Chinese electric vehicle manufacturer BYD is considering entering the Canadian automotive market, according to regulatory filings submitted earlier this month. This potential move by BYD comes amid deliberations by Canadian officials on imposing tariffs on vehicles imported from China, following similar actions by the United States and the European Union.

In a regulatory document filed with both the federal and Ontario governments, BYD expressed its intent to seek advice on matters related to its market entry into Canada for the sale of passenger electric vehicles. While the specific timeline for BYD’s entry into the Canadian market remains unclear, the filings indicate that the company is preparing for a potential launch, despite the looming possibility of new tariffs.

The consideration of tariffs by Canada, announced in June, is part of a broader strategy to align with its Western allies in response to what they perceive as significant subsidies granted by the Chinese government to its domestic EV industry. Canadian authorities have voiced concerns that these subsidies could lead to a flood of Chinese-made EV imports, which might undermine local investments and efforts to transform the Canadian automotive sector.

Ottawa initiated a public consultation period on July 2 to gather opinions and gauge the potential impact of imposing tariffs. The consultation is part of a broader evaluation of how China’s support for its EV sector could affect the Canadian market. The government noted that unchecked Chinese subsidies could result in an exponential increase in imports, adversely impacting the local EV market and its development.

In recent developments, BYD has been active in other markets as well. In May, the company unveiled the Shark, a mid-size hybrid-electric pickup truck, in Mexico. Despite facing new U.S. tariff hikes on Chinese-made EVs, BYD’s regional chief emphasized that the company was not currently targeting the U.S. market, which might indicate a strategic pivot towards other regions, including Canada.

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