China’s BYD Eyes Entry Into Canadian EV Market

A BYD 07 EV model electric car is displayed at the Beijing Auto Show on April 25, 2024. (Pedro Pardo / AFP via Getty Images)

Chinese electric vehicle maker BYD is looking to expand into the Canadian automotive market, according to a recent regulatory filing. The move comes as Ottawa is considering the introduction of tariffs on vehicle imports from China.

Consultants representing BYD filed documentation with Ottawa in late July to “advise the government of Canada 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.”

The document also addressed the potential implementation of tariffs on electric vehicles (EVs), but did not provide a timeline for BYD’s plans.

The Epoch Times contacted BYD for comment, but didn’t receive a response prior to publication.

Ottawa launched a 30-day public consultation July 2 to receive feedback on imposing tariffs on Chinese EVs. Deputy Prime Minister Chrystia Freeland described the process as necessary to prevent “unfair competition” from China.

“Chinese producers are quite intentionally generating a global oversupply that undermines EV producers around the world, including here in Canada,” Freeland said during a June 24 press conference.

“Launching these consultations will help us work collaboratively with unions, with industry, and with all levels of government to develop options to make sure that Canada does not become a dumping ground for Chinese oversupply.”

Ottawa is considering a number of policy measures including a surtax on imports of Chinese EVs under section 53 of the Customs Tariff, revising the eligibility criteria for federal incentives for Canada’s Zero-Emission Vehicles program, and potentially implementing more extensive restrictions in Canada.

Tariffs on China

China has become a major supplier of EV vehicles and batteries in recent years, due in part to increases in government subsidies. China accounted for nearly 80 percent of all lithium-ion batteries for electric vehicles globally by 2021. By 2023, nearly one in five EVs sold in Europe were manufactured in China.

U.S. President Joe Biden said in May he planned to hike tariffs on Chinese EVs from 25 percent to 100 percent in response to the growing trend. Biden also said he would increase tariffs on lithium-ion batteries and certain other clean energy products.

The European Union announced the following month it would raise tariffs on Chinese EVs to 38.1 percent.

Canada currently imposes a 6 percent tariff on Chinese-made vehicles, but the cars also qualify for up to $5,000 in rebates under the federal plan to have only zero-emission EVs on the road by 2035.

As the Canadian government continues to mull a potential tariff hike on EVs from China, Ontario Premier Doug Ford is calling on Ottawa to take a firm stance.

Ford has advocated for Canada following the U.S. example by implementing a 100 percent tariff on Chinese EVs. He said Beijing’s imports are harming Canadian jobs, and that China is leveraging its “low labour standards and dirty energy” to flood markets in other countries with cheap vehicles.

Canada and the U.S. have been aligning their EV industries in recent years, including critical minerals, batteries, and EV manufacturing itself.

Canada has also been heavily investing in the EV industry, spending $30 billion in the last two years for EV battery and vehicle manufacturing sites for Stellantis, Volkswagen, and Honda.

The effort is in large part an attempt to keep China from making a dent in North America’s auto industry. The sector accounts for almost 5 percent of the U.S. economy and more than 2 percent in Canada.

Reuters and the Canadian Press contributed to this report.