In most trade deals, there are winners and losers — and Canada’s new agreement with China on electric vehicles (EVs) appears to be no exception.
Canadian automakers warn the deal could threaten local jobs and weaken Canada’s EV supply chain. But some car dealers say consumers could benefit, with more choices and lower prices.
“I think having more options will bring prices down,” said Nazar Navolskyy, co-owner of Favorit Motors in Toronto. He said Chinese EVs are improving quickly and no longer deserve their old reputation for poor quality.
After seeing Chinese EVs at international auto shows, Navolskyy said he was surprised by how advanced they are. “I was absolutely blown away,” he said.
Hamza Patel, manager of Planet Motors in Toronto, agreed. He said brands like BYD and Xiaomi offer luxury-style EVs with modern technology at much lower prices than vehicles like Tesla’s Model Y.
Patel added that cheaper new EVs from China could make buyers rethink purchasing older used EVs. He also said lower prices could help governments reach EV adoption targets faster.
Canada has set goals for zero-emission vehicle sales, though a 2026 target was recently delayed due to slower sales.
Devin Arthur of the EV Society said more competition is good for consumers. “Prices will come down, and that makes EVs more affordable for everyone,” he said.
A federal source said Canada will allow up to 49,000 EVs made in China to enter the country at a lower tariff starting March 1. At first, these vehicles are expected to be built by non-Chinese automakers with factories in China, since Chinese brands are not yet approved by Transport Canada.
The government hopes Chinese companies could eventually partner with Canadian automakers and build EVs in Canada.
However, industry groups remain skeptical. Brian Kingston of the Canadian Vehicle Manufacturers’ Association said Chinese automakers benefit from much lower labour and environmental standards, making it hard for them to operate fairly in Canada.
Arthur said Canada should not rely only on the U.S. for EV manufacturing. “We need to diversify and look for new partners,” he said.
