Canada’s import quota for Chinese-built EVs crossed the halfway mark in early August, with a new government report showing 12,513 of the 24,500 first-window permits utilized — representing 51.1% of the allocation that runs through August 31.
A Global Affairs Canada (GAC) utilization report executed on Friday shows 2,400 vehicles cleared in the first week of August alone, adding to the 10,113 recorded through the end of July.
As of August 7, 11,987 permits remained — with just over three weeks left before the window closes.
The pace marks a notable acceleration. August’s first-week figure already amounts to about 40% of July’s full-month total of 5,982 units.
Sustained over 31 days, the rate would put the month on track for one of the heaviest import periods since Ottawa opened the quota framework on March 1, with weekly flows varying sharply throughout the program.
Premium EVs Dominate
The composition of early August imports diverged significantly from July’s pattern.
Electric passenger cars with a customs value above C$35,000 ($25,100) accounted for 1,880 of the 2,400 vehicles cleared in early August, or about 78% of the month’s volume so far.
The category recorded just 957 vehicles across the entirety of July — meaning one week of August has already nearly doubled the prior month’s full tally in the higher-value tier.
Lower-value electric passenger cars — those declared at or below C$35,000 — contributed 520 units, down sharply from July’s 4,743.
The sub-C$35,000 category had dominated July at more than 79% of that month’s imports, making early August a near-complete reversal of the product mix.
Electric SUVs and passenger vans above C$35,000 registered zero in August so far, after contributing 23 units in July.
Non-plug-in hybrids — which entered the data for the first time in July with 259 vehicles — also recorded zero in the partial August data.
Early August volume consists entirely of pure battery-electric passenger cars.
July Revised Upward
The August 7 report also reveals a modest upward revision to July’s total.
The previous report executed on July 31 had shown 9,813 cumulative vehicles through the end of the month, implying a July total of about 5,682 units.
Friday’s data now shows 5,982 vehicles for July — around 300 additional units that appear to have cleared customs after the earlier report was generated but before the month was finalized in the system.
July had a mid-month surge before a pronounced slowdown in the final two weeks.
Hybrids Absence
The disappearance of hybrid imports in early August is noteworthy, given the category’s sudden arrival in July.
All 259 conventional hybrids that entered in July were classified under HS code 8703409090 — non-plug-in hybrid SUVs and passenger vans with a spark-ignition engine and a customs value above C$35,000.
Ford confirmed days later that its luxury brand had resumed Canadian sales of the China-built Lincoln Nautilus hybrid, in what appears to be the first use of the quota by an established Western automaker for a conventional hybrid model.
The Nautilus is built exclusively at the Changan Ford joint-venture plant in Hangzhou and had been withdrawn from Canada after Ottawa imposed a 100% surtax on China-built electrified vehicles in October 2024.
Lincoln’s 2026 Nautilus hybrid starts at C$62,996 ($45,200) including delivery, fitting squarely within the over-C$35,000 customs classification.
The Remaining Allocation
With 11,987 permits available and the first window closing on August 31, the quota is on pace to finish well short of its ceiling.
Filling the gap would require August imports to reach about twice July’s record level — an outcome no month has come close to supporting.
Under Notice to Importers Serial No. 1162, any unused first-window permits carry over into the second six-month period, which opens September 1 with its own 24,500-vehicle base.
A likely rollover of 8,000 to 10,000 permits would give the second window an effective ceiling approaching 33,000 to 35,000 vehicles — a materially larger pool for the brands expected to begin shipping in the autumn.
The Second Window
Several brands are offering the first tests of second-window demand.
Geely-owned premium brand Polestar reopened Canadian orders for the China-built Polestar 2 in June at C$69,900 ($50,100), with first imports slated for September — drawing on the carry-over allocation from day one.
Chinese giant BYD is assembling a Canadian retail network, targeting around 20 dealerships in the market.
However, the company has not yet confirmed a launch date or Canadian pricing.
Chery has been staging vehicles from its Omoda & Jaecoo export brand in the Toronto area since April, with certification and dealer agreements still in progress.
State-owned Dongfeng showcased six EVs at Montreal’s Old Port on July 14 ahead of a targeted 2027 entry with two sub-C$35,000 models.
Global Affairs Canada (GAC) has also ran a public consultation on whether to replace the first-come, first-served system with per-manufacturer allocations for the second window, including questions on under-utilization penalties and allocation transfers.
Tesla remains the dominant importer under the current framework, having launched a Shanghai-built Model 3 in Canada on May 1 at C$39,490 ($28,300) to exploit the 6.1% most-favoured-nation tariff — far below the 25% national-security tariff applied to US-built vehicles entering Canada.
Global Affairs Canada does not identify importers in its utilization reports.
The quota framework dates to the January agreement between Prime Minister Mark Carney and President Xi Jinping, which repealed the 100% surtax imposed in October 2024 and replaced it with a 6.1% tariff inside an annual ceiling of 49,000 vehicles, rising 6.5% per year to about 70,000 by 2030.
