BYD Co. Ltd. has applied for a permit to import its vehicles in Canada following the reduced tariff agreement between Ottawa and Beijing.
On Thursday, BYD had registered its factories in Shenzhen and Xi’an as potential exporters to Canada, filings from the automaker to Canada’s transport regulator, Transport Canada, showed.
Canada had earlier announced that it would let over 49,000 EVs into the country from China for a reduced tariff rate of 6.1% as part of the agreement, with the number potentially expanding to over 70,000 in the future, amid criticism from President Donald Trump and Transport Secretary Sean Duffy.
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The news comes as Tesla could benefit from selling its EVs in Canada, as the Mark Carney-led government scrapped the EV mandate in favor of revised fuel economy standards. The government has also brought back its iZEV incentive program with rebates up to CA$5,000 (approximately $3,650) on a CA$50,000 (approximately $36,500) vehicle.
Tesla, which sells its vehicles via 39 outlets in the country imported from its Shanghai facility, could benefit from the lower tariffs despite being a U.S.-based company.
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Meanwhile, overseas sales for the Chinese automaker continue to be a positive spot as BYD sales surged 165% in the European market, which saw Tesla decline over 17%.
However, the company’s declining domestic sales could pose a challenge for the world’s largest EV maker as fellow Chinese automaker Geely Automobile Holdings Ltd. outsold BYD for the second consecutive month in China, as the former sold 76,000 more units than BYD during the first two months of 2026.
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