The Canadian government released a fresh batch of 24,500 import permits for Chinese-built electrified vehicles, marking the start of the second six-month window under the current revised bilateral trade agreement. Combined with unused allocations carrying over from the opening half of the year, potential imports could reach 33,397 units over the next six months.
What’s the deal?
The quota framework, which allows up to 49,000 qualifying vehicles in its inaugural 12-month period, came into effect on March 1. Under the terms of the agreement negotiated between Ottawa and Beijing, vehicles entering Canada under the permit system face a standard 6.1 percent most-favoured-nation tariff, instead of the 100-percent surtax previously imposed on Chinese-made electric vehicles in 2024.
During the first window, which ended yesterday, August 31, demand was not such that it filled the entire initial 24,500-vehicle allotment. Global Affairs Canada reported as of August 28 that 15,603 permits had been used, among them 15,344 for full electrics and 259 for hybrids. That left open roughly 8,897 spots, which will be rolled into the new window of opportunity for those making vehicles in China and wanting into the Canadian market.
Import activity saw a slow start in March and April, mainly due to supply chain re-adjustments. Momentum built steadily over the summer, peaking in July and August with over 5,000 monthly imports.
Then: Tesla, Lotus and… Lincoln
Established international brands accounted for the vast majority of initial shipments. Tesla led the surge by resuming shipments of its Shanghai-built Model 3 to Canadian customers in May, while Lotus imported dozens of its Eletre performance SUVs and Lincoln re-introduced its China-manufactured Nautilus hybrid.
Now: BYD, Geely and Chery
It’s expected that the dynamics of the second import window will shift significantly, this as Chinese domestic brands prepare direct market entries. Major automakers including BYD, Cher, and Geely have been advancing vehicle certification, building executive teams and engaging Canadian dealer networks. BYD recently launched a Canadian landing page bearing a "Coming Soon" message, signaling imminent retail availability. Test vehicles from all three manufacturers have already been spotted undergoing road testing across Canadian provinces this summer.
Global Affairs Canada confirmed that import allocations will remain on a first-come, first-served basis for the time being. Annual import limits are set to expand further next year, increasing by 6.5 percent to 52,185 vehicles when the next quota cycle begins on March 1, 2027.