Nearly a third of Canadians are open to buying an EV, but high sticker prices remain the biggest barrier to adoption, according to a survey published by Canadian financial comparison platform Rates.
The study was conducted six weeks after Canadian prime minister Mark Carney signed a new trade agreement with China allowing up to 49,000 China-made EVs into the market at a 6.1% tariff — far below the 100% duty in place until then.
The Leger survey of 1,659 Canadians, conducted in late February, found that 30% expressed some level of interest in purchasing an EV.
Of those, 17% said they would consider a purchase within the next five years, while the remaining 13% were open to the idea but not in the near term.
More than half — 51% — said they were not interested, and 11% were unsure.
Among respondents who were either interested or unsure, 59% cited the purchase price as their top concern. Charging access and driving range followed at 54%, while 45% worried about repair and maintenance costs. Insurance was cited by 23%.
In January, Canada and China reached a bilateral trade agreement that replaced the 100% surtax Ottawa had imposed on Chinese-made EVs in late 2024 when Canada matched the Biden Administration move.
New EV Supply Pipeline
The Canada-China deal, effective March 1, is structured in two application windows including 24,500 vehicles from March to August 2026, and another 24,500 — plus any unused permits from the first phase — from September 2026 to February 2027.
Permits are issued on a first-come, first-served basis through Global Affairs Canada, with enforcement handled at the border by the Canada Border Services Agency.
The quota is set to rise gradually to 70,000 units per year by 2030.
Under the agreement, more than half of the imported vehicles must carry an import price below $35,000 CAD (approximately $25,300 USD) by that date.
As EV reported earlier last month, no affordability requirement applies in the first quota year, and only 10% of imports need to meet the price threshold in years two and three.
In exchange, China reduced tariffs on Canadian agricultural exports, including canola seed (from roughly 84% to approximately 15%), lobster, crab, and peas. Chinese automakers must also establish joint ventures for vehicles or batteries within Canada within three years.
However, BYD Executive VP Stella Li told Bloomberg that a joint venture “will not work” and that BYD would insist on owning and operating any Canadian facility outright.
Who Benefits First
The immediate beneficiaries are not Chinese brands but manufacturers that already meet Canadian Motor Vehicle Safety Standards and have established sales and service networks in the country.
Tesla, which shipped approximately 44,000 China-built vehicles to Canada in 2023 before the 100% surtax took effect, is widely expected to be the first mover.
As EV reported last month, the company pulled all US-made Model 3 inventory from its Canadian website in preparation to resume imports from its Shanghai Gigafactory under the 6.1% rate.
Geely Holding Group’s portfolio of brands — including Volvo, Polestar, and Lotus — is similarly well positioned.
Volvo and Polestar have established Canadian dealer networks and have previously shipped China-built vehicles to the country, while Lotus is preparing what could be the first Chinese-manufactured vehicle to reach Canadian customers, targeting the third quarter for deliveries of its Eletre SUV, as EV reported.
Bloomberg has recently reported that Transport Canada is expected to accelerate certification for newly approved Chinese EVs, with approval timelines shortened to roughly eight weeks.
For Chinese-headquartered brands, the path is longer.
BYD, Chery Group, and Geely’s own-brand operations are all confirmed to be preparing for Canadian market entry.
But they first need to complete several steps: individual vehicle models require CMVSS compliance documentation filed with Transport Canada, dealers must sign distribution contracts, warranty support and parts supply networks must be established, and vehicles need to be registrable in each province.
BYD has the most advanced regulatory groundwork, with its Shenzhen and Xi’an passenger car plants already listed in Transport Canada’s Appendix G registry — a prerequisite for imports.
The 49,000-unit cap represents less than 3% of Canada’s annual new car market.
BYD is rumoured to open 20 dealerships in Canada within the year, with Toronto expected to be its first location.
Among survey respondents who were either interested or unsure about buying an EV, 56% said they would consider a Chinese-built model if it were more affordable.
Their top motivators were affordability (31%), openness to emerging brands (31%), and performance (18%). Interest was highest among younger adults aged 18 to 34 and among men, with roughly two-thirds of both groups saying they would consider a Chinese EV.
However, 23% of potential buyers said they were not familiar enough with Chinese brands to consider a purchase.
Geopolitical concerns also linger: a separate Leger survey released in February found that 63% of Canadians were worried that stronger China-Canada auto ties could prompt retaliatory US tariffs.
Iran Conflict and Fuel Prices
The survey’s timing coincides with a period of sharply elevated fuel prices driven by the US-Iran conflict that began in late February.
The effective closure of the Strait of Hormuz sent global oil prices surging, with West Texas Intermediate crude climbing 47% before a two-week ceasefire was announced on Tuesday night.
Rates’ own insurance quoter data showed EV interest rising 33% year-over-year in February and climbing to 40% in March — suggesting the combination of the Iran-driven fuel shock and the China trade deal is pulling Canadian EV interest out of its 2025 slump.
Rebates Return
In February, Ottawa scrapped the national sales mandate and replaced it with a new incentive-driven approach under the Electric Vehicle Affordability Program.
The programme offers rebates of up to $5,000 for battery-electric and fuel-cell vehicles and up to $2,500 for plug-in hybrids, with eligibility capped at a transaction price of $50,000 — unless the vehicle is Canadian-built.
The rebates will decrease annually until 2030.
However, Chinese-built EVs are not eligible for the $5,000 federal incentive, limiting their competitiveness against domestically produced or free-trade-partner vehicles even under the reduced tariff.
