Chinese-owned sports car maker Lotus plans to enter the Canadian market under a newly introduced reduced tariff scheme for Chinese electric vehicles, according to chief executive Feng Qingfeng.
The move follows a decision by the Government of Canada to allow up to 24,500 electric vehicles imported from China to enter the country at a 6.1% tariff rate during the next six months, significantly lower than the 106.1% tariff previously imposed.
“We will be the first Chinese brand to enter Canada (under the new tariff). The Canadian market opportunity is too precious to miss. Since we’ve taken the lead, we must capitalise on this advantage. The growth in Canada may compensate for some of our losses in the Middle East,” Feng said.
Lotus is seeking to expand in Canada as geopolitical tensions in the Middle East affect its operations in that region. Feng said the company has temporarily suspended some vehicle exports there due to the ongoing conflict.
“The current conflict has slightly affected us, as local dealers regularly update us on the situation. We’ve paused some vehicle exports to the Middle East,” he said.
To support its market entry, Lotus has already opened six dealerships in Canada and plans to expand the network to about twelve locations by the end of the year. According to Feng, production for the Canadian market has already begun, and shipments could start soon after the government releases detailed implementation guidelines.
“We’ve already begun production. If Canada releases detailed tariff implementation guidelines in March, our vehicles can be exported immediately,” he said.
The expansion comes shortly after Lotus introduced its Lotus Tuned Specification (LTS) engineering standard, a proprietary vehicle tuning approach derived from motorsport. The first model using the standard will be the plug-in hybrid Lotus For Me, derived from the Lotus Eletre and scheduled to launch in China later this month before reaching European markets by mid-year.
The vehicle features a 2.0-litre turbocharged engine delivering 205 kW, supplied by Horse Powertrain, combined with an electric drivetrain.
Lotus’ planned Canadian entry follows a broader trade arrangement between China and Canada that allows up to 49,000 Chinese electric vehicles to be imported into Canada annually at the reduced tariff rate.
The permits will be distributed in two phases of 24,500 units each between March 1–August 31 and September 1–February 28, using a first-come, first-served system. Imports exceeding the quota will again face the 100% special tariff introduced by Canada in 2024.
Canadian officials say the arrangement is intended to encourage future cooperation and investment in the country’s EV sector. In a government statement, authorities said the policy could “trigger significant new Chinese joint-venture investments in Canada with trusted partners over the next three years, securing and creating jobs in the automotive industry for Canadian workers and ensuring the robust development of Canada’s electric vehicle supply chain.”
Source: CarNewsChina, Lotus