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Chery targets Canada as EV tariffs melt

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Chinese automaker Chery Automobile Co. Ltd. is assembling a Canadian sales operation from scratch, recruiting veteran staff for its Omoda and Jaecoo sub‑brands. The move follows Prime Minister Mark Carney’s deal that trims the 100 % surtax on Chinese EVs to 6.1 % for a limited import quota. Toronto is slated for the new headquarters.

Under the Jan. 16 agreement Canada will allow 49,000 Chinese‑built EVs each year, rising to 70,000 within five years. In exchange Beijing promises lower duties on Canadian staples such as canola and seafood. Industry Minister Mélanie Joly met Chery and BYD executives during a high‑level trade mission, signalling government backing.

Analysts see Chery’s entry as the first major push by a home‑grown Chinese brand into Canada’s mainstream passenger segment, echoing VinFast’s 2022 launch. Investors will watch how the reduced tariff reshapes North‑American EV competition and whether Chery can secure dealer networks before rivals expand. Quarterly sales figures will be the first barometer.