BYD is studying the possibility of producing vehicles in Canada, and it’s also not ruling out buying an existing manufacturer.
As reported by Bloomberg, the Chinese automotive giant BYD is actively exploring the possibility of building a factory in Canada, while remaining open to the acquisition of an already established global manufacturer. This came out of an interview with Stella Li, the group's Executive Vice President, during a visit to São Paulo.
Although no final decision has been made, Stella Li confirmed that BYD is analyzing the Canadian market with a view to a possible production facility. However, she specified a central point: if the project were to go ahead, BYD would want to own and operate the factory itself, without a local industrial partner. So no joint venture.
BYD wants to maintain full control
Here in Canada, the federal government has said more than once it favours a partnership or joint venture model for Chinese investments in the automotive sector. But Stella Li made clear this was not among the options being considered; in her view, a joint venture would not work in this specific case. That position suggests that BYD intends to maintain total control over its industrial tools, technology and operations, as it already does in other markets.
A deeper investment in Canada?
Until now, signals regarding BYD’s entry into Canada mainly involved a commercial entry. We’ve known since 2024 that the manufacturer was examining the market to sell its passenger vehicles, despite additional customs duties imposed by Ottawa on electric vehicles (EVs) manufactured in China.
The context has since evolved. In January 2026, Canada announced the partial opening of its market to Chinese EVs, via a quota system. It allows for the importation of a limited volume of vehicles (49,000 units in the first 12 months) with a 6.1 percent tariff applied instead of the 100-percent levy imposed since 2024.
At the same time, Canada has been eager to explore investments and partnerships with Chinese companies to develop a local industry.
This is what gives Stella Li's comments more weight today. It’s no longer just a question of BYD selling vehicles in Canada; a manufacturing presence is now on the table.
Why Canada interests BYD
Canada has several qualities that make it appealing to BYD: a solid automotive industrial base, a burgeoning battery ecosystem and trade agreements that make it a potential gateway to North America.
In a context of multiple tariff and political barriers, producing domestically in a market obviously reduces exposure to protectionist measures. BYD has already stated its intention to produce all of its EVs sold on the European continent locally by 2028, with factories in Hungary and Turkey.
What’s more, the group isn’t starting from scratch in Canada. In 2019, BYD opened its first factory in Ontario dedicated to the assembly of electric buses. Although this activity differs from the passenger vehicle sector, it gave the company an initial local anchor.
The other element to watch: an acquisition
Perhaps even more significant is the confirmation that BYD remains open to the acquisition of an established global manufacturer. While no names have been put forward and no processes announced, the mere fact that the executive is mentioning this option shows that BYD is now thinking in terms of global structural expansion, beyond just exports.
This openness is part of a major growth phase for BYD. The group sold 4.6 million vehicles in 2025, reaching its revised target and becoming the world's fifth-largest automaker by annual volume. For 2026, BYD is targeting 1.3 million sales outside of China. International growth is now at the heart of its strategy.
A project still theoretical, but more concrete than before
For the time being, caution is in order. BYD has announced no site, no schedule and no quantified investment for a Canadian factory. The company is still at the market study stage, in other words. And its stated insistence on full ownership in stead of a joint venture could complicate discussions with Ottawa if the government maintains its own priorities.
Nevertheless, the fact is that for the first time, a top executive at BYD has publicly confirmed that Canada is being evaluated not only as a sales market, but also as a possible production territory.