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Canada’s China Deal Promised Affordable EVs, But $100,000 SUVs Are First Off The Boat

  • Canada is preparing to accept the first of 49,000 Chinese EVs heading there this year.
  • Lotus waved off 18 Canada-bound, Cayenne-sized Eletre SUVs from Wuhan on May 6.
  • Under a deal between Canada and China, EV import tariffs were cut from 106.1% to 6.1%.

Geely is officially heading to Canada, though don’t bother looking for the brand name at a car dealership strip north of the border just yet. The Chinese brand’s access to the Canadian market comes through its Lotus subsidiary, which sent 18 Eletre SUVs to North America on May 7.

This isn’t the first time China-built Lotus cars, or China-built cars of any brand, have been offered in Canada. Polestar, Lotus, and others previously sold vehicles that originated in the Asian country. But the 18 Eletres will be the first to hit Canada’s roads since a trade deal between the two countries was struck at the beginning of the year.

More: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

Imports from China effectively ceased after 2024 when then prime minister Justin Trudeau followed US president Joe Biden’s lead by slapping a 100 percent tariff on Chinese EVs, and that was on top of the 6.1 percent levy previously applied.

In retaliation, China applied tariffs on canola that brought Canada’s agricultural industry to its knees. Canola brings billions of dollars into the Canadian economy every year, so it’s no surprise that new prime minister Mark Carney was motivated to strike a deal, even as North America’s domestic automakers – which also form a large part of Canada’s economy – begged him not to.

Small Import Numbers for Now

 Canada’s China Deal Promised Affordable EVs, But $100,000 SUVs Are First Off The Boat

Under the terms of the new trade deal, Canada will allow just 49,000 EVs in from China with a tariff rate of 6.1 percent in year one, rising to 70,000 in year five. In return, and in addition to relaxing tariffs on canola, China agrees to ease duties on Canadian steel and aluminum. But the trade truce also opens the door to Chinese brands building cars in Canada.

Lotus hasn’t revealed the exact mix of Eletre specs currently heading across the Pacific, but the brand’s Canada retail site currently only lists three trims based around the same 603 hp (611 PS / 450 kW) powertrain and priced between $119,900 CAD ($87,600 USD) and $139,900 CAD ($102,200 USD). Other countries also get a 905 hp (918 PS / 675 kW) version.

Hybrid Is A Recent Addition

 Canada’s China Deal Promised Affordable EVs, But $100,000 SUVs Are First Off The Boat

Both are purely electric, though Lotus has reacted to a less-than-buoyant luxury EV market (and a really terrible North American one) by revealing a new Eletre hybrid. Powered by a 2.0-liter petrol engine and two electric motors making a combined 933 hp (946 PS / 696 kW), it was unveiled in China at the beginning of 2026, and is expected to be rolled out to Western markets later this year.

Lotus isn’t the only company rushing to take advantage of the new trade terms, which Canada’s government originally touted as a way to bring more affordable EVs to the country and help the nation meet its climate goals. Geely is making noises about bringing its own brand, as well as others, such as Zeekr, to Canada. BYD and Chery’s cars have been spied on North American roads, and Tesla is preparing its first batch of Chinese-built Model 3s for Canadian drivers, Drive Tesla Canada reports.

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Lotus

Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

  • Up to 49,000 Chinese EVs yearly qualify for lower Canadian tariffs.
  • The first 24,500 reduced-tariff permits stay open through August 31.
  • Chery, Geely, and BYD are lining up new EV launches for Canada.

Worried that automakers like Tesla could vacuum up the bulk of its low-tariff Chinese EV quota in one gulp, the Canadian government is reportedly rethinking how to dole out the import permits before they all end up in one company’s hands.

Under Canada’s new trade arrangement with China, up to 49,000 China-built EVs can be imported each year at a slashed 6.1 percent tariff, a steep drop from the punishing 100 percent duty. The first batch of 24,500 permits has been on the table since late March and is supposed to stay available through August 31, handed out on a first-come, first-served basis.

Read: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

According to Bloomberg, not a single permit has actually been issued yet. That window is about to get crowded, though, because Tesla just confirmed it will start selling a Chinese-built Model 3 in Canada at a sharply lower price. The new entry point is CA$39,490 before destination, roughly US$29,007, which guts the old floor set by the Model 3 Long Range AWD at CA$79,990, or about US$58,700.

Canada Wants Equitable Access For All Chinese Brands

 Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

In addition to Tesla, through its Volvo and Polestar brands already operating in Canada, may also be positioned to secure part of the initial allocation. Once the second half of the 49,000 permits becomes available after August 31, officials may revise the system and assign specific reduced-tariff allocations to individual automakers, giving more brands access to the program.

These brands could include newcomers to the Canadian market, such as BYD and Chery. According to unnamed officials, the quota system may eventually expand to favor companies that establish operations in Canada, including local assembly facilities.

News of these potential changes comes just after it was revealed firms including BYD, Cheyr, and the Geely-owned Zeekr brand have launched a hiring spree across Canada, eager to quickly set up shop and start selling their vehicles locally.

 Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

  • BYD reportedly plans 20 Canadian sales sites during 2026.
  • Zeekr has started hiring senior staff for Toronto operations.
  • New tariff rules sharply lower Chinese EV import costs there.

The floodgates are creaking open in Canada. Just as Tesla relaunched its Chinese-built Model 3 in the country, several of China’s most aggressive automakers are putting the pieces in place to follow it through the door. Geely, Chery, and BYD are all moving on the Canadian market.

As part of its preparations, Chery has brought two SUVs from its Jaecoo brand to Toronto, equipped with Ontario manufacturer license plates. Autonews Canada identified the vehicles as Jaecoo E5s, an all-electric SUV that starts at about $37,000 in Australia, where the currency is roughly at parity with the Canadian dollar.

While these vehicles are thought to be in Canada only temporarily, their appearance comes shortly after the automaker sent almost two dozen local dealer representatives to the Beijing Auto Show, giving them a firsthand look at the Chinese market.

Read: Americans Pay $37K For The Cheapest Tesla, Canada Got A Chinese One For $29K

It’s not just Chery that’s making important moves in Canada. According to a report from last month, BYD plans to open 20 sales locations this year. The company reportedly intends to work with local partners to establish those stores. It’s also said to be actively considering building its own factory in Canada, or perhaps acquiring one from an established brand.

Zeekr Gears Up

 Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

In the not-too-distant future, Canadians could have several new models from the Geely Group to choose from. One of the most exciting brands prepping for a local launch is Zeekr, with confirmation that it recently began hiring for seven senior-level positions in late April, all based in Toronto and including positions in sales, legal, marketing, and aftersales. The hiring push also includes product and network development roles.

Geely is also looking to hire someone to serve as Zeekr’s head of network development, responsible for evaluating dealer business plans and establishing a dealer operations guide.

The rush for Chinese brands to launch in Canada comes just months after the two nations signed an important new trade deal. Through this deal, tariff rates for 49,000 EVs imported from China will be slashed from 100 percent to just 6.1 percent. Importantly, the quota of 49,000 eligible vehicles will be allocated on a first-come, first-served basis, meaning automakers need to act quickly. Only 24,500 permits will be issued in the first six months of the program.

 Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop
Zeekr Mix

China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse

  • BYD’s average price cuts reached about 10 percent across its range in March.
  • China’s auto industry is still grappling with serious overcapacity issues.
  • Officials have warned carmakers against triggering a damaging price war.

The Chinese auto industry has spent the better part of two years waiting for the price war to burn itself out. It hasn’t, and car companies are showing no signs of relenting. Facing declining sales, BYD is instituting significant price cuts, as are key rivals Geely and Chery.

Almost a year has passed since Chinese authorities sat down with the heads of more than a dozen carmakers and pressed them to call off the price war before it became a race to the bottom. The country’s market regulator called for efforts to “comprehensively rectify ‘involutionary’ competition,” borrowing a phrase Premier Li Qiang has used for the industry’s increasingly self-defeating behaviour.

Read: Dozens Of Chinese EV Brands Could Collapse In The Next Year

It appears little has changed. Data from Bloomberg reveals the average price reduction across BYD models increased to 10 percent in March. Meanwhile, Geely and Chery are running discounts of around 15 percent, though those have held roughly steady through the past twelve months.

China Doesn’t Have Enough Car Buyers

 China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse

Overcapacity within China’s automotive sector is at the root of the problem. Last year, approximately 23 million new vehicles were sold in the country, but its car factories have the capacity to produce 55.5 million vehicles a year. This has prompted many local brands to ramp up vehicle exports. Last month, EV exports from China more than doubled.

Now facing greater scrutiny from regulators, companies, including BYD, are being forced to pay suppliers much more quickly than in the past. Prior to local authorities getting involved, automakers had been delaying invoice fulfillment for months at a time, allowing them to offer deep discounts to spark sales. Now, invoices must be paid more promptly, increasing liabilities on carmakers’ balance sheets. For BYD, this has pushed its debt-to-equity ratio to 25 percent.

“It seems to be good for the customers, but it’s not — manufacturers are losing money,” the secretary general of the International Organization of Motor Vehicle Manufacturers, François Roudier, said. “It hurts the full system.”

 China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse

Volvo’s Chinese Parent Built A $14K Sedan Americans Can’t Touch

  • The cheapest Galaxy A7 variant opens today at just over $14,000 in China market.
  • A plug in hybrid pairs a 1.5 liter four cylinder with an electric motor system.
  • The electric version uses a 58 kWh battery and a 215 hp mounted motor up front.

Over in China, Volvo’s parent company Geely isn’t just selling a slew of innovative and affordable hybrid and electric SUVs, but it’s also helping to keep the three-box sedan alive. One of its most appealing and cheapest models is the Galaxy A7, which has just been updated and is available in plug-in hybrid and all-electric guises.

