As the federal government mulls whether to impose tariffs on Chinese electric vehicles, some Canadians say they would jump at the chance to buy a cheaper EV manufactured in that country.
Ottawa held a month-long consultation in July on how to handle Beijing’s powerful presence in the EV sector. Tariffs are among the options on the table.
Michael Wawrykowicz, who lives in Edmonton, uses a small Mitsubishi EV he bought second-hand four years ago for short trips around the city.
“For commuting, it’s been great,” he said in an interview, adding that maintenance costs have been minimal. “In the past couple of years, I’ve only bought tires and washer fluid for it, and I plug it into the block heater at work.”
Wawrykowicz said he would be keen to buy an electric vehicle from China with improved range, if the price was right.
BYD, a Chinese car manufacturing giant, debuted its Seagull EV last year at a starting price of about $14,600 Cdn for a 305-kilometre-range version. The cheapest options available in Canada, by contrast, start at roughly $38,000.
Wawrykowicz was among the callers on CBC’s Cross Country Checkup on Sunday in favour of lower-cost EV options from China.
Cross Country Checkup1:51:20Would you buy an affordable EV made in China?
Barbara MacLellan, who lives in Colwood, B.C., bought her first EV more than a decade ago and has been championing them ever since. She told the radio program that an influx of Chinese vehicles would help spur competition in Canada.
“The problem has been that legacy automakers have not stepped up to the plate on this,” MacLellan said. “It’s not early days. We are late to this. We are seeing the climate change now.”
Questions about China
Others were opposed to opening the market to Chinese EVs, expressing safety concerns or citing China’s human rights record.
Morgan Whittall, a paramedic in Barrie, Ont., argued it doesn’t make sense to buy an EV from a country with such poor environmental policies.
“You’re not really getting what you’re paying for when you’re saying, ‘I’m doing this for climate change,’ but you’re buying it from a place that really isn’t considering how their process is affecting the climate,” he said.
The federal government is starting consultations to determine how Canada can best stop an oversupply of Chinese-made electric vehicles from flooding the Canadian market. But the promise comes long after increased tariffs on the EVs in the EU and the U.S.
The Finance Department’s consultation period wrapped up Aug. 1.
The consultation also included consideration of whether vehicles made in China should be eligible for federal incentives for zero-emission vehicles, such as the rebates of up to $5,000 available to Canadians who buy or lease an EV.
Katherine Cuplinskas, a spokesperson for Finance Minister Chrystia Freeland, said that “all options — including a surtax — are on the table to protect Canadian workers and EV supply chains from unfair competition from China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards.”
“We will have more to say soon.”
High stakes for economy and climate
The stakes are high. Since 2020, Canada has attracted more than $46 billion in investments for 13 electric vehicle, battery and battery component manufacturing projects, according to a June 18 report from the Office of the Parliamentary Budget Officer.
The same report says that Ottawa and the provinces have jointly promised up to $53 billion in return, including tax credits, production subsidies and capital investments. Industry groups, such as the Canadian Vehicle Manufacturers’ Association, warn all of that could be at risk if the industry isn’t protected.
“We are gaining a foothold in this emerging industry, and we’re doing that in partnership with our American partners and allies,” Brian Kingston, the group’s president, told Cross Country Checkup.
“If we do not take action now to give these facilities time to come online to allow manufacturers to build up their production capacity, we put up all that investment at risk.”
Industry groups in the United States have expressed similar concerns. A report earlier this year from the Alliance for American Manufacturing said government-subsidized Chinese EVs “could end up being an extinction-level event for the U.S. auto sector.” The U.S. imposed a 100 per cent tariff on Chinese EVs earlier this year, up from 25 per cent.
Environmental groups, such as Environmental Defence, have argued that blocking the entry of Chinese EVs will make them more expensive, delaying Canada’s transition to a low-carbon economy. Last year, the Liberals committed to end the sale of gasoline and diesel vehicles by 2035.
For now, the only Chinese-made EVs imported into Canada are from U.S.-based Tesla. The vehicles, made at the company’s Shanghai factory, are subject to a six per cent tariff.
But other Chinese automakers, including BYD, are eyeing Canada. The federal lobbyist registry shows that the company hired a consultant last month to advise on the “expected market entry of BYD into Canada,” as well as the application of tariffs on EVs.