China's Chery targets Canada entry amid import policy shift

Chery is aiming to begin selling vehicles in Canada as early as the fourth quarter of 2026, as the Chinese automaker evaluates new opportunities following changes in Canadian import policy for electric vehicles, News.Az reports, citing foreign media.

Earlier this year, Canada announced that its effective tariff rate for a limited number of Chinese electric vehicles would be reduced from 100% to 6.1%.

Since the policy shift, competition has intensified among Chinese manufacturers seeking to position themselves for entry into the Canadian market. Under current projections, Chinese imports could rise from around 49,000 units—about 2.5% of Canada’s 2025 auto market—to approximately 70,000 vehicles annually by 2030.

The framework also includes affordability requirements. Initially, 10% of imported vehicles must be priced below $35,000 (import price, not MSRP) in 2027, rising to 20% in 2028, 35% in 2029, and 50% by 2030. All vehicles will also need to comply with the Motor Vehicle Safety Act and Canada Motor Vehicle Safety Standards.

These conditions represent significant challenges for new entrants to the Canadian automotive market, which is already highly competitive.

Charlie Zhang, Executive Vice-President of Chery International, said the company’s goal goes beyond simply selling cars in Canada. “Our goal is to become a meaningful part of the Canadian market and community — not simply to sell vehicles there,” he said, adding that the company is proceeding cautiously due to unresolved regulatory and planning uncertainties.

Zhang noted that a final decision depends on regulatory approvals and other conditions. “Subject to regulatory approvals and other necessary conditions, if everything goes as we hope it will, we plan to be ready to sell Chery vehicles in Canada in Q4 of 2026,” he said.

He also highlighted uncertainty around expected sales volumes. “There is a lot that goes into planning to enter a new market, and this situation is very unique in that we do not yet have clarity on how many vehicles we will be approved to sell—which of course makes it difficult to make any definitive plans,” Zhang added.

Despite these challenges, Chery said it is progressing on preparation work within its control. The company pointed to its existing operations in Europe and the United Kingdom, where its vehicles already meet regulatory standards. It is now conducting analysis to identify any differences between those requirements and Canadian regulations. Chery expects to complete certification preparations by the third quarter.

News.Az 

By Nijat Babayev