Two Of China’s Biggest Brands Are Looking To Build A Canadian Dealer Network With One City Leading The Way

A report has seemingly confirmed that two of China’s biggest electric car manufacturers are swiftly building the foundation for a Canadian push. The news comes from a consultant tasked with laying the groundwork. The companies are in talks to set up branded dealerships throughout the country, a serious move into a massive market that has so far eluded Chinese car makers.

Read: Three Chinese Carmakers Are Rushing To Enter Canada In 2026, And It’s Only The Start

It’s understood that both BYD and Chery have plans centered around establishing independent dealerships, but cautioned that the low volume of cars allowed by the quota may not be enough to sustain many Canadian dealerships.

The initial strategy involves launching out of the Greater Toronto Area, then expanding west and east to cities such as Vancouver, Montreal, and Calgary. Those involved in the talks say that BYD’s goal is to build about 20 dealership locations in the first year of operation. That would give China’s biggest carmaker a visible presence in Canada’s biggest urban markets, where there is a continuing rise in the demand for electric vehicles as consumers look for cheaper alternatives.

The news comes from Farid Ahmad, the CEO of Dealer Solutions Mergers & Acquisitions, a consultancy which has already had discussions with three possible BYD locations. “They’ve asked us to help them find as many of the 20 that they possibly can, but they’re out there doing that themselves, as well,” said Ahmad speaking to The Globe And Mail. Ahmad went on to say that a number of Chinese manufacturers were interested in setting up shop in Canada, including Chery.

Canada Is Opening The Door To New Competition

Canada recently restructured its tariff regime relating to Chinese-built electric vehicles by implementing a quota that permits 24,500 Chinese-made EV to come into Canada at a significantly reduced duty rate of just 6.1 percent. That change in policy means a change in math for companies such as BYD and Chery that previously have struggled with steep barriers that made it difficult for them to expand.

With the advent of lower import costs now possible under the quota, the move into the Canadian market is becoming more realistic. Still, there are a number of steps before any cars are in showrooms. Regulatory approvals, dealer agreements, financing structures, and service networks all have to be put in place.

Launch Timing Remains Unclear

Sources caution that although discussions are ongoing, there hasn’t been an official date initiated for the launch by BYD. The company has not publicly outlined its timeline, nor the specific models it prioritizes for Canada.

By coming into the Canadian EV market, Industry analysts believe BYD and Chery will transform pricing and competition in the industry. The market has been dominated by established North American, European, and Korean brands for an extended period. A new player that is well-known globally for high-volume electric vehicles production could expand consumer choice and put a squeeze on rivals.