The recent reduction in tariffs for importing Chinese cars to Canada is expected to significantly lower costs, potentially impacting electric vehicle (EV) sales. While experts suggest that Canada’s charging network and power grid can accommodate the increased demand, there are some existing gaps and challenges that need to be addressed as the EV fleet expands.
Under the new trade agreement, China can now export up to 49,000 EVs annually to Canada at a reduced tariff rate of 6.1%, down from 100%. This adjustment is anticipated to make Chinese EVs more accessible and affordable for Canadian consumers.
Despite the influx of Chinese EVs, the number is relatively small, representing only 3% of annual auto sales in Canada. Additionally, it is equivalent to the number of Chinese EVs sold in Canada in 2023 and 2024. These figures account for just 19% of the total 264,000 zero-emission vehicles sold in Canada in 2024.
According to Lindsay Wiginton, from energy consultancy firm Dunsky, Chinese imports could make a notable contribution to EV sales in Canada. However, existing projections indicate significant growth in EV sales by 2040, with an expectation that four out of every five light-duty vehicles sold will be zero emissions.
While the impact of Chinese imports may diminish over time, questions remain about their potential influence on the overall EV market in Canada. The government has reserved half of the import quota for Chinese cars priced under $35,000 by 2030, but the specifics regarding cheaper car quotas in the near future have not been disclosed.
Experts like Joanna Kyriazis from Clean Energy Canada believe that the introduction of Chinese EVs could lead to increased competition and availability of lower-cost EV options in Canada. Moreover, the expansion of charging infrastructure is deemed crucial for supporting the growing EV market, especially in addressing gaps in remote areas and multi-unit dwellings.
Overall, the integration of Chinese EVs into the Canadian market is expected to diversify choices and potentially lower prices, driving higher adoption rates. To sustain this growth, supportive government policies and continued investments in charging infrastructure will play a vital role in shaping the future of EVs in Canada.