Imports of China-built EVs into Canada under its new quota have stalled with the government’s latest weekly report showing no vehicles recorded in October and no change in the total for two consecutive updates.
Canada has used 15,931 of the 49,000 permits available in the first quota year, or 32.5%, according to the Global Affairs Canada report updated on Friday, October 23, at 3 p.m. Eastern time, leaving 33,069 permits for the four months to February 28.
The second six-month period, which opened on September 1 with 33,397 permits, has recorded 328 vehicles, all in September. That is about 1% of the window.
The October 23 figures were identical to those published on October 9.
A stalled second window
The slowdown follows Tesla’s decision to stop taking Canadian orders for its Shanghai-built Model 3.
Tesla paused orders for the Model 3 Premium rear-wheel-drive and all-wheel-drive versions earlier this month, priced from C$39,490 ($28,200).
Its Canadian website said “high demand exhausted Tesla’s import quota” and that ordering would resume “if Govt of Canada issues more quota, expected March 2027.”
The government data does not name automakers, and Global Affairs Canada has not published any company-specific allocation.
Iain Myrans, Tesla’s National Senior Manager for Public Policy and Business Development in Canada, wrote on LinkedIn on October 13 that the program “outwardly looks like it is a first-come-first-served model.”
He said, however, that the department tells automakers their maximum expected volumes in advance.
Global Affairs Canada said it was “consulting with interested companies about the remaining quota,” without naming them. Its notice for the second period, published on August 29, already allowed it to set aside “a portion of the available quota for the use of OEMs, including new entrants.”
Week by week
The second period’s first reading came on September 25. It showed 160 vehicles for September, seven of them battery-electric cars priced at or below C$35,000 ($25,000) and 153 above that line.
By October 9 September’s total had more than doubled to 328. The increase came from 168 non-plug-in hybrid SUVs priced above C$35,000, a customs line that had recorded only one earlier batch, of 259 in July.
The fully electric lines were unchanged at seven and 153. No vehicles have been recorded in October in any line.
The First Window
The first window ran from March 1 to August 31 with 24,500 permits.
The report showed zero utilization through the spring, including a reading executed on March 18. The first imports appeared in May, as Tesla’s first Shanghai-built Model 3s arrived.
The May 29 report showed 2,910 vehicles, all battery-electric cars above C$35,000. May was later revised up to 3,510.
By July 10 the total had reached 6,531, or 26.7%. June contributed 621 vehicles and the first 10 days of July 2,400. Cheaper cars priced at or below C$35,000 appeared for the first time in June, with 465 units.
The July 17 report jumped to 9,235, or 37.7%, after 5,104 vehicles in the first 17 days of July. On July 31 the total reached 9,813, or 40.1%. That report showed the first hybrids, 259 non-plug-in hybrid SUVs priced above C$35,000.
The August 7 report crossed half the window at 12,513, after July was revised up by 300 units to 5,982. The total rose to 12,813 on August 14, 15,063 on August 21 and 15,603 on August 28, as August’s running count climbed from 2,400 to 2,700, 4,950 and finally 5,490.
The first window closed at 15,603, or 63.7%, leaving 8,897 permits unused. Under the government’s notice, those rolled into the second period, which therefore opened with 33,397.
Monthly totals
Final first-period imports were zero in March and April, 3,510 in May, 621 in June, 5,982 in July and 5,490 in August.
Monthly figures are not final when first published. May rose from 2,910 to 3,510, and July from 5,682 to 5,982. August, still in progress at the time, was reported as 4,950 in the August 21 report before settling at 5,490. September rose from 160 to 328.
Cheaper cars lead
Fully electric cars with a free-on-board value of C$35,000 or less made up 7,805 of the first window’s 15,603 vehicles. Pricier fully electric cars accounted for 7,495, fully electric SUVs and vans 44 and hybrids 259.
The C$35,000 threshold is a customs value, not a retail price. No share of the quota had to go to cheaper vehicles in the first year.
