March 30, 2026 – Chinese automaking giant BYD is taking steps toward cementing its place in Canada’s EV market, with plans to open up to 20 dealerships across the country.

That scale of expansion is notable for a single automaker given Canada’s current import cap of 49,000 electric vehicles per year, rising to 70,000 in 2031, shared among all Chinese car companies, writes Automotive World. “Indeed, the infrastructure bet only makes commercial sense if BYD is confident that the quota will expand, and is positioning itself now to have the retail footprint in place when it does.”

For comparison, Tesla, which has been selling EVs in Canada since 2009, has 38 stores listed on its website. Other EV makers like Lucid and Rivian have one to four locations, while Vietnamese manufacturer Vinfast has five stores and a growing service network.

BYD’s initial efforts are focused in the Greater Toronto Area, but the company expects to expand to other locations in Vancouver, Montreal, and Calgary, reports The Globe and Mail.

The preparation follows a shift in Canada’s EV trade policy. Previously, under then-prime minister Justin Trudeau, Canada imposed 100% tariffs on Chinese-made EVs following pressure from the Joe Biden government in the United States. However, Canada’s newer government led by PM Mark Carney reduced tariffs to 6.1% this January, easing trade tensions after China imposed import duties on Canadian canola, lobster, crab, and peas.

The revised agreement allows 49,000 Chinese-made EVs into Canada per year at the lower 6.1% rate, the quota set to rise in five years. With half of the quota reserved for vehicles priced under C$35,000, the arrangement is expected to lower costs for car buyers. It is also expected to encourage joint venture investment in Canada’s EV supply chains.

BYD’s cars are more affordable than most North American EVs or vehicles imported from other international EV makers like Polestar and Volvo. However, Chinese-built EVs are not eligible for buyer rebates under Canada’s Electric Vehicle Affordability Program (EVAP) launched in February.

Critics of Chinese EV imports have raised concerns about potential impacts on domestic jobs and the Canadian auto sector,  national security, and labour exploitation.

As of now, the imported EVs represent less than 3% of the roughly 1.8 million new vehicles sold in Canada per year. They are an even smaller fraction compared to the 2.26 million battery-only passenger EVs that BYD sold in China last year.

Farid Ahmad, CEO of Dealer Solutions Mergers & Acquisitions in Markham, Ontario, where BYD is looking at three potential dealership locations, said the current quota is too small to sustain many dealerships, adding that Chinese companies prefer to operate stand-alone shops rather than joint ventures.

“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.

“We have been engaged with a number of Chinese manufacturers that are looking to establish their dealer network here in Canada,” he added.

Beyond retail, BYD is exploring manufacturing possibilities in Canada, including building a new facility or taking over a legacy North American carmaker, reported Bloomberg News. In this space, too, BYD’s preference is to operate the facility as a solo venture.

BYD is not pursuing plans to export to the U.S., which executive vice president Stella Li described as a “complicated environment” with high tariffs and a ban on connected car technology.

According to Driving, BYD is further along in navigating Canada’s regulatory framework than other Chinese automakers, and is the only one to have registered production facilities with Transport Canada’s Appendix G pre-clearance registry, a prerequisite for vehicle imports.