BYD, a Chinese EV maker, recently filed a regulatory document in an attempt to enter the Canadian market as the nation considers regulatory moves on China’s EV market, according to multiple media reports. 

Automotive News Canada first reported that lobbyists acting on behalf of BYD registered with Canada’s federal and Ontario governments. The article says lobbyists note the registration is to “advise on matters related to the expected market entry of BYD into Canada for the sale of passenger electric vehicles, and the establishment of a new business, and the application of tariffs on EVs.” 

The move would “drastically change the complexion of the North American electrical-vehicle segment,” the article says. 

BYD takes the step as the Canadian government has started reviewing possible regulatory action to protect its EV market from China. 

“Canada, following in the footsteps of the United States and the European Union, said in June it was considering imposing tariffs on Chinese-made electric vehicles as it seeks to align itself with its allies against what the West views as a heavily subsidized Chinese industry,” Reuters reports. 

President Joe Biden announced 100% tariffs on Chinese EVs in May. The New York Times reports that the European Union imposed tariffs of up to 38% last month. 

“After years of government support for the sector, Chinese manufacturers are adept at mass-producing electric vehicles,” according to the New York Times. “They have established dependable supply chains while working out the kinks to reduce prices.” 

MSN previously reported that American manufacturers are concerned by EV production in China, specifically a BYD vehicle named the Seagull. 

The tiny EV sells for about $12,000 in China, drives well, and is well manufactured, MSN says. A shorter-range version of the vehicle costs less than $10,000

Automotive News reports the company passed Tesla as the world’s top-selling EV in 2023. 

Elon Musk said earlier this year that Chinese EV makers could “demolish” their competitors if there were no trade barriers, according to an NBC article. 

It’s widely reported that BYD has said it doesn’t plan to import to the United States anytime soon. 

Joe McCabe, CEO of U.S.-based AutoForecast Solutions, told Automotive News Canada that the “U.S. auto market is BYD’s ‘Holy Grail,’” but the company is likely to use both Canada and Mexico as “ports of entry.”

“Following the recent introduction of BYD electric buses in Canada — through which the company is ‘slowing trying to dilute any anti-Chinese sentiment’— it will be ready to move into the heart of the auto market.”

The Alliance for American Manufacturing released a paper in February titled “On a Collision Course” focused on the threat of the Chinese EV market to the U.S. auto industry. 

“The introduction of cheap Chinese autos, which are so inexpensive because they are backed with the power and funding of the Chinese government, to the American market could end up being an extinction-level event for the U.S. auto sector, whose centrality of the national economy is unimpeachable,” the paper says. 

The paper says tariffs currently keep Chinese automakers out of the U.S. and European Union but the companies are searching for solutions. 

“BYD, which became the world’s largest EV manufacturer in 2023, is building a factory in the heart of the European Union and is among half a dozen Chinese companies preparing to manufacture in Thailand, thereby gaining access to nearby markets through regional trade pacts,” the paper says. 

Chinese companies are also spending on plants in Mexico through which they could access the United States, the paper says. 

The paper urges federal policy and financial support of the U.S. auto market as a necessity to compete with China. 

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