BYD and Chery are building dealership networks in Canada, starting with the Greater Toronto Area and expanding to Vancouver, Montreal, and Calgary. BYD's target: 20 branded locations in the first year of operation.
The push follows Canada's restructured tariff regime, which created a quota allowing 24,500 Chinese-built EVs into the country at a reduced duty rate of 6.1 percent. That's a dramatic change from the prohibitive tariffs that previously locked Chinese automakers out of the market. The new math makes a physical retail presence viable for the first time.
Toronto First, Then Coast to Coast
According to Farid Ahmad, CEO of Dealer Solutions Mergers & Acquisitions, BYD has engaged his firm to locate as many of the 20 planned dealerships as possible. The automaker is also running its own parallel search. Ahmad told The Globe and Mail that multiple Chinese manufacturers are interested, with Chery among the confirmed brands.
The strategy mirrors what both companies have done in other markets: establish independent, branded showrooms rather than piggyback on existing multi-brand dealers. BYD used the same approach in Australia, where it now operates through a growing network of standalone stores.
The Quota Problem
The 24,500-unit quota is both the opportunity and the constraint. Spread across all Chinese manufacturers allowed into Canada, that volume may not sustain 20+ dealerships operating at the margins Canadian dealers are accustomed to. A typical Canadian dealership moves 400 to 800 new units per year. If BYD captures half the quota (roughly 12,000 units), 20 stores would average 600 cars each. Tight, but workable.
Chery's position is less clear. The company sells the Omoda and Jaecoo brands in several markets but hasn't disclosed Canadian volume targets. If multiple brands compete for the same 24,500-unit pool, the economics become significantly thinner.
Canada's EV adoption rate continues to climb, with battery-electric vehicles representing 11.4 percent of new registrations in the most recent quarter. BYD's global pricing advantage, where models like the Seal and Atto 3 typically undercut segment rivals by 15-20 percent, could find a receptive audience. First vehicles are expected to arrive in Canadian showrooms before the end of 2026.