In 2024, BYD paused its plans to export electric vehicles from China to Canada after Canada followed the US and imposed additional import tariffs of 100 per cent on electric vehicles from China. However, Canada has since negotiated an EV deal with China, planning to initially allow up to 49,000 Chinese electric vehicles into the country annually at a reduced tariff rate of 6.1 per cent. This volume matches the annual number of Chinese EV imports before the recent trade conflicts. The number of low-tariff imports could increase further in the future.
This political shift has prompted BYD to reconsider its strategy for entering the Canadian electric vehicle market. With the market reopening, BYD is now exploring not only imports but also local production. However, the company is not keen on a joint venture with a Canadian partner, as preferred by the Canadian government for Chinese manufacturers. “I don’t think a JV will work,” said BYD Vice President Stella Li during a visit to São Paulo. As Bloomberg reports, BYD is instead considering establishing its own production facility in Canada, though no final decision has been made yet, Stella Li added.
When asked about plans in the US, Stella Li stated that these were on hold, describing the US as a “complicated environment.” This likely refers to both the high tariffs and the upcoming ban on connected vehicle technology from China in the US, which effectively excludes most Chinese models from the market. The ban was introduced by the Biden administration last year, just days before the transition of power to Donald Trump.
Instead, BYD could draw inspiration from Chinese automaker Geely, which previously acquired the Swedish manufacturer Volvo and the British manufacturer Lotus, and also purchased a 50 per cent stake in Smart. Stella Li expressed openness to a similar strategy: “We’re open to every opportunity we have,” she said. While no concrete deal is currently in progress, the company is evaluating potential assets. “We’ll see what benefits us,” Bloomberg quoted the BYD executive as saying.
Acquiring an established manufacturer could be particularly appealing at this time, especially as American, European, and Japanese carmakers are struggling to remain competitive. Stella Li attributed this struggle to their simultaneous investments in both internal combustion engine vehicles and electric vehicles.
Recently, BYD has faced challenges: China’s largest automaker sold only 190,190 electric vehicles and plug-in hybrids in February 2026, a 41 per cent decline compared to the same period the previous year. However, this month marked the first time overseas sales surpassed those in China, with overseas sales growing by 41.4 per cent to 100,151 vehicles. For the full year, BYD aims to sell over 1.3 million vehicles overseas.
bloomberg.com, electrek.co
