The Canadian government has announced that it will allow up to 24,500 electric vehicles (EVs) from China to enter the country at a significantly reduced tariff rate over the next six months. Lotus has emerged as the first manufacturer to express interest. In Chinese media, Lotus CEO Feng Qingfeng stated: “We will be the first Chinese brand to enter Canada (under the new tariff). The Canadian market opportunity is too precious to miss. Since we’ve taken the lead, we must capitalise on this advantage. The growth in Canada may compensate for some of our losses in the Middle East.”
This announcement comes just days after Lotus introduced its so-called LTS (Lotus Tuned Specification) standard—a proprietary engineering tuning norm derived from motorsport, designed to ensure ‘consistent driving dynamics’. The first vehicle to feature this standard is the plug-in hybrid Lotus For Me, derived from the Eletre, which is set to launch in China at the end of March and in European markets by mid-year. The ‘For Me’ model is powered by a 2.0-litre turbocharged engine delivering 205 kW, supplied by Horse Powertrain. This engine is combined with an unspecified electric drivetrain.
However, alongside this long-planned launch, the Geely-owned brand faces challenges due to the escalating political situation in the Middle East. According to Feng, Lotus has temporarily suspended its exports to the region. “The current conflict has slightly affected us, as local dealers regularly update us on the situation. We’ve paused some vehicle exports to the Middle East,” the CEO stated. Instead, the focus is now shifting to Canada. Lotus is reported to have already opened six dealerships in the country and plans to increase this number to around twelve by the end of the year. “We’ve already begun production. If Canada releases detailed tariff implementation guidelines in March, our vehicles can be exported immediately,” Feng added.
Lotus’s market entry follows recent diplomatic and economic developments between China and Canada. As part of this, the Canadian government, led by Prime Minister Mark Carney, has issued the first permits for imports under the recently negotiated EV deal with China. Between 1 March and 31 August this year, up to 24,500 permits will be issued, allowing automakers to import their electric vehicles from China at a tariff rate of just 6.1 per cent instead of 106.1 per cent. The allocation will follow a first-come, first-served principle.
In January, China and Canada agreed in principle to allow the import of up to 49,000 Chinese electric vehicles at a 6.1 per cent tariff rate into the domestic market within one year. In practice, Canada plans to allocate a quota of 24,500 units per half-year (1 March–31 August and 1 September–28 February). The total of 49,000 units is not a randomly chosen figure; it corresponds to the volume imported in the year before the recent trade disputes. You may recall that Canada followed the US in 2024 and imposed additional import tariffs of 100% on electric vehicles from China, effectively halting sales of Chinese EVs in the country.
Now, however, there has been a partial reversal. The volume of vehicles that can be imported at the reduced 6.1 per cent tariff is strictly limited: 49,000 vehicles represent less than 3 per cent of the market for new vehicles sold in Canada. From the 49,001st import onwards, the 100 per cent special import tariff will apply again. However, the quota is expected to increase annually, reaching 70,000 units by 2030. The rule specifically applies to battery-electric vehicles, hybrids, and plug-in hybrids from China.
Canadian officials expect the agreement to “trigger significant new Chinese joint-venture investments in Canada with trusted partners over the next three years, securing and creating jobs in the automotive industry for Canadian workers and ensuring the robust development of Canada’s electric vehicle supply chain,” as stated in an official announcement.
carnewschina.com, ir.group-lotus.com (Hybrid)
