Dongfeng Motor is preparing to enter the Canadian electric vehicle market, becoming the latest Chinese automaker to pursue sales under Canada’s quota system for China-built EVs.
The state-owned automaker will showcase several electric models at an event in Montreal this week while completing vehicle certification required for sales in Canada, according to a Bloomberg report.
Launch Planned for Next Year
Julie Mazorra Fernández, director of North World Industry, which will distribute Dongfeng vehicles in Canada, said the company expects to introduce its first models after completing the approval process.
“We are working on that, and maybe next year we will be ready to launch the first two models.”
Canada imposed a 100% tariff on electric vehicles manufactured in China in 2024, in addition to the existing 6.1% import duty.
Earlier this year, however, Canada and China reached an agreement allowing up to 49,000 China-built electric vehicles to enter the Canadian market annually under the standard 6.1% most-favored-nation tariff. The arrangement was made in exchange for China removing tariffs on selected Canadian agricultural products.
According to Bloomberg, Tesla has so far been the primary manufacturer utilizing the quota by exporting vehicles from its Shanghai factory to Canada.
Prime Minister Mark Carney has said he wants Canadian consumers to have access to a broader range of electric vehicle brands. Chinese manufacturers including BYD and Chery have also indicated plans to use the quota.
Company Evaluates Long-Term Manufacturing
Mazorra Fernández said Dongfeng intends to build consumer awareness before beginning commercial sales.
The company will display several models at an event at Montreal’s Old Port, including the Dongfeng Vigo, sold in China as the Nammi 06, and the Nammi Box 01, marketed domestically as the Nammi 01.
She also said local manufacturing could become part of Dongfeng’s long-term strategy in Canada.
“They are very interested not only to bring the cars, but also to have the opportunity to have more commercial relations here with Canadian companies.”
Dongfeng already operates international manufacturing partnerships through joint ventures with Stellantis and Nissan in markets including Europe and South America.
Several other Chinese automakers are also preparing to enter the Canadian market. Lotus, owned by Geely Holding Group, is expected to become one of the first Chinese-owned brands to deliver vehicles under the new import arrangement.
Meanwhile, BYD has said it could begin Canadian sales next year, while Nissan is reportedly evaluating exports of electric vehicles produced by its Dongfeng Nissan joint venture in China.