Canada Cuts EV Tariff to 6.1%, Tesla Wins First Move
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- Canada dropped its tariff on Chinese-built EVs from 100% to 6.1% under a quota deal struck by PM Mark Carney in January, allowing up to 49,000 vehicles per year, growing to 70,000 by 2030, with the first 24,500 permits released March 1 on a first-come, first-served basis.
- Tesla launched the Shanghai-built Model 3 Premium RWD in Canada at C$39,490 — down from C$79,990 for the previous Long Range AWD — and industry estimates suggest it could capture 7,000–10,000 of the first 24,500 permits, roughly 29–41% of the initial allocation.
- BYD hired a Markham, Ontario-based consultancy to scout 20 dealership locations in its first year, with three Greater Toronto Area sites under discussion and plans to bring the Seagull (~C$25,000) and Dolphin (~C$31,000) to Canada.
- Geely posted six senior leadership roles in Toronto in late April — including Head of Sales, Marketing, and Network Development — with listings referencing the "Geely Auto Brand" rather than Zeekr, signaling a mainstream launch before the premium sub-brand.
- Chery filed Canadian trademark applications for Exeed, iCar, Jaecoo, Lepas, Luxeed, and Omoda, began recruiting Canadian staff in January, and has had two Jaecoo E5 EVs spotted testing in Ontario with manufacturer plates.
- Lotus, the only Geely-controlled brand to actually launch under the new quota, priced the Eletre SUV at C$119,900 — a dramatic drop from C$313,500 under the old 100% tariff — though it remains a low-volume luxury play, not a mass-market entry.
- Polestar and Volvo, both Geely subsidiaries, are weighing whether to shift Canadian sourcing back to China; Polestar told Automotive News Canada it is "still evaluating" reintroducing the Polestar 2, with no firm timeline for a decision.
Why it matters: The quota was politically framed as a path to affordable Chinese EVs for Canadian consumers, but Tesla — a US company shipping from its Shanghai factory — has captured the first-mover advantage with a C$39,490 Model 3. The 49,000-unit annual cap may not be large enough to accommodate Tesla, Polestar, Volvo, BYD, Chery, and Geely once they all arrive, meaning the real competition for affordable EVs shifts from showroom floors to Global Affairs Canada permit allocation.
