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Canada Opens Quota for China-Built EVs as BYD Gains Transport Canada Clearance

Most near-term imports will likely be China-made Teslas, Volvos and Polestars because new Chinese brands face approvals and model selection decisions.

Overview

  • Ottawa began accepting shipment-specific import permit applications on March 1 under a 12‑month, 49,000‑vehicle quota at a 6.1% tariff, with 24,500 vehicles allowed March–August and the remainder from September–February 28, 2027.
  • Transport Canada’s Appendix G now lists BYD passenger‑car entities for its Shenzhen and Xi’an plants, positioning the company to export consumer models to Canada after years of selling buses assembled in Newmarket, Ontario.
  • Imports must meet the Motor Vehicle Safety Act and Canada Motor Vehicle Safety Standards and be listed in Appendix G, and experts say compliance testing can take weeks to months for brands new to the market.
  • Global Affairs says only automakers or authorized Canadian representatives can apply, permits are valid up to 60 days, there is no preset per‑automaker cap, and issuance will be monitored for equitable access.
  • Tesla has removed the Model 3 configurator from its Canadian site and is steering buyers to inventory, a move observers interpret as potential positioning for China‑built supply under the new rules, though the company has not confirmed plans.