Large automotive and commercial manufacturer Dongfeng Motor Group is preparing to enter Canada’s electric vehicle (EV) market, leveraging a low-tariff import quota agreement reached earlier this year between China and Canada.
Under the agreement, Canada has eliminated the 100% surtax on Chinese-made EVs for an initial annual quota of up to 49,000 units, with the quota set to expand annually. In exchange, China has simultaneously reduced import tariffs on certain Canadian agricultural products.
Previously, in 2024, then-Prime Minister Justin Trudeau imposed a 100% surtax on Chinese EVs which was on top of the existing 6.1% tariff there by significantly raising import costs and effectively blocking Chinese EVs from entering the Canadian market.
Following the recent policy adjustment, Tesla became the first automaker to extensively utilize the new quota, exporting several thousand EVs annually from its Shanghai factory to Canada.
On July 14, Dongfeng held an event at Montreal’s Old Port to showcase its electric models, including the Vigo and the Nammi Box 01, and is currently advancing regulatory certification procedures for these vehicles in Canada. Julie Mazorra Fernández (no relation to us at DSF.my), head of Dongfeng’s Canadian dealership partner North World Industry, stated that the company plans to launch two initial models as early as next year, aiming to raise brand awareness through offline events before officially commencing sales.
Moreover, Dongfeng has included local manufacturing in its long-term strategy and expressed interest in deeper collaboration with Canadian companies, including potential joint ventures. Dongfeng already operates joint-venture vehicle manufacturing plants with Stellantis and Nissan in Europe and South America.
Canadian Prime Minister Mark Carney and Minister of Industry Mélanie Joly have both voiced their hope that more Chinese enterprises will take advantage of the agreement to invest and establish production facilities in Canada. Currently, multiple Chinese automakers are conducting market research and exploring possibilities for joint ventures in the country.
