The performance-oriented Lotus Eletre electric crossover is expected to see its Canadian price fall by around 50% following Canada’s decision to sharply reduce tariffs on a limited number of Chinese-made electric vehicles, according to Lotus Technology.
Canada announced on January 16 that it would lower tariffs on up to 49,000 Chinese-built EVs annually to a most-favoured-nation rate of 6.1%, down from 100%. The move followed Prime Minister Mark Carney’s visit to China and represents a significant shift in Canada’s EV trade policy.
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The Lotus Eletre is currently the only Chinese-manufactured electric vehicle sold in North America with a price exceeding $80,000. In Canada, the sole available trim, the Eletre Carbon, is priced at C$313,500 ($225,720), a level that has limited its competitiveness. By comparison, the model starts at 548,000 yuan ($78,635) in China.
High tariffs had made the Eletre more expensive than several ultra-luxury internal combustion SUVs, including the Lamborghini Urus, which starts at about C$305,000 in Canada. Under the revised tariff regime, Lotus Technology said the recommended retail price of the Eletre in Canada could be reduced by roughly half. Based on current pricing, this would imply a starting price of around C$156,750 ($112,850).
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At that level, the Eletre would be priced closer to premium performance SUVs such as the Porsche Cayenne GTS, which starts at approximately C$134,800 in Canada, potentially improving the model’s market position.
Lotus Technology said in a statement that the tariff change is expected to significantly improve sales prospects in Canada. The company currently operates six authorised dealerships in the country and sells both electric and internal combustion models. It added that existing vehicle homologation would allow it to respond quickly to the new policy.
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Other automakers are also expected to benefit from the tariff reduction. Bloomberg has reported that Chinese-built models from Tesla, Volvo, and Polestar could qualify under the revised framework. Chinese manufacturers BYD and Nio’s Firefly sub-brand are also exploring potential entry into the Canadian market.
Under the bilateral agreement, Canadian authorities said more than half of the permitted Chinese EV imports are expected to be priced below C$35,000 within five years, signalling a broader push to expand access to lower-cost electric vehicles while maintaining import limits.