BYD plans 20 Canadian dealerships within a year as 6.1% tariff deal opens the floodgates
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By Fred Lambert
Published on March 24, 2026.
BYD, the world's largest EV manufacturer, plans to open 20 branded dealerships in Canada within a year, with the company already scouting locations in the Greater Toronto Area and Vancouver, Montreal, and Calgary. The move comes after Canada cut its 100% tariff on Chinese-built EV from 100% to 6.1%, a policy change that unlocked the Canadian market for Chinese automakers for the first time. The trade deal between Canada and China resulted in a significant increase in imports of Chinese-made vehicles, capped imports at 49,000 in the first year at under 50,000 units, with a second application window from September 2026 to February 2027 allowing another 24,500 vehicles plus any unused permits from the first phase. The quota rises gradually to 70,000 by 2030, with more than half of these vehicles expected to carry import prices below $35,000. The company's entry comes as a significant development in the Canadian EV market, which has seen a sharp decline in battery-electric sales fall by more than 60% in 2025, while Tesla saw its Canadian sales decline by over 60% year-over-year to around 85,000 Units. The firm's CEO, Farid Ahmad, confirmed that BYD is targeting approximately 20 stores within its first year of Canadian operations.
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