Late last week, Geely officially announced plans to launch commercial operations in Canada in 2027. It is no surprise that Geely is the first Chinese EV company to do so: Geely-owned Lotus EVs were the first Chinese-owned, Chinese-manufactured vehicles shipped to Canada under the quota deal Canadian Prime Minister Mark Carney negotiated in Beijing in January. That deal cut the tariff on up to 49,000 Chinese-made EVs a year from 100 per cent to 6.1 per cent.
Geely laid the groundwork well before this announcement, trademarking several of its models — including its Chinese brand Zeekr — in Canada as early as 2021.
Interestingly, job postings this summer, while tied to the Geely Auto brand, appeared under the Zeekr International name, suggesting this may be one of the brands to launch next year.
Geely’s entry into Canada could raise tensions with Washington, whose stance on Chinese EVs is firm in principle but inconsistent in practice: it banned Polestar while letting Geely-owned Volvo continue to sell. The U.S. ambassador to Canada has warned that quota vehicles “are not going to [be allowed to] cross the border.”
The future of Chinese EVs in Canada
Geely’s carefully worded announcement centres on building a “Canadian retail and service network,” with no mention of building cars here.
This is consistent with the playbook Geely (and competitor Chery) have followed in other markets: export their vehicles to build brand recognition, test demand and learn local certification processes, then consider local operations. Where operations have followed, they have tended to involve assembly rather than manufacturing, and partners have learned little beyond factory floor plans.
This approach may benefit Canadian consumers, but Ottawa’s stated goal for the quota is broader: encourage Chinese joint-venture investment that supports Canadian auto jobs and expands Canada’s EV supply chain.
As I recently told CBC/Radio-Canada, the benefits to Canada’s auto manufacturing sector remain unclear. Globally, Chinese EV companies have shown little appetite for technology transfer or localized production.
As Chinese automakers seek to expand in Canada, agreements must include enforceable commitments on production, employment, and supplier integration, paired with ongoing monitoring to ensure these commitments are met.
This is not a China-specific issue. As the ongoing Stelco dispute with its U.S. owner illustrates, Canada must be prepared to enforce such commitments across all foreign investment projects to protect and strengthen its industries.
— Elizabeth Donkervoort, Senior Advisor, China Programs, APF Canada
