The electric vehicle sector in Canada is set for a significant shift as Prime Minister Mark Carney announces the reduction of tariffs on Chinese-made EVs from 100% to six percent. This move aims to meet the rising demand for more affordable and environmentally friendly EV options. Max Morris, the sales manager at Shift Electric Vehicles in Burlington, Ontario, highlighted the benefits of having Chinese EVs in the market, such as increased choices and advanced technology.
While some stakeholders welcome the market opening, concerns have been raised regarding the safety and security of vehicles from Chinese government-affiliated companies. China has emerged as a major player in the global EV market, with over 100 EV brands, including Geely, Chery, MG, Wulin, and Tesla. BYD, in particular, surpassed Tesla as the world’s top EV seller last year, with a significant presence in Brazil, Australia, and Mexico.
Canada is expected to allow up to 49,000 Chinese EVs annually, initially accounting for less than three percent of the total car market. This number is projected to increase to around 70,000 over the next five years. The move comes in response to consumer demand for more affordable EV options, as indicated by an Abacus Data poll.
The arrival of Chinese EVs in Canada could happen within weeks, pending regulatory clearances. The federal government aims to streamline the process to facilitate trade reciprocity with China. The affordability of Chinese EVs compared to traditional gasoline cars could play a crucial role in meeting emission reduction targets in Canada.
Despite concerns about safety and security, Chinese EVs have shown improvements in safety ratings, with several models ranking among the safest in Europe. Questions regarding cybersecurity have been raised, prompting the government to address potential risks associated with Chinese-made vehicles. Andreas Schotter, a professor of international business, emphasizes the need for a sophisticated approach to mitigate security concerns while embracing the benefits of EV technology.