There’s nothing particularly remarkable about the design of the sedan, but it’s hard to argue with the fact that it looks quite nice. The PHEV and EV models have the same classy headlights and light bar, but are distinguished by different grilles and intakes. The EV features a small lower grille finished in black and a pair of black trim accents, whereas the hybrid version sports additional air intakes and silver accents.

Read: Geely Claims Its New AI-Driven Hybrid Tech Hits 106 MPG, Beating Toyota’s Best

Around the back, it borrows cues from other Geely models like the Starray EM-I and the global market EX5. There’s a familiar LED light signature stretching across the tail, paired with minor differences in the lower bumper sections depending on whether you pick the EV or the hybrid.

Cheap And Efficient

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Of course, it’s not the design of the Galaxy A7 that’s worthy of attention, but rather the price and the specs. The all-electric version opens at 112,800 yuan, roughly $16,500, for the A7 EV 550 Premium. It runs a 58 kWh battery and a front-mounted motor producing 215 hp. On paper, that modest battery still delivers up to 342 miles or 550 km of range, with energy consumption quoted at just 11.4 kWh per 100 km.

Shoppers wanting a few more luxuries can opt for the Galaxy A7 EM 550 Excellence. It has the same powertrain but is priced from 119,800 yuan ($17,500).

Hybrid Options

 Volvo’s Chinese Parent Built A $14K Sedan Americans Can’t Touch

Then comes the part that feels almost provocative. The plug-in hybrid starts even lower, from a measly 97,800 yuan, or about $14,300, for the A7 EM 150 Enjoy. From there, trims stretch up to 131,800 yuan, around $19,300, for the A7 EM 235 Starship.

At the entry point, a 1.5-liter naturally aspirated four-cylinder producing 110 hp works alongside an electric motor and single-speed transmission, delivering a combined 235 hp. An 18.4 kWh battery allows up to 93 miles or 150 km of electric-only driving. Opt for the larger 28.3 kWh pack and that figure rises to 146 miles or 235 km.

It is not the most glamorous sedan on sale, but when something this usable lands at this price, the usual arguments about why sedans are fading start to look a little thin.

Geely Galaxy A7 PHEV
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Lynk & Co Built A Ferrari-Sized GT That Stretches Itself By 4 Inches When You Push A Button

  • Lynk & Co debuts its first GT concept at the Beijing Auto Show.
  • Low-slung 2+2 EV features active aero and foldable screens.
  • Electric RWD setup allows 0-62 mph sprint in 2 seconds.

Lynk & Co’s production range has, until now, played it safe with SUVs and sedans. That may be about to change. The Geely-owned brand is marking its 10th anniversary with the “Time to Shine” GT concept at the 2026 Beijing Auto Show.

At 4,780 mm (188.2 inches) long, the coupe lands in roughly the same footprint as the Ferrari 12Cilindri, though it trades the V12 theatrics for a fully electric setup. The proportions still do the heavy lifting, with a long dash-to-axle ratio, a low, sculpted stance, and properly planted rear haunches.

More: Volvo Gives Its European Dealers Something New To Sell Without A Volvo Badge

The design does that familiar thing we’re seeing from some Chinese concepts, pulling in a few well-known ideas and blending them together. Up front and along the profile, there’s a passing resemblance to the Ferrari Amalfi, while the rear leans into an Aston Martin-style look.

The real talking point is its shape-shifting tricks. Tap a button on the center console and the rear wing rises, while the front and rear bumpers extend, stretching the car by 100 mm (3.9 inches) to chase extra downforce. At the same time, the suspension drops by 15 mm (0.6 inches), and the digital displays retract, clearing the cabin of distractions when it matters.

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Inside, the 2+2 cabin is finished in white leather, offset by carbon fiber accents. The digital cockpit leans hard into the futuristic brief, pairing two screens in the instrument cluster with three more across the center console, though it hasn’t abandoned physical controls entirely.

More: This Chinese SUV Now Boasts Europe’s Longest Electric Range In A PHEV

While technical specifications remain under wraps, Lynk & Co has confirmed an electric rear-wheel-drive setup capable of dispatching 0–100 km/h (0–62 mph) in 2 seconds flat. There’s also talk of an AI-driven digital chassis, tuned with track-focused intent, though what that actually amounts to remains unclear.

Taken as a whole, the GT underlines the brand’s motorsport credentials, something it has built through its success in TCR Touring Car Championship. Lynk & Co joined the series in 2019, effectively picking up where the now-defunct Volvo Polestar Racing left off.

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What’s interesting is that this electric GT may be more than a one-off design exercise. Lynk & Co says it plans to “use feedback from the public and its community to help shape any future decisions regarding powertrain options and potential production.”

More: Volvo’s Favorite Tuner Just Crossed Over Into China’s EV Scene

If it does get the green light, the model could end up taking aim at the Denza Z from BYD, along with established sports cars like the Porsche 911 and the Mercedes-AMG GT. At least in theory, as this is the sort of company where you don’t just arrive, look pretty, and expect a seat at the table.

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