As Canada braces for the impact of steep 25% tariffs on vehicles it exports to the United States, a missed opportunity is coming back into focus. Chinese automaker BYD reportedly expressed interest in investing in Canadian manufacturing but backed off after encountering significant pushback. With Trump’s new tariffs set to take effect on April 2, some are now wondering if Canada might need BYD more than it realized.

More: Canada Freezes Musk’s $43M Tesla EV Rebate Claim After Rapid-Fire Sales, Bans Future Subsidies

China’s ambassador to Canada, Wang Di, said moves made by the Canadian government have “seriously dampened” the confidence of Chinese companies to invest locally. For example, three Chinese mineral firms have been ordered to divest their assets, TikTok’s Canadian branch has been closed, and AI firm DeepSeek has been banned, all in the name of national security.

Why Canada Shut the Door on BYD

This hardline approach toward Chinese firms—including BYD—has been framed as a move to protect domestic industry, ensure national security, and align with US concerns. American officials, including former President Biden, had warned that Chinese automakers might try to use Canada as a backdoor into the US market. But with President Trump reimposing tariffs, the rationale for walling off Chinese investment may be shifting.

A recent report by The Logic suggests that if US-Canada trade alignment is no longer a priority, Canada might do well to reconsider its position. Letting BYD invest could bring clear benefits, especially with Canadian auto jobs now potentially at risk.

“BYD had carefully thought about coming to Canada to make investment. But they met huge difficulties, restrictions and obstruction, and they had to give up the idea of investing in Canada. And I heard that they have moved to other countries, and they have been very successful there,” Wang Di told The Globe and Mail.

Read: Chinese-Owned EV Brands Gain Momentum In Europe, Collectively Outsell Tesla

“If BYD was successful in investing in Canada, then I think the result would be the Canadian consumers would have been able to enjoy the EVs with the latest technology, with very good quality and with a cheaper price. Isn’t that a good thing?,” he added.

Too Little, Too Late?

If Trump’s tariffs force car manufacturers to shift more of their production to the United States, countless jobs could be lost throughout Canada’s auto manufacturing sector. Now, it’s Canada that may need BYD more than the Chinese automaker needs it.

However, that ship might have already sailed. According to BYD spokesperson Frank Girardot, BYD does not have any plans for manufacturing in Canada and will simply continue to service the company’s buses that some transit operators in the country use.

Electric vehicles might be the future, but profitability? That’s still a rare luxury in the EV world. An interesting study has revealed that just four EV-only brands are currently operating at a profit, while many others continue to bleed money at impressive rates. It probably won’t shock anyone that Tesla and BYD are leading the charge, but some of the other top-performing names are a bit less expected.

Read: Only 1 In 7 Of Today’s Chinese EV Brands Will Be Profitable By 2030, Analysts Claim

The study examined the operating income ratios of major EV brands and found that in 2024, Tesla reported an operating margin of 7.2%, putting it just ahead of BYD at 6.4%. However, while Tesla’s margin has declined since 2023, BYD’s has been climbing. If that trajectory holds, as many analysts expect, BYD could soon surpass Tesla in operating profitability.

Vertical Integration Pays Off

Key to the growth of both of these brands is that they are vertically integrated, helping them to scale and reach profitability sooner. The only other two brands analyzed by the study to have reached profitability are China’s Li Auto and the Series Group, which includes the Seres, Aito, and Landian brands.

While none of the other EV brands analyzed turned a profit in 2024, a few are edging closer. Zeekr, part of the Geely group, reported an operating margin of -8.5% last year. But with sales on the rise, it may soon begin delivering profits for its parent company. Xpeng and Leapmotor are also moving in the right direction, having more than halved their losses between 2023 and 2024.

Nio is another important player in China’s EV market, but not a profitable one. Its 2024 operating margin came in at over -30%, suggesting it still has a long climb ahead before it sees black ink on its balance sheet.

Tesla Stands Alone Outside China

Tesla remains the only non-Chinese EV brand to hit profitability. Polestar hasn’t crossed that threshold yet, though it did manage to reduce its losses in 2024. Similarly, Rivian also remains in the red, though like Polestar, it continues to receive substantial external funding.

