Chinese Carmaker Dongfeng Is Preparing to Sell EVs in Canada

A Dongfeng Liuzhou Motor Co. Vigo electric vehicle displayed at the International Automotive and Supply Chain Expo in Hong Kong, China, on Thursday, June 12, 2025. The expo runs through June 15. Photographer: Chan Long Hei/Bloomberg Photo by Chan Long Hei /Bloomberg

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(Bloomberg) — Dongfeng Motor Corp. is the latest Chinese carmaker getting ready to enter the Canadian market under the low-tariff quota for electric vehicles negotiated by Prime Minister Mark Carney earlier this year.

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The Chinese state-owned company will show off some of its EV models at an event in Montreal this week. Dongfeng is in the process of certifying its cars through regulators for sale to customers in Canada.

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“We are working hard on that, and maybe next year we’ll be ready to introduce the first two models,” said Julie Mazorra Fernández, director of North World Industry, which will be the distributor of Dongfeng vehicles in Canada.

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In 2024, Carney’s predecessor, Justin Trudeau, essentially banned Chinese-made EVs by slapping a 100% duty on them on top of the existing 6.1% tariff rate. The decision forced Tesla Inc. to change its supply chain and prevented Chinese brands from getting a foothold in Canada. 

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Then, in January, Carney announced a pact with Chinese President Xi Jinping. Canada scrapped the 100% surtax on as many as 49,000 Chinese EVs for an initial one-year period in exchange for China dropping its own duties on some Canadian agricultural products. In future years, Canada is set to gradually increase the number of Chinese cars it allows under the low tariff rate.

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To this point, Tesla is the only company making widespread use of the import quota, shipping thousands of cars made at a factory in Shanghai. But Carney has said he wants to see a wide range of EVs on Canadian roads, and Chinese firms such as BYD Co. and Chery Automobile Co. have said they hope to start using the quota soon.

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Dongfeng wants to get Canadian consumers familiar with its products before moving toward sales, Mazorra Fernández said. She said the event, taking place Tuesday at the Old Port of Montreal, will feature models such as the Vigo and the Nammi Box 01.

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Manufacturing in Canada may also be part of Dongfeng’s longer-term plans, she said. The company already has joint ventures with Stellantis NV and Nissan Motor Co. to build cars in other markets, including Europe and South America.

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“They are very interested not only to bring the cars, but also to have the opportunity to have more commercial relations here with Canadian companies,” Mazorra Fernández said.

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Carney has claimed his pact with Xi will eventually lead to “considerable new Chinese joint-venture investment in Canada with trusted partners.” Industry Minister Melanie Joly visited China last month and said carmakers there are studying the Canadian market for potential manufacturing partnerships. 

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