CANADA: BYD and Tesla may soon face limits on how many Chinese-made electric vehicles (EVs) they can bring into Canada as government officials discuss whether they should give various automakers their own specific allocation within a newly agreed 49,000-vehicle annual import quota at a reduced 6.1% tariff rate.
Discussions also include whether they should limit how much space each company can use. This is to ensure that a single automaker does not dominate the quota as they enter the Canadian market, Bloomberg reported.
Prime Minister Mark Carney agreed to the quota in January, opening the door for Chinese automakers such as BYD, Chery, and Geely to enter Canada’s EV market for the first time, while also allowing Tesla and other automakers producing vehicles in China to enter the country.
In a government notice, it said an initial 24,500 import permits would be made available on a “first-come, first-served” basis until Aug 31, although it remains unclear how the quota system will work after that as discussions continue, officials who wanted to remain anonymous told Bloomberg.
They added that companies that establish operations in Canada, especially those involving vehicle assembly, would receive “favourable access” to the market.
The government has also promised that within five years, half of the quota will be reserved for cars which cost under C$35,000 (S$32,526).
Tesla and Zhejiang Geely Holding Group-affiliated Polestar, whose vehicles have already been sold in Canada for years, are expected to be among the first brands to take advantage of the lower-tariff quota.
According to Electrek, Chinese automakers BYD, Chery, and Geely are already hiring staff while scouting dealership locations and registering trademarks in Canada. /TISG
Read also: China’s BYD reports weakest sales growth but will likely edge out Tesla as top EV seller
This article (BYD, Tesla may face import caps as Canada considers per-brand quota on Chinese-made EVs) first appeared on The Independent Singapore News.
