China’s electric vehicle industry has become a global force, and its impact is sending shock waves through established automakers and governments in North America, according to an industry analyst.
James Carter from Vision Mobility highlighted the speed at which Chinese companies are bringing vehicles to market. Companies like BYD and Zeekr can “drastically improve product, still low cost, massive rise in global exports” during the Automotive Aftermarket Retailers of Ontario 2025 Symposium.
“China is an automotive powerhouse, and they have become an automotive powerhouse extremely quickly,” Carter said.
He further shared how China’s growth has been fuelled by rapid production cycles and increases in exports. But Carter said China’s dominance does not stop at car assembly. They may not have all the minerals needed but “they completely control the supply chain, and this is important.”
He noted this control is prompting countries like Canada to knit together local supply chains for security.
Carter explained that tariffs imposed by the United States and Canada — 100 per cent tariffs on China’s vehicles — currently shield domestic markets from cheaper Chinese EVs, but the measures come with a price.
“They create inefficient OEMs. In other words, that competition is being protected,” Carter observed.
So OEMs can bring in whatever they like without the fear of being outdone, he added.
Carter described the escalating economic pushback between Canada and China, with the latter imposing tariffs on Canadian canola oil. China is the biggest market for the product for Canada.
“These tariffs have deeply hurt the prairies out there,” Carter noted.
Looking ahead, Carter predicted changes in this standoff. There will be some sort of arrangement made that could dramatically change things. Pay attention to the political machinations, he advised.
“We will definitely see Chinese vehicles coming to Canada in the next one to two years,” he predicted, with possible encouragement of Chinese vehicle manufacturing in Canada.
“I think it means to be remain to be seen, but keep an eye on the news,” he said.
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