Could Canada use Chinese electric vehicle firms to reboot its auto manufacturing?

Following a January deal on Chinese electric vehicles (EVs) makers’ imports into Canada, there was a rush to buy Polestar EVs at an Oakville showroom in Canada’s Ontario province. But potential buyers say there are now too few Chinese EVs in the Canadian market.

During Prime Minister Mark Carney’s visit to Beijing earlier this year, Canada agreed to allow 49,000 Chinese EV imports annually at a 6.1 per cent tariff rate. But potential Canadian buyers are now gauging how long it will take the policy to become a reality, and a lot depends on Canada’s tightly-controlled import licensing.

“We got about 40 new cars from the initial supply, and they all went very quickly,” said Jeevin Pal, a product specialist at the showroom in Ontario. “We’re expecting another set in October, and I think they’ll go quickly too; the cars are very popular.”

An import permit from the Canadian foreign ministry is required to bring in a Chinese EV, and permits are issued based on the annual quota.

“Once quota is reached, permits will no longer be issued,” a Canadian customs notice read on March 1.

An increase is not likely until 2030, when the import ceiling is set to be raised to 70,000 vehicles per year.