Canada's Industry Minister: At Least Four Chinese Automakers Considering Building Plants in Canada
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Canada's Industry Minister Melanie Joly said Monday that BYD, Chery, Geely, and Jetour are all open to exploring joint-venture manufacturing in Canada — the first substantive contacts since a bilateral EV trade deal was struck in January.
What exactly did the four automakers discuss?
Joly met executives from BYD, Chery, Geely, and Jetour during a visit to China last week.
All four said they were "willing to explore forming joint ventures and manufacturing locally in Canada."
This means → talks have moved from "whether to enter Canada" to "how" — but no deals are signed yet.
Where does the low-tariff quota come from?
In January, Prime Minister Mark Carney visited China and struck a trade deal: up to 49,000 Chinese-made EVs can enter Canada at roughly 6% tariff.
That replaced the extra 100% tariff imposed in 2024 — a shift from near-total blockade to conditional access.
In plain terms = Canada opened a narrow door, but the key comes with strings attached.
What conditions did Canada set?
Joly drew three red lines: joint ventures must be Canadian-controlled, build local supply chains, and avoid "knock-down assembly."
Knock-down assembly — shipping parts made overseas for final assembly in Canada — was flatly rejected.
This reflects Canada's insistence on real production capacity, not a relabeling exercise.
What is the Stellantis idle-plant angle?
Bloomberg previously reported that Ottawa is negotiating with Stellantis to use its idle plant in Brampton, Ontario, to produce Chinese EVs.
One possible route runs through Stellantis's joint venture with Zhejiang Leapmotor Technology.
Whether Leapmotor's setup can meet Joly's localization requirements remains unclear.
Who is using the quota now?
The low-tariff quota took effect in May, but the vast majority of imports so far are Tesla vehicles built at its Shanghai factory.
Ottawa is still working out allocation rules and may cap how much any single automaker can use.
This means → the quota was designed to bring in multiple Chinese brands, not to serve as a back door for Tesla.
How is Canada's own auto sector doing?
The industry faces twin pressures: U.S. tariff shocks and a pullback in EV investment.
Honda last month indefinitely suspended a C$15 billion (≈US$10.6 billion) plan to build an EV battery supply chain in Ontario.
In plain terms = Japanese automakers are retreating, and Canada urgently needs new capital to fill the capacity gap — Chinese automakers are among the few still willing to talk.
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