China's BYD Plans Canadian EV Launch Despite Tariff Concerns

BYD Co., a Chinese electric vehicle manufacturer, is attempting to join the Canadian market at the same time as Prime Minister Justin Trudeau's administration is attempting to restrict auto imports from the Asian giant.

The company's lobbyists, who charge less than $10,000 for their electric vehicles in China, notified Canada's federal register that they want to speak with legislators and government representatives in support of BYD's planned entry.

As to the filing, the lobbyists intend to provide advice to the Canadian government regarding issues of BYD's anticipated market entry into Canada to sell electric vehicles, start a new enterprise, and imposing taxes on EVs.

In a statement released on Wednesday, a spokesman for Finance Minister Chrystia Freeland stated that the government "firmly believes that action is necessary to level the playing field for Canadian auto workers and for Canada's EV industry to compete."

"To guarantee that Canadian workers and EV supply chains are shielded from unfair competition from China's deliberate, state-directed policy of overcapacity and lack of strict labor and environmental standards, all options—including restricting transactions and investment from Chinese sources in the Canadian EV supply chain—are on the table,” stated Katherine Cuplinskas.

Separately on Wednesday, BYD and Uber Technologies Inc. announced a collaboration to add 100,000 EVs to the ride-hailing company's platform. The long-term strategy is to begin in Europe and Latin America and work its way out to other nations, including Canada.

Rather than the far lower duties the EU is considering, some Canadian government officials and industry representatives say Canada will need to slap tariffs on Chinese electric vehicles that are similar to the U.S. rate of 102.5%. The individuals who spoke with Bloomberg asked not to be named because no decisions had been made in full.

Because of the close ties between Canada's and the United States' auto supply chains, the Trudeau administration was forced to harmonize its car regulations with that of its biggest trade partner. Additionally, it has promised automakers like VW AG billions of dollars in government funding in exchange for their building portions of their electric vehicle supply chains in Ontario and Quebec.

Strict tariffs on Chinese EVs are supported by labor organizations like the Automotive Parts Manufacturers' Association, which claim Beijing's massive industry subsidies give Beijing an unfair advantage. However, to accelerate consumer adoption, climate organizations such as Clean Energy Canada argue that more accessible EVs are required.

A request for comment from BYD was not immediately answered. Autonews.com broke the story first by saying that the corporation had recruited lobbyists.

The Office of the Commissioner of Lobbying for Canada's website carried the lobbying notice, and on July 24th, the campaign got underway. BYD Canada is represented by Christine McMillan, Cameron Doherty, and Bridget Howe of Crestview Strategy.

In an interview with Bloomberg earlier this month, Freeland made a suggestion that the government would pursue more extensive trade sanctions against China. Producers of steel and aluminum met with her last week. China has not refrained from taking trade retribution against the nation in the past.