by Kai Cui
After years of rapid expansion, the global electric vehicle market is clearly losing momentum. BloombergNEF expects consumers to buy 24.3 million passenger EVs this year, just a 12 percent increase from 2025 and the weakest annual growth rate since the pandemic shock of 2020. Yet beneath this global slowdown lies a striking divergence: while cooling domestic demand in China and structural adjustments are underway in Europe and the United States, Chinese electric vehicle exports are still accelerating.
The China Passenger Car Association (CPCA) forecasts auto exports to rise 20 percent this year, driven largely by electric vehicles from BYD, Tesla’s fiercest global rival. UBS analysts go further, projecting Chinese EV shipments to surge by more than 50 percent to 3.7 million units. In other words, even as the global EV market downshifts, Chinese manufacturers are shifting into a higher gear overseas.
The reasons are no mystery. Chinese EV makers now combine two advantages that are difficult for Western incumbents to match at the same time. First, scale and supply-chain integration allow them to price vehicles far below European and North American competitors. Second, they are pulling ahead technologically, not only in batteries but also in software, vehicle integration, and artificial intelligence.
At CES 2026, Chinese companies showcased this shift in confidence: Geely unveiled its Full-Domain AI 2.0 system, and Great Wall Motors paired an AI-powered cockpit with a 4.0-liter V8. Dreame Technology even introduced an electric concept supercar dubbed the Kosmera Nebula 1. These developments underscore how Chinese companies are no longer competing solely on price but increasingly on technology and ambition.
Canada now finds itself at a pivotal moment in this shift. With relations between Ottawa and Beijing showing signs of stabilization, the door to Chinese EVs is opening again. Prime Minister Mark Carney recently announced that tariffs on Chinese-made electric vehicles would fall from 100 percent to 6.1 percent, with annual imports capped at 49,000 units. Ontario Premier Doug Ford initially urged a boycott of Chinese EVs but has since adopted a more pragmatic tone, stressing that foreign automakers—including those from China—should invest locally, create jobs, and bring technology with them.
That raises the obvious question: which Chinese brands are most likely to arrive first, and which are best positioned to stay?
BYD: The Chinese Giant That Has Overtaken Tesla Globally
Source: BYD
BYD, whose name stands for “Build Your Dreams,” is the most obvious candidate. In 2025, it overtook Tesla to become the world’s largest EV maker, selling 2.26 million battery-electric vehicles. Overseas sales jumped 145 percent year-on-year, topping one million units, and in markets such as the UK and Germany, BYD has already outsold Tesla.
Its edge lies in ruthless cost control and vertical integration, from batteries and chips to final assembly, enabling ultra-affordable models that still include advanced driver-assistance features. For example, BYD’s Seagull starts at around just USD$8,000 with a self-driving system, while Tesla’s entry-level Model 3 starts at $35,000. In an era of high inflation, that value proposition would resonate strongly with Canadian buyers, particularly in mass-market segments long neglected by legacy automakers. Hence, it is not surprising that BYD has been approved to sell in Canada just weeks after Carney’s announcement.
Chery: The Fastest Mover with a Localisation Playbook
Source: Chery
Chery appears to be the quickest to act. The owner of the Omoda and Jaecoo is already hiring in Canada and preparing a local presence, signalling a long-term commitment rather than a test-market approach.
With global sales exceeding 2.8 million vehicles, including more than 900,000 new-energy vehicles, in 2025 and extensive experience operating overseas factories, from a manufacturing site in Barcelona to partnerships with Jaguar Land Rover and Nissan in South Africa and the UK, Chery has refined a localization strategy that aligns neatly with Canadian and Ontario priorities around domestic production, employment, and supply-chain resilience, giving Chery a higher level of political and industrial acceptance.
Leapmotor: Low-Cost EVs and Quality Service Provider
Source: LeapMotor
Leapmotor represents a different route into mature markets. Instead of building everything from scratch, it has partnered deeply with Stellantis in Europe, gaining immediate access to established dealer, logistics, and after-sales networks. As a result, within just one year of entering Europe, Leapmotor achieved a breakthrough even in Germany, one of the most competitive auto markets, which has since become its largest European market by sales share.
This approach allowed Leapmotor to enter Germany and other EU markets with unusual speed. Its core model, the T03, targets the sub-€20,000 compact-car segment, where it faces little direct competition in Europe. At the same time, through Stellantis’ dealer network, Leapmotor established more than 120 sales outlets in Germany within a year and achieved 24-hour spare-parts delivery. For Canada—a vast country where after-sales service relies heavily on systemized networks—this capability is particularly critical.
Geely: The Most “Internationalised” Chinese Automaker
Source: Geely
From the perspective of long-term stability and local integration, Geely may be the most internationalised of all Chinese automakers hence stands out for its depth of international experience. Through its holdings in Volvo, Polestar, Lotus, LEVC (formerly The London Taxi Corporation), and Aston Martin, Geely has spent years navigating the Western market. Compared with other Chinese brands, it is far more familiar with the regulatory regimes, consumer preferences, and labour systems—an especially important factor in tightly regulated markets like Canada.
XPeng: The Tech-Forward Challenger
Source: XPeng
XPeng represents the technology-led path. With local assembly under way in Austria, a growing dealer footprint in Germany and strong reviews for models such as the G6 and G9, XPeng is positioning itself as a credible alternative to Tesla rather than a budget brand.
Its strengths lie in software, intelligent driving and user experience, reinforced by high-profile investments in frontier technologies like flying cars that has captured global attention last year with its first public flight demonstration in Dubai. In Canada, XPeng would likely target urban, tech-savvy consumers just like other markets—competing on innovation rather than price alone.
Connecting Brands to New Customers
Here’s the thing about Chinese EVs entering Canada: brands like BYD might have global street cred, but that doesn’t automatically win over Canadian buyers. These companies need partners who actually get Canada’s multicultural landscape—not just throw around buzzwords about diversity.
That’s where we come in. At AVC, we’ve spent years figuring out how to authentically connect brands with Canada’s diverse communities. Whether it’s crafting messaging that resonates with specific cultural groups or building influencer partnerships that feel genuine (not forced), we know how to help Chinese automakers land properly in this market.
And let’s be honest—Canada’s legacy auto brands are about to get a reality check. When disruptors show up with better tech at lower prices, your grandfather’s brand loyalty won’t save you. These established players need to completely rethink how they talk to customers, what they stand for, and why anyone should choose them over the new kids on the block.
Bottom line: 49,000 Chinese EVs is just the warm-up. This market shift is happening whether you’re ready or not. The question is—are you going to figure out how to win in this new landscape, or watch from the sidelines? Get in touch with us to ensure you don’t miss the significant opportunity ahead.