Lotus said Canada’s decision to slash tariffs on Chinese-made electric vehicles will allow the company to cut the planned retail price of its Eletre SUV by “approximately 50%,” positioning the luxury brand to rapidly expand sales in the country.
The announcement makes Lotus the first Chinese EV manufacturer to publicly detail how it will capitalize on the trade agreement signed Friday between Canadian Prime Minister Mark Carney and Beijing.
The agreement allows up to 49,000 Chinese electric vehicles into Canada annually at a 6.1% tariff rate — down from the 100% duty set in 2024.
In return, China will slash duties on Canadian canola to approximately 15% from more than 80%.
Chief Executive Officer Qingfeng Feng said Canada “has always been a strategically vital market” for Lotus, citing the country’s consumer appetite for performance vehicles.
The new policy, he added, “creates a more open and fair market environment for international auto brands.”
Feng said the company would move quickly to capitalize on the shift.
Lotus plans to “enhance investment in Canada to explore any potential tactical advantages,” he said, while pursuing “growth in a disciplined manner that aligns with market development and creates sustainable value.”
Canadian Pricing
Lotus introduced the Eletre in Canada in April 2024, with the standard model priced at CAD$126,800 and the more powerful Eletre R at CAD$178,500.
The Eletre Carbon — the highest-performing and most dynamic variant with 918 horsepower and a top speed of 265 km/h (164mph) — launched in North America in September 2024 starting at CAD$313,500.
A 50% price reduction under the new tariff regime would bring the standard Eletre to approximately CAD$63,400, the Eletre R to around CAD$89,250, and the Eletre Carbon to roughly CAD$156,750 — positioning Lotus to compete more directly with established luxury EV brands in Canada.
The Eletre was first delivered globally in China in March 2023, at the 75th anniversary of the British sportscar maker.
Only Chinese EV Above $80,000
Lotus said it is the only mobility provider with a Chinese-made EV entering the North American market above the $80,000 price segment.
The Eletre, the brand’s first all-electric hyper SUV, successfully completed rigorous North American market homologation in 2024, giving the company a head start over competitors who may now seek Canadian market access under the new tariff regime.
The company operates six authorized dealerships across Canada, offering a full range of services from classic internal combustion engine models to its latest electric products.
Lotus said this pre-established market access and channel development positions it to swiftly translate the policy benefits into market share.
With a global retail network of 210 stores across 61 countries, Lotus said on Saturday that it has laid a solid foundation for seizing the Canadian opportunity.
The company expects wholesale deliveries in Canada to achieve “exponential growth” under the revised pricing strategy, combined with what it calls its “For the Drivers” philosophy of delivering an ultimate driving experience.
US Officials Push Back
The deal has drawn sharp criticism from US officials, raising questions about whether Chinese vehicles entering Canada could eventually find their way into the American market.
President Donald Trump endorsed the agreement when asked about it Friday.
“It’s okay, that’s what he should be doing,” he said of Carney. The comment stood in contrast to the harsher tone taken by other members of his administration.
US Trade Representative Jamieson Greer called the deal “problematic for Canada” and predicted the country would regret it “in the long run.”
Greer has been a vocal critic of Chinese automotive subsidies and has pushed for maintaining the 100% tariffs the US imposed on Chinese EVs in 2024.
Transportation Secretary Sean Duffy echoed that sentiment Friday, saying Canada would regret allowing Chinese EV imports.
Canadian Divisions
The agreement has also exposed divisions within Canada.
Ontario Premier Doug Ford, whose province houses the country’s automotive manufacturing base, said he was not consulted before the announcement.
He called the deal a “knee jerk reaction” and a “big, big problem” for Canada’s auto sector, warning it could give China a “foothold” in North America and jeopardize Canadian access to the US market.
Conservative Leader Pierre Poilievre accused Carney of flip-flopping on China, noting the prime minister had previously described Beijing as Canada’s “biggest security threat” before pivoting to what he now calls a “strategic partnership.”
Carney Defends Deal
Prime Minister Carney has defended the agreement as a pragmatic response to US tariffs on Canadian goods, arguing that Canada needed to diversify its trade relationships.
He said he expects Chinese automakers to invest in Canadian manufacturing within three years and predicted that more than 50% of the vehicles imported under the quota would be priced below $35,000 within five years.
