BYD Plans 20 Canadian Dealerships Following Tariff Reversal

BYD is moving fast to establish a physical retail presence in Canada, with plans to open 20 branded dealerships within its first year in the market. The Globe and Mail reported on March 18, 2026, that the world’s largest EV maker is already scouting locations in the Greater Toronto Area.

The push comes just two months after Canada slashed its 100% tariff on Chinese-built EVs to 6.1%, a dramatic policy reversal that has unlocked the Canadian market for Chinese automakers for the first time.

BYD has hired Dealer Solutions Mergers and Acquisitions, a Markham, Ontario-based automotive retail consultancy, to find dealership locations across the country. The firm’s CEO, Farid Ahmad, confirmed that BYD is targeting approximately 20 stores within its first year of Canadian operations. Three potential locations in the Greater Toronto Area are already under discussion. After establishing a GTA footprint, BYD plans to expand into Vancouver, Montreal and Calgary, covering Canada’s four largest metro areas. Chery Automobile is also working with dealers to establish branded showrooms, with both companies planning independent dealership networks rather than sharing retail space with existing brands.

The dealership push is a direct consequence of the trade deal Canada struck with China in January, which cut the tariff on Chinese-built EVs from 100% down to 6.1%, but with strict limits. The deal caps imports at 49,000 Chinese-made EVs in the first year, with a second application window from September 2026 to February 2027 allowing another 24,500 vehicles plus any unused permits from the first phase.

The quota rises gradually to 70,000 units by 2030, and more than half of those vehicles are expected to carry import prices below $35,000. In exchange, China reduced tariffs on Canadian agricultural exports including canola, lobster, crab and peas. The deal also requires Chinese automakers to establish joint ventures for vehicles or batteries within Canada within three years. The 49,000-unit cap represents less than 3% of Canada’s annual new car market, raising real questions about whether 20 dealership locations can sustain healthy volumes when total available supply is capped at under 50,000 units split across multiple brands.

The Canadian EV market contracted sharply in 2025, with battery-electric sales falling roughly 25% year-over-year to around 85,000 units, driven by the suspension of federal incentive programmes and broader economic uncertainty. Tesla saw its Canadian sales collapse by more than 60% to roughly 18,000 units, with GM overtaking it as Canada’s top-selling EV brand and Hyundai and Kia gaining significant ground.

BYD enters this weakened market as the world’s largest EV manufacturer, having sold 2.26 million battery-electric vehicles globally in 2025, outselling Tesla’s 1.64 million to claim the global BEV crown for the first full calendar year. Overseas sales alone surpassed 1 million units, up 150% year-over-year. The company has not disclosed which models it will bring to Canada, though the trade deal’s emphasis on sub-$35,000 vehicles suggests affordable options like the Atto 3 compact SUV or the Dolphin hatchback could be prioritised, exactly the kind of affordable EVs the Canadian market lacks. BYD had originally planned to enter Canada in 2024 but shelved those plans after Ottawa imposed the 100% tariff in August of that year. The company has also signalled openness to building cars in Canada and acquiring a rival automaker, with Executive VP Stella Li telling Bloomberg that BYD would insist on owning and operating any Canadian factory outright.

The 49,000-unit import cap is the key constraint, applying across all Chinese automakers. With Chery also entering the market, Tesla wanting some of that capacity for Model 3s built in Shanghai, and potentially others, BYD’s actual allocation could be well under 10,000 units in year one. That is thin volume for 20 stores. But BYD is clearly betting that the quota will expand, and that having physical retail infrastructure in place when it does will be a massive first-mover advantage over Chinese competitors who waited. For Canadian consumers, if BYD brings models priced in the $30,000 to $40,000 CAD range, it will fill a significant gap and put real competitive pressure on every incumbent.