Canada Launches Quota for Up to 49,000 Chinese Electric Vehicles via Import Permits
Canada has introduced a quota system allowing up to 49,000 Chinese-made electric vehicles to enter over the next 12 months, with permit applications starting Saturday an…
The Canadian government has launched a new import framework for electric vehicles made in China, starting to accept permit applications on Saturday. This quota-based system allows up to 49,000 such vehicles to enter the country over the next 12 months. It replaces a previous 106.1% tariff with the standard 6.1% most-favored-nation rate after repealing a 100% surtax.
Global Affairs Canada detailed the official guidelines in a February 24 import-control notice, and the Border Services Agency followed with a confirming customs update two days later. The allocation divides into two equal portions of 24,500 vehicles each. The first batch runs from March 1 to August 31 on a first-come, first-served basis, while the second covers September 1, 2026, to February 28, 2027, and includes any unclaimed permits from the initial period.
Permits apply to individual shipments, remain valid for 60 days, and can be submitted up to 30 days before arrival. Applications are limited to original equipment manufacturers or their designated Canadian agents, excluding independent or gray-market operators. A department spokesperson noted that no fixed caps apply per automaker, but officials will monitor the process to promote fair distribution among eligible parties. Before the second phase, consultations with industry stakeholders will assess whether to keep the current allocation method or adopt alternatives.
Uncertainties remain about potential export restrictions from Chinese authorities, with Global Affairs confirming no such mechanisms in place. Major Chinese automakers have provided scant details on their Canadian plans. XPeng declined to comment, Nio and GAC Group did not respond to inquiries, and Li Auto emphasized priorities in other regions without mentioning North America. Reports show Chery Automobile recruiting Canadian talent through LinkedIn to support expansion of its Omoda and Jaecoo lines.
Key players include Tesla as well as Geely-affiliated Volvo Cars and Polestar, all manufacturing in China. Industry Minister Mélanie Joly mentioned recent talks with companies like Hyundai, Volkswagen, BYD, and Chery during a state visit to Beijing, underscoring the importance of balanced openness.