The reduction in tariffs for importing Chinese cars to Canada is expected to significantly lower costs, potentially impacting electric vehicle (EV) sales. Experts analyzing the EV market in Canada suggest that while the country’s charging infrastructure can accommodate the influx of Chinese EVs, there are gaps and challenges that must be addressed as the EV fleet expands.
Under the recent trade agreement, China can now export up to 49,000 EVs annually to Canada at a reduced tariff rate of 6.1%, down from 100%. This move is anticipated to increase the availability of Chinese EVs in the Canadian market at more competitive prices.
Although the influx of Chinese EVs may contribute moderately to significantly to EV sales in Canada, projections indicate a substantial growth in EV sales by 2040 even before this development. According to a 2025 report by Electric Mobility Canada, four out of five light-duty vehicles sold in 2040 are expected to be zero-emission vehicles.
The impact of Chinese imports on EV sales could diminish over time as the market evolves. The exact influence of Chinese EVs on the overall EV sales landscape remains uncertain, especially regarding potential market displacement or addition. The trade agreement specifies that half of the import quota will be allocated for EVs priced under $35,000 by 2030, potentially introducing new brands and competitive pricing to the market.
While the existing charging infrastructure in Canada is deemed adequate to accommodate an increased number of EVs annually, further growth is necessary to support the expanding EV fleet. Challenges persist in remote areas and multi-unit residential buildings, hindering access to home charging for urban dwellers.
The positive aspect of EV charging is its flexibility, allowing for optimized use of infrastructure and potentially reducing electricity costs. Utility companies across Canada are preparing for the surge in EV adoption, with policies like the ZEV Availability Standard aiding them in forecasting EV demand and making informed infrastructure investments.