The Ministry of International Trade expects the number of Chinese-made electric vehicles arriving in Canada to significantly accelerate in the next six months. In March, the federal government opened up the market to Chinese-made EVs, allowing 49,000 to enter Canada at a 6.1 per cent tariff rate over the following 12 months. But with the halfway point of the period approaching, about 15,600 Chinese-made EVs have arrived in Canada, or about 31 per cent of the quota. Huzaif Qaisar, a spokesperson for International Trade Minister Maninder Sidhu, said the government was expecting a slow start because it takes time for businesses to enter new markets. “A lot of (Chinese) companies are doing market research right now,” he said. “In conjunction with that, they’re also doing the (road safety) certification process with Transport Canada and other departments.” The Chinese EV import quota formed the core of a larger trade deal that Prime Minister Mark Carney announced with China in January. Canada agreed to remove 100 per cent tariffs on up to 49,000 Chinese-made EVs per year in exchange for China temporarily dropping or slashing some tariffs on Canadian canola and seafood products. From the outset, it was clear that new Chinese EV brands would not immediately show up, in part because it can take 12 to 24 months for an automaker to certify its vehicle complies with Canadian safety standards. Qaisar said the federal government is assisting Chinese automakers with the safety certification process, although he did not specify how long it could take. “We’re making sure they are getting the help they need,” he said. “It won’t take 18 months, (but) we are definitely ensuring it’s a due diligence process.” He said about half of the Chinese EVs shipped to Canada so far had a “freight-on-board” value of $35,000 or less. That price does not include customs duties, taxes and other costs, so consumers are paying a higher price for those vehicles. So far, many of the imported Chinese-made EVs are ones most Canadians are already familiar with, including ones by Tesla Inc. and Chinese-owned brands Polestar Automotive Holding UK PLC and Volvo Car Group. It is also possible that some United States companies such as Ford Motor Co., which manufactures its Lincoln Nautilus Hybrid in China, may have used some of the quota. Ford briefly stopped importing the vehicles after Canada announced 100 per cent tariffs on Chinese-made EVs in 2024. It did not respond to requests for comment by the time of publication. Other brands could arrive soon. In April, Sidhu posted on social media that he had held meetings in China with BYD Co. Ltd., XPeng Inc. and GAC Aion New Energy Automobile Co. Ltd. about selling vehicles in Canada. Qaiser said many Chinese companies are keen to sell vehicles in Canada, but need to conduct research on the Canadian climate and road conditions and obtain safety certification. “It just takes time for people to change their strategies,” said Stephen Beatty, a former Toyota Canada Inc. executive based in Ottawa who now advises companies on the auto market here. “Canada’s one of the top 10 markets in the world right now and they need all the dollars they can get right now.” China’s domestic car sales are currently under pressure, having experienced 11 consecutive months of declining sales, according to news reports in Reuters and elsewhere that cite data from a Chinese industry group. The closest parallel to such a slump in North America occurred during the great financial crisis, when a broad credit freeze led to 18 months of declining vehicle sales and forced some U.S. automakers into bankruptcy. Although the current decline in Chinese domestic automotive sales has been linked to broader economic strain, including a prolonged real estate downturn, the country’s automotive sector remains a powerhouse with exports hitting record levels. “They’re chasing foreign markets because that’s where they can gain new market sales,” Beatty said. “The (manufacturer’s suggested retail place) is going to be set to be competitive in the marketplace they’re in.” But there’s still uncertainty surrounding Chinese EVs entering Canada en masse. For one thing, China only granted tariff relief on Canadian canola meal, peas, lobster and crab until the end of 2026 , which could be a discussion topic in November when Carney is scheduled to travel to Shenzhen, China, for the Asia-Pacific Economic Cooperation Leaders’ Meeting. Meanwhile, the U.S. has a hard ban on Chinese-made vehicle software and hardware, a 100 per cent tariff on Chinese-made EV and legislation to ban the vehicles outright is pending in Congress. Beatty said there’s speculation that U.S. trade negotiators may ask Canada to “clamp down” its Chinese EV import quota as part of any broader trade deal between the two countries. “There’s a high level of risk involved in being one of the (Chinese) companies trying to set up a network to sell cars in Canada because you don’t know if you’re going to be in that business in a couple of years’ time,” he said. • Email: gfriedman@postmedia.com Canadians snap up used EVs at the fastest pace ever on high gas prices, lower car costsChinese EVs are coming to Canada: Here’s what consumers need to know