Source: Chery

China’s Chery Automobile is moving into concrete preparations for entering the Canadian market, using recruitment and team-building to advance early-stage operations, as Canada adjusts its tariff and quota framework for Chinese electric vehicles.

Back in mid-January, Canadian Prime Minister Mark Carney announced during a visit to China that Canada will grant a quota of 49,000 Chinese-made electric vehicles per year, with vehicles within the quota subject to a 6.1% Most-Favored-Nation tariff rate. Carney also said that more than half of Chinese-made EVs are expected to be priced below CAD 35,000 and that the quota could be increased over the next five years.

Canada’s quota-based opening is reportedly expected to benefit Tesla and Geely-backed Polestar in the short term, while also creating a pathway for Chinese domestic automakers to begin market entry preparations.

Chery has begun hiring for approximately 10 North America–oriented positions, including roles in complete vehicle engineering, safety, electronic and electrical architecture, intelligent driving systems, and regulatory certification. The roles typically require multiple years of experience, fluency in English, and experience in diverse working environments.

Product research and engineering development will continue to be centered in Wuhu, Anhui Province. At the same time, Chery is using a dual-location structure for product and market roles, with positions based in both Wuhu and Toronto. Candidates for the Canadian product and market roles are expected to start in March or April.

Product definition and engineering decisions will remain led by headquarters in China, while the Toronto-based team will focus on user research, regulatory interpretation, and early-stage discussions with potential channel partners. The two sides are expected to operate in parallel until conditions support a fuller operational footprint in Canada.

Senior automotive industry analyst Mei Songlin said Chery’s actions show it has moved into a substantive preparation phase, accelerating hiring to take advantage of the current export window for electric vehicles.

Chery is one of China’s largest vehicle exporters and has described itself as a long-standing pioneer in overseas expansion. The company has said it has ranked first among Chinese-brand passenger vehicle exporters for 23 consecutive years. In 2025, Chery exported 1.34 million vehicles, up 17.4% year-on-year.

Chery’s overseas expansion is supported by a portfolio of export-oriented sub-brands that it uses to segment markets and price points. In addition to the core Chery brand, the group operates Jetour, which focuses on SUVs and adventure-style models; Exeed, positioned as a higher-end brand in select overseas markets; and Omoda and Jaecoo, which are designed primarily for international distribution. The group also operates iCar, an electric-focused brand that is marketed under different names in some export regions.

Chery’s overseas expansion began in 2001 with exports to the Middle East and later expanded across South America, Africa, Europe, Southeast Asia, and other regions. However, it has not yet built large-scale operations in North America.

Data for December 2025 showed that Chery ranked first in exports to the European Union, the United Kingdom, and four European Free Trade Association countries — Iceland, Liechtenstein, Norway, and Switzerland — with 28,600 vehicles.

During the same period, monthly exports to the Middle East, Central and South America, CIS countries, and Africa each exceeded 20,000 units. By contrast, North America accounted for just 2,531 vehicles.

Chery’s North American growth remains constrained by the trade environment, market access barriers, and limited brand premium, making the region unlikely to become a major short-term growth driver.

Canada itself remains a relatively modest auto market. Market data showed that Canada recorded vehicle sales of 1.9 million units in 2025, up 2% year-on-year. The market is highly concentrated, with General Motors, Ford, Toyota, and Hyundai-Kia together holding more than half of total market share.

Chery has experience in cold-weather markets such as Russia, including vehicle reliability and low-temperature adaptation, but much of that experience is tied to internal combustion and hybrid models. Its relevance for pure electric vehicles remains to be validated in Canada’s climate conditions.

By contrast, BYD (HKG:1211) has taken a compliance-based strategic positioning approach. BYD has been registered in Transport Canada’s Appendix G system, with passenger vehicles manufactured in Shenzhen and Xi’an listed as potential export sources.

This registration appears to be a strategic placeholder rather than a confirmed market entry. BYD would still need to complete multiple certifications, including Canadian Motor Vehicle Safety Standards, battery safety, charging interface standards, and data and software compliance, to obtain final approval to sell vehicles.

During Carney’s China visit, Canada’s Minister of Industry Mélanie Joly met in Beijing with executives from BYD, Chery, and Magna, encouraging investment in Canadian manufacturing within three years.

Canada is seeking not only vehicle imports but also companies with full vehicle and supply chain capabilities that could localize production. Local manufacturing is unlikely in the near term. Chery is still in a “0 to 1” phase in Canada, with companies typically entering via exports, building dealer networks, and later assessing local production based on demand and policy.

Canada’s transparent regulatory system and integration with U.S. supply chains make it a lower-risk North American entry point than the United States, positioning it as a potential staging ground for longer-term expansion — a door that Chery is now clearly testing.