinese manufacturer already offers vehicles in Mexico but not the US.

To that end, BYD filed a regulatory document earlier this month with the Canadian federal and Ontario governments to “advise on matters related to the expected market entry of BYD into Canada for the sale of passenger electric vehicles, and the establishment of a new business, and the application of tariffs on EVs.”

It is not clear when BYD officials met with government representatives or what timeline BYD has in mind for entering the Canadian market. However, according to Automotive News, “BYD has recently met with Canadian dealers about establishing local dealerships.”

This comes as Canada could follow in the US’ footsteps and impose tariffs on electric cars made in China. The nation’s auto industry and its workers “face unfair competition from China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards,” as per a statement Deputy Prime Minister Chrystia Freeland’s office released on 24 June. It then opened a month-long public consultation period on 2 July, the outcome of which should be made public soon.

The US and the EU already imposed special tariffs on Chinese EVs, even if they are still provisional in Europe. In the US, the special tariffs take effect from 1 August. The Trudeau government is concerned that the trade barriers with its partners could lead to China exporting even more to Canada.

This is apparently not discouraging BYD. According to the above-mentioned document, Canada is one of the company’s next target markets. BYD does not sell its cars in the US, but it does in Mexico. The Chinese carmaker plans to sell around 50,000 vehicles there this year – including hybrid vehicles such as the Shark pickup model, which BYD has been selling in Mexico since May.

The North American market is likely to become even more of a focus in the coming years due to the construction of a plant in Mexico, which BYD is considering. With the planned factory, the Chinese are, of course, not primarily looking at the local market but the US. The US, Canada, and Mexico form the NAFTA free trade region, which would allow BYD to import its cars built in Mexico into the US and Canada duty-free.

autonews.com (paywall), reuters.com