At the other end of the spectrum, Lucid holds the dubious honor of running the steepest losses in the EV sector. According to data from Rho Motion, its 2024 operating margin was -374%. That’s an improvement from over -500% the year before, but still, not exactly a sign of financial health. Heavy backing from Saudi Arabia is helping Lucid stay afloat despite the massive shortfalls.

What a difference a year makes. Rewind the clock to early 2024 and Tesla’s European arm was basking in the glory of becoming the best-selling electric brand in the region for the whole of 2023, and the first company to put an EV – the Model Y – on top of the the overall sales chart.

Now, fresh sales data from 28 key markets, including the EU, the UK, Norway, and Switzerland, shows that not only are Tesla’s sales down, but the American EV brand is also being collectively outperformed by Chinese-owned automakers.

Related: Tesla’s European Sales Have Collapsed, Down 45% As EV Market Surges 31%

Figures from Jato Dynamics reveal Tesla sold 15,700 cars in February 2025, down from 28,100 a year earlier, a drop of 44 percent against an EV market that was up by 26 percent to 164,100 units. Chinese-owned brands clocked up 19,800 sales this February, throwing serious shade in Tesla’s direction and leaving us in no doubt that China is making serious inroads into the European car market. And it’s only just started.

Tesla’s Market Share Takes a Hit

Tesla’s poor performance cut its market share to 9.6 percent, its worst February showing for five years, and the automaker’s year-to-date market share is down from 18.4 percent to 7.7 percent compared with 2024’s numbers. One partial explanation for that is the arrival of the facelifted Model Y ‘Juniper,’ which was revealed in January of this year, but wasn’t immediately available in Europe. It’s only natural that buyers would want to wait for the new-look SUV.

Model Y sales fell 56 percent to 8,800 units, while Model 3 sales fell by a less extreme (but still worrying) 14 percent to 6,800 units, which Jato says indicates Tesla’s overall slide is less to do with anti-Elon Musk sentiment than the imminent arrival of the the new Y.

EV Sales by Brand, Feb 25

VW, Chinese Brands, and the New Wave

Whether the new model can fully reverse the slide remains to be seen, but we doubt it. The Juniper changes aren’t that comprehensive and Chinese brands (and legacy Western ones) are only increasing their attack on Tesla. BYD’s sales grew 94 percent to 4,436, Polestar was up 84 percent to 2,405, and newcomer XPeng logged 1,034 sales, representing an increase of 259 percent from February 2024.

The best-performing brand in terms of EV sales, however, was VW, whose registrations boomed 180 percent to 19,600. The German brand’s ID.4 was the third-best-selling EV behind the Model 3 and Model Y, and VW,’s ID.7 and ID.3 were in fifth and sixth spot, separated from the ID.4 by Renault’s Car of the Year-winning 5.

EV Sales by Model, Feb 25

The latest crop of EVs have almost combustion-like driving ranges, and now BYD is attempting to remove one of the other major barriers preventing some ICE car drivers from making the switch. Electric vehicles built around its new Super E-Platform are able to ‘fill up’ as quickly as you can tank-up your petrol vehicle.

Launched this week in China the new architecture and matching chargers use their 1,000-volt technology to pump out/accept a peak of 1,000 kW. That enables EV drivers to add 249 miles (400 km) of additional driving miles in only 5 minutes.

Related: Xpeng’s New G6 Can Add 280 Miles Of Range In Just 10 Minutes

Even those with only as passing interest in EVs will know that is insanely rapid. In the West most EVs still rely on 400-volt tech and can’t handle more than 200 kW of juice. The few that can, like cars using Hyundai-Kia’s E-GMP platform, have 800-volt electrics, and are able to make sense of of 350 kW chargers, though they never actually draw that many watts.

The announcement came during a livestream event held at BYD’s Shenzen HQ when founder Wang Chuanfu committed to the rollout of more than 4,000 megawatt charging units across China, without giving any kind of timeframe.

Drivers of 350 kW cars in the West will be aware that you can’t always make use of your 800-volt EV’s maximum charging capabilities so BYD will need to get those chargers out quickly, which is easier said than done. Dropping in 1 MW chargers is a lot more complicated than adding a 50 kW unit, and costs a ton more money due to the infrastructure upgrades needed. 

