Chery Auto and Geely Auto have recently rolled out a series of concrete moves to advance their market layout in Canada, marking that Chinese automakers’ “North America Springboard” strategy, which takes Canada as the fulcrum. China has officially moved from the preliminary preparation stage to the accelerated implementation phase.
Chery’s two overseas-focused brands, Omoda and Jaecoo, have officially announced their entry into the Canadian market by the end of 2026, positioning their product lines on premium electric and hybrid SUVs. The two brands have launched preview websites in Canada to collect information from interested users, and are simultaneously building a nationwide dealer network, with multiple mature models already launched in European, Australian and New Zealand markets set to be introduced first.
Geely also formally established Geely Canada Inc. in October, kicking off the construction of its local retail and service system, with its first batch of models scheduled to hit the market in 2027.
The electric vehicle tariff quota agreement reached between China and Canada in early 2026 serves as the core policy dividend for this round of expansion. Only 30% of the annual 49,000 tax-exempt quota has been used so far, but Tesla’s Shanghai-made vehicles have suspended deliveries in Canada as the company’s individual allocated quota has been exhausted. This means the ability to secure stable quota allocation will become a core competitive factor for new entrants.
Against this backdrop of the rapidly warming new energy vehicle market in Canada, legacy automakers have pushed down the price of mainstream EVs to the US$23,000-$32,000 (CAD 35,000-45,000). With nearly half of local potential EV consumers willing to wait for Chinese brand vehicles to launch, and the full-process polishing value of the Canadian Motor Vehicle Safety Standards (CMVSS) for the North American regulatory system, the Canadian market is evolving into a key forward position for Chinese automakers to tap into the broader North American market.
Source: China Automotive News Read The Article
PSR Analysis: The opening of the Canadian market has delivered a tangible incremental springboard for the globalization of Chinese electric vehicles. Under the Sino-Canada EV tariff quota agreement signed in early 2026, nearly 33,000 tax-exempt import slots remain.
Vehicles within the quota only need to pay a basic tariff of 6.1%, which directly lowers the cost threshold for Chinese car imports. Coupled with the fact that nearly half of local consumers planning to buy EVs have explicitly stated they are willing to wait for Chinese brands to launch, carmakers including Chery and Geely, which have already completed vehicle launch validation in Europe and Australia, can directly bring their mature pure electric and hybrid SUVs to the market.
They can tap into the mainstream US$23,000-US$32,000) (32,000-45,000 CAD) family vehicle segment with configuration and cost-effectiveness advantages. This could enable them to capture the first batch of users riding the local EV sales boom that sees a 55% year-on-year growth.
More practically, by entering the Canadian market, carmakers can fully go through the CMVSS North American safety certification, as well as vehicle and battery cold-weather tests under temperatures dozens of degrees below zero. This allows them to get a thorough grasp of North American market rules and accumulate real experience for future local plant construction and further expansion into the broader North American market.
However, there are quite a few hurdles standing in the way of actual implementation. Local legacy brands in Canada have taken the lead in making moves: carmakers themselves offer subsidies of up to USD $9,200 (13,000 CAD), which are stacked on top of the USD $3,500 (5,000 CAD) federal EV purchase rebate. This has directly pushed the terminal price of mainstream EVs down from above USD $28,300 (40,000 CAD) to the USD $24,800 (35,000 CAD) range.
But Chinese-made vehicles are not eligible for this federal rebate. To maintain the price advantage that local consumers expect from Chinese cars, these brands have to give up part of their profit margin. The most critical issue lies in the quota allocation: the total 49,000 annual slots are not distributed equally to all applicants on a first-come-first-served basis. How many slots each carmaker can finally obtain depends entirely on separate negotiations with the local government, with no clear public standards.
Tesla’s Shanghai-made Model 3s have been delisted and suspended for sale on Tesla’s Canadian official website after the brand exhausted its individual quota. For new entrants like Chery and Geely, how many quotas they can secure and how many vehicles they can ship in for the first batch will, more than the product strength of the cars themselves, determine how far they can go in the initial stage.PSR
Jack Hao is Senior Research Manager – China