The second period has reversed that so far. Only seven of its 328 vehicles fall in the cheaper category.
How the quota works
The quota replaced Canada’s 100% surtax on Chinese-built EVs under the January agreement between Prime Minister Mark Carney and President Xi Jinping. Imports within the quota pay the 6.1% most-favored-nation tariff.
The quota covers battery-electric, plug-in hybrid and hybrid vehicles. It starts at 49,000 vehicles a year and rises 6.5% annually to about 70,000 by 2030.
Permits are shipment-specific and issued first come, first served. Ottawa began accepting applications when the quota opened on March 1. Importers can apply 30 days before a shipment arrives, and permits last up to 60 days. Only automakers, or Canadian-resident agents they appoint, can import.
From the second quota year, which starts March 1, 2027, at about 52,185 vehicles, 10% must go to EVs with a free-on-board price of C$35,000 or less. The share rises to 20%, 35% and 50% in the following years.
Who is importing
The government reports volumes by customs line, not by brand.
Tesla’s Shanghai-built Model 3 is widely reported as the main source of the battery-electric imports, after Tesla cut the car’s Canadian price to C$39,490 by switching supply from the US.
Lotus has imported Chinese-built models since launching the Eletre in the spring, and Polestar reintroduced the China-built Polestar 2 in Canada from C$69,900 ($49,900), with imports slated for September.
The hybrid entries are consistent with Ford’s return of the Chinese-built Lincoln Nautilus hybrid to Canada in August, priced from C$62,996 ($45,000). Ford did not confirm whether those vehicles used quota permits.
Chery, Geely and BYD
None of the three largest Chinese brands has started selling cars in Canada, and their timelines have shifted.
Chery Vice President Charlie Zhang told Reuters last week that the company is preparing to launch in Canada early in 2027. In May he had targeted the fourth quarter of 2026, and in September the brand became the first Chinese automaker to set a launch window on its Canadian website.
He had aimed for two fully electric models in British Columbia, Ontario and Quebec, subject to regulatory approval. Chery did not explain the change. Its Omoda & Jaecoo Canadian website still said “coming late 2026” after the new date was given, and it names no models, prices or dealers.
Chery is also weighing local production. “Even without the American market, Canada is a market that is worth having a factory for manufacturing,” Executive VP Guibing Zhang told Bloomberg. He gave no timeline, and Chery is considering idle capacity at existing plants or local partners.
Geely said on October 9 that its main Geely Auto brand had formally entered the Canadian market and would introduce its first vehicles in 2027, a week after launching a Canadian website.
Geely Auto Canada, based in Markham, Ontario, said its leadership team is in place and that it is building a retail and service network with “highly trusted and experienced partners.” It named no models, prices or dealer locations.
“Canada represents an important next step in Geely Auto’s international growth,” said Bryan Wu, Managing Director of Geely Auto Canada. Brands controlled by Geely’s parent, including Volvo, Polestar and Lotus, already sell in Canada.
BYD has announced no Canadian launch date, models, prices or dealers. Its Canadian website, run by BYD Canada Company Limited in Markham, presents the company and its FLASH Charging technology but lists no vehicles.
Its terms say it does not take orders, reservations or deposits. The site also warns visitors about unauthorized websites and accounts falsely claiming to represent BYD Canada.
BYD has been testing four models in Canada and hiring for its Canadian operations, including sales, marketing, network development and charging infrastructure roles, based in the Toronto area and Vancouver.
Dongfeng’s Canadian distributor, North World Industry, has said it is targeting entry in 2027. Automotive News Canada reported on October 8 that BYD, Chery, Geely and Dongfeng were nearing launch with dealer agreements.
Chinese brands have scaled back their Canada plans since May as the quota’s size limits profits, and Canadian buyers remain cautious.
With Tesla’s orders paused and no new entrant due before 2027, the 33,069 remaining permits are set to go largely unused unless the government reallocates them.
