BYD Co. is in active negotiations to open dealerships in the Greater Toronto Area as the world’s largest EV manufacturer moves to establish a retail presence in Canada.
The country struck a new trade agreement with China in mid January, allowing up to Chinese-built EVs to be sold in the country at a 6.1% tariff rate — down from the 100% rate imposed in 2024.
Farid Ahmad, chief executive of Dealer Solutions Mergers & Acquisitions in Markham, Ontario, told the Globe and Mail on Wednesday that his firm is negotiating with three locations for possible BYD stores.
The Shenzhen-based automaker wants to open 20 dealerships within a year, starting in the Toronto area before expanding to Vancouver, Montreal, and Calgary — according to Ahmad.
“They’ve asked us to help them find as many of the 20 that they possibly can, but they’re out there doing that themselves, as well,” Ahmad told the Globe and Mail.
His consultancy has also been approached by other Chinese automakers looking to build Canadian dealer networks, he said, without naming
The dealership push represents the most concrete step yet by a Chinese-headquartered automaker toward direct retail sales in North America.
BYD is the only Chinese passenger vehicle manufacturer to have registered its production facilities with Transport Canada’s Appendix G preclearance registry — a prerequisite for importing vehicles into the country — as EV reported earlier this month.
Stand-Alone Preferred
Chinese manufacturers prefer to operate their own stand-alone dealerships rather than sell through established Canadian dealer groups, Ahmad told the newspaper.
However, some may opt for existing networks to reduce costs and accelerate their market entry timeline.
Jason Zhao, director of Asian market development at advisory firm DSMA, who told Automotive News earlier this month that BYD is expected to pursue partnerships primarily with large dealership groups — while Geely appears more open to working with retailers of varying sizes.
Three Chinese Brands
BYD Co. is not the only Chinese automaker moving on Canada.
Chery Automobile began recruiting Canadian staff for engineering, certification, and intelligent driving roles in January, referencing its Omoda and Jaecoo sub-brands.
Geely Holding Group CEO Andy An separately confirmed to Bloomberg this week that the company expects to receive Canadian certification “soon” for Geely Auto-branded vehicles — the first time a senior executive has confirmed direct sales ambitions under the Chinese nameplate.
All three manufacturers are racing to complete regulatory and commercial preparations in time for initial shipments by year-end.
However, BYD Co. has an edge.
Its Shenzhen and Xi’an passenger vehicle factories are already listed in the Transport Canada registry, covering models including the Seal sedan, Dolphin hatchback, Atto 3 compact crossover, and the Seagull city car marketed as the Dolphin Surf in Europe.
No Federal Subsidy
Chinese-built EVs entering Canada are ineligible for the federal Electric Vehicle Affordability Program, which offers rebates of up to C$5,000 only for vehicles produced domestically or in free-trade partner countries.
The exclusion removes a significant purchase incentive that competitors such as the Hyundai Ioniq 5 and Chevrolet Equinox EV can offer.
And despite Prime Minister Mark Carney’s framing of the January trade deal as a pathway to affordable EVs for Canadians, no affordability requirement applies in the first quota year.
The C$35,000 import price threshold does not take effect until 2027, when just 10% of the quota must fall below that level — rising to 50% by 2030.
BYD‘s previous Canadian venture — an electric bus assembly plant in Newmarket, Ontario, opened in 2019 — produced a total of 10 buses for the Toronto Transit Commission before closing.
Beyond Imports
BYD’s Canadian ambitions may extend beyond dealerships.
Vice President Stella Li told Bloomberg earlier this month that the company is considering building its own manufacturing plant in Canada, though no final decision has been made.
Li rejected the joint venture model Ottawa has been encouraging. “I don’t think a JV will work,” she said.
She also signalled that BYD is evaluating potential acquisitions of struggling legacy automakers to accelerate its global expansion — though she declined to name specific targets.
