Canada China EV Import Permits Reach 24,500 in Second Release

On September 1, Canada moved into the next phase of its revised vehicle import arrangement with China by releasing another 24,500 permits for China-made electrified vehicles. The allocation comes as established automakers resume sourcing vehicles from Chinese production facilities and additional manufacturers prepare to establish sales operations in the Canadian market. The latest release forms the second half of a federal quota introduced following a January trade agreement between Canada and China. The arrangement permits up to 49,000 qualifying vehicles during its first 12 months, with equal allocations becoming available on March 1 and September 1.

Vehicles imported through the quota face Canada's standard 6.1% most-favored-nation tariff rather than the 100% surtax that had applied to Chinese electric vehicles in 2024. The revised framework therefore substantially changes the tariff conditions for eligible China-made electrified vehicles entering the Canadian market. Unused permits from the first phase will also increase the potential number of China-made EV imports during the following six months, raising the available capacity to 33,397 vehicles. Global Affairs Canada reported on August 28 that quotas had been issued for 15,344 EVs and 259 hybrids during the opening six-month period, showing that the first allocation had not been fully utilized.

Established brands have so far been among the earliest participants in the revised import system. Tesla began offering a lower-priced Model 3 built at Gigafactory Shanghai in Canada in May, providing one of the clearest examples of renewed Chinese production sourcing for the Canadian market. Lotus, which is owned by Geely, imported several dozen Eletre SUVs during the summer, while Lincoln brought its China-manufactured Nautilus hybrid into Canada in August. These moves indicate that the quota is already supporting renewed access to China-produced electrified vehicles from brands with existing or developing Canadian market operations.

The available import volume is scheduled to expand again in 2027 under the Canada-China agreement. The annual quota will increase by 6.5%, reaching 52,185 vehicles when the next quota year begins on March 1, 2027. At the same time, Chinese automakers are preparing for a broader commercial presence in Canada. BYD, Chery, and Geely are pursuing vehicle certification, recruiting employees, and engaging potential Canadian dealers. Their activities suggest that the revised import framework could support not only additional vehicle volumes but also the entry of new OEMs as they complete the regulatory, workforce, and retail requirements needed to begin sales.

Frequently Asked Questions

What is Canada's revised quota for China-made electrified vehicles?
Canada's revised arrangement allows up to 49,000 qualifying China-made electrified vehicles during its first 12 months, with the quota divided into two equal releases. The first allocation became available on March 1, while the second 24,500 permits were released on September 1. Vehicles imported through the arrangement are subject to Canada's standard 6.1% most-favored-nation tariff rather than the previous 100% surtax applied to Chinese EVs in 2024. Unused permits from the first phase can increase potential imports during the following six months, while the annual allowance is scheduled to rise to 52,185 vehicles in 2027.