BYD also debuted the Han L and Tang L EVs, which make use of the Super E-Platform. The Han sedan and Tang SUV lineups both start with a single rear motor making 500 kW (670 hp / 680 PS) for less than $40k, while dual-motor AWD versions generate 810 kW (1,086 hp / 1,101 PS), Car News China reports.

Images: BYD

BYD’s Ocean series continues to grow and will soon include a new EV, known as the Seal 06. The Chinese car manufacturer already sells a hybrid version of this same model, but this new electric variant is arguably even more important for the brand. Pricing and available details have yet to be confirmed.

Unlike many other electric sedans on the market, BYD has not installed a massive battery pack in the Seal 06 EV to try and eke out as much range as possible. Chinese data reveals the base model only has a small 46.08 kWh battery pack, which is only a tiny bit larger than the 45 kWh battery offered in the small BYD Dolphin hatchback. Meanwhile, the flagship Seal 06 EV features a larger 56.6 kWh pack, which is still relatively small.

Read: BYD Wants To Work With Tesla To Shift Industry To EVs

Models equipped with the 46.08 kWh pack offer a quoted range of 292 miles (470 km), while the 56.6 kWh option boosts that figure to 339 miles (545 km) on the CLTC cycle. While the relatively small battery pack does somewhat limit the driving range of the EV, the upside is that the packs weigh in at just 772 lbs (350 kg) and 904 lbs (410 kg) each, meaning the car’s curb weight varies between 1,670 kg – 1,800 kg (3,682 lb – 3,968 lb). That’s still plenty of heft, but it is relatively light for an electric sedan of this size.

The sedan is 4,720 mm (185.8 inches) long, 1,880 mm (74 inches) wide, and stands 1,495 mm (58.8 inches) tall with a 2,820 mm (111-inch) wheelbase. By comparison, the regular Seal introduced a couple of years ago and sold internationally is 4,800 mm (189 inches) long, 1,875 mm (73.8 inches) wide, and 1,460 mm (57.4 inches) tall, with a larger 2,920 mm (115-inch) wheelbase.

Visually, the Seal 06 EV looks very similar to the DM-i plug-in hybrid model, with a few refinements taking on the front fascia. It also has similar taillights and a rear light bar to that model, as well as the BYD Seal 06 GT hatchback.

Over the past five years, BYD , the Chinese electric vehicle giant, has gone from an underdog to a full-fledged automotive juggernaut. In fact, it’s making legacy car brands look like they’re scrambling to catch up. While Tesla is arguably its biggest rival, BYD’s executive vice-president, Stella Li, seems to think there’s room for cooperation, at least when it comes to taking down the internal combustion engine cars.

“Our common enemy is the internal combustion engine car. We need to work together . . . to make the industry change,” she told the Financial Times in an interview.

Read: BYD Is Coming After Ford F-150 With A Full-Size Pickup

Of course, Li isn’t talking about teaming up with Tesla to co-develop a new vehicle. Instead, she believes that major EV manufacturers can work together to drive the industry forward as a whole.

During the interview, she also described the Chinese car market as “the homeland for innovation,” noting that the government will support foreign companies looking to expand into China, even amid rising trade tensions with the European Union and the United States.

 “[The] Chinese government is more open, so maybe there is a lot of wrong perception here,” she added.

BYD’s Growing Pains and Political Pushback

While BYD’s sales continue to surge, it’s not without its challenges. The European Union has slapped tariffs on the company, along with other Chinese EV makers, and is pushing for Chinese companies to transfer intellectual property to European businesses in exchange for subsidies. Meanwhile, the Chinese government is actively encouraging local companies to limit their investments in foreign manufacturers.

The European Commission argues that China’s growing presence in the EU market is primarily fueled by a range of subsidies throughout the production process. These include discounted lithium and battery supplies from state-owned enterprises, tax breaks, favorable financing from state-controlled banks, and even cheap land to build factories.

Despite these issues, BYD is pushing ahead with its manufacturing plants in Hungary and Turkey, which will allow it to skirt the EU’s tariffs.

Li mentioned that she doesn’t get too caught up in politics, emphasizing that consumers will always choose the better product. She’s not worried about the possibility of being shut out of the US market, either. Clearly, BYD is confident in its continued growth and expects to overthrow the internal combustion engine sooner or later.

Last year, the BYD Group sold an impressive 4.27 million EVs and PHEVs globally, establishing itself as one of the world’s largest car manufacturers. Not only are its vehicles incredibly popular throughout its home market of China, but its international presence continues to grow, particularly in Europe. Not willing to rest on its laurels, BYD is pondering further production expansion on the Old Continent.

During a recent interview in Germany, BYD executive vice-president Stella Li revealed that in the next 18-24 months, the company will decide if it needs a third manufacturing plant in Europe. If it does go ahead with a new plant, it would further bolster its presence in the market and allow the brand to skirt EU tariffs recently enforced on it.

Read: Locked Out Of The US, Chinese Carmakers Are Taking Over The Middle East, Latin America, Africa And Asia

Last October, the EU imposed an additional 17.4% tariff on BYD after a lengthy investigation researching how the Chinese government has provided subsidies to local carmakers. This extra tariff comes on top of the existing 10% import duty on cars and takes away part of the competitive pricing edge that BYD has over many of its rivals. That’s where the European plants will come in.

Li provided no indication as to where a potential third production site could be located while speaking with the media, Reuters reports.

BYD is currently building a large plant in Hungary that should begin operations later this year. This site will be able to produce as many as 350,000 EVs and PHEVs annually. Last year, BYD also agreed to a $1 billion deal to set up a manufacturing site in Turkey. This slightly smaller plant will have the capacity to build 150,000 vehicles a year and should create around 5,000 jobs when production begins towards the end of 2026.

Chinese automaker BYD has just released a new feature that feels ripped from the pages of a sci-fi movie: a roof-mounted drone docking station. It’s called the Ling Yuan system, and it promises to turn your ordinary drive into an episode of “National Geographic” — or maybe “Top Gun” if you’re feeling dramatic.

The system will cost you ¥16,000 ($2,200), but that price tag buys you a 4K drone, a sleek docking station, and the ability to capture stunning aerial footage of your daily commute.

More: Existing BYD Owners Furious After Car Prices Drop And Features Get Better

This tech was first teased on the Yangwang U8 SUV in 2023, but the Bao 8 SUV from the Fang Cheng Bao brand is the first to actually offer it. And don’t worry, BYD isn’t just aiming this at tech geeks or those with more money than sense—they want to make this high-flying gadget accessible to a broader range of buyers. So, expect to see it rolled out across more BYD brands down the road.

A 4K Drone That Takes Off While You’re Still Driving

The Ling Yuan system was developed in collaboration with Chinese drone maker DJI. It includes a 4K drone and a docking station, covering an area of 0.29 m² (3.1 square feet) on the roof of the vehicle. This drone hangar has an aerodynamic shape and measures 215 mm (8.5 inches) tall.

Once you press that magic button, the roof opens, and the platform lifts, letting the drone soar to the skies. And here’s where it gets really cool: You can deploy and control the drone while the car is in motion—up to 25 km/h (16 mph). Then, the drone can follow the vehicle at speeds of up to 54 km/h (34 mph) to capture the perfect footage, whether you’re cruising down a highway or navigating off-road trails.

When the filming is over, the drone returns to the roof-mounted hangar, where it automatically charges. According to the company, a 20-80% charge takes just 30 minutes, so occupants won’t have to wait long before the next flight.

The drone can be controlled directly from the vehicle’s infotainment display or via the Ling Yuan app, available for smartphones. Additionally, AI software helps organize and edit the footage, making it easier to share on your favorite social media platform.

In addition to the Yangwang U8 and Fang Cheng Bao Bao 8, other models already shown with the system on their roofs include the Fang Cheng Bao Bao 5, Titanium 3, Denza N9, BYD Tang L, and BYD Sealion 07 DM-i. This list is expected to grow in the future as more models are added.

At this point, it’s unclear whether the Ling Yuan system will make its way outside of China. But hey, if you’ve been dreaming of filming your next road trip from the air in your BYD SUV, you might just have to pack your bags for a little international adventure.

Photos and Videos: BYD / Weibo