The Chinese automotive industry is on its way up. And this is true both inside and outside China, though its home-market is its current biggest success story. Domestically, analysts are predicting that it won't be long until Chinese brands will outsell foreign brands in that market.
Chinese automakers are quickly developing a reputation for focusing their attention more on the technologies and driver assistance features its buyers want, and less on attributes like power output and handling that still hold the attention of legacy automakers. Chinese automakers also release refreshed and redesigned models far more frequently than the industry average, in some cases at a rate of every one-and-a-half years, or even less.
The Chinese government also offers incentives for its native car manufacturers to focus on electric vehicles and plug-in hybrids with their new cars, which the Chinese call ‘new energy vehicles’.
These same automakers have been gaining a strong foothold in Europe in recent years, due mainly to their ability to deliver affordable and practical EVs. According to data from ABI Research, the European Union imported 1.2 million battery electric vehicles from China in 2023, giving them a significant market share in certain sectors.
So far, there are no concrete signs that an influx of Chinese vehicles is destined for North America. While Chinese automakers began showing their products at key events such as the North American International Auto Show in Detroit more than a decade ago, there has been little movement in the meantime. The Chinese auto industry has some significant hurdles to overcome to enjoy success on our continent. Political tensions around China-North America relations, a lingering import tariff of 27.5 percent on Chinese cars, and tax credits for Americans who buy EVs built in the United States are making Chinese launches south of the border increasingly unlikely. Any car companies that can’t break through in the U.S. are unlikely to take a solo run at the significantly smaller auto market in Canada.
Still, the rumors endure, and it’s not completely unreasonable to suggest a Chinese car brand might land on our shores in the not-too-distant future. And you only need to look at the history of car brands from Japan or Korea arriving in the North American car market to see the likelihood of the Chinese automobile industry performing the same trick. Here’s a look at the automotive brands from China we think Canadians are most likely to see on our roads within the next few years—depending on relations between Washington and Beijing, of course...
The Chinese Automakers that Could be Coming to Canada
- BYD Co.
- NIO
- Chery Automobile Co.
- SAIC Motor
- Changan Automobile
- Skywell
- GAC Motor
- Great Wall Motor Company
- XPeng Motors
- Geely
BYD Co.
BYD stands for Build Your Dreams, and the company is famously backed by the hugely successful American investor Warren Buffett. BYD has made a name for itself with low-cost EVs such as the Seagull, a subcompact hatchback with more than 300 kilometres of range that sells for the equivalent of less than $20,000.
We predict BYD is the car maker most likely to appear in North America in the near future. Mainly because it’s already here. Electric buses, taxis, and other commercial vehicles carrying the BYD brand are on roads in Canadian cities, including Toronto, Montreal, and Vancouver. BYD has been actively studying how to effectively launch its consumer products in North America and appears the most likely to attempt it.
NIO
NIO launched in 2016 with its all-electric NIO EP9 sports car. Since then, the car manufacturer has earned a strong reputation and has expanded its line-up to include a variety of cars and SUVs. The NIO logo was registered as a Canadian trademark in 2021, though companies often do this so they can defend their brands in markets they have no active intention to enter. The best hint we have that NIO may be destined for Canada is the automaker’s reported plans to enter the US by 2025, though no official word has ever connected Canada to this rollout strategy.
Chery Automobile Co.
Chery Automobile Co. is a Chinese state-owned automaker founded in 1997. It sells a line-up of cars, SUVs, and minivans, and it’s a top vehicle exporter in China that frequently does so via knock-down kits that are shipped in parts and assembled at their final destination.
Rumours have been swirling for the past few years—and at times substantiated by company executives—that Chery plans to enter North America using the Vantas brand, including in Canada. This was originally slated for 2021, though the most recent word from a Chery representative is that these plans are still in the works with no firm date attached.
SAIC Motor
SAIC Motor—SAIC stands for Shanghai Automotive Industry Corporation—is a state-owned company and is China’s largest automaker. It was founded in 1955 and is best known outside China for its joint venture agreements that allow foreign automakers to sell their brands within the country, including with General Motors and Volkswagen. While SAIC currently owns the legacy British marque MG and sells EVs, hybrids and regular gas cars in Europe under that brand as well as commercial vehicles under the Maxus brand, there are currently no clear indications the automaker intends to enter the North American market with the MG brand or otherwise. However, the possibility of an eventual arrival merits consideration, given the automaker’s size and scope.
Changan Automobile
Changan is the smallest of China’s “big four” automakers, a list that also includes SAIC, Dongfeng and FAW Group (Which makes Hongqi luxury cars as used by president Xi Jinping, and Dongfeng. (We’ve left the latter two off this list as there are no indications either has designs on a North American launch.) Changan operates joint ventures in the Chinese market with several large automotive brands, including Ford and Mazda. The company primarily produces sedans and SUVs, and it has announced plans to end production of internal-combustion engine vehicles by 2025 to focus on hybrids and electrics. Changan announced a small launch of 30 vehicles in Canada by the end of 2023 in collaboration with a Mississauga, Ontario-based company producing electric products called Electrovaya. The automaker reportedly aspires to a broader, solo launch in the future, though no details or timelines have yet been provided.
Skywell
This is an interesting one. Back in early 2022, a SUV carrying the brand name Imperium parachuted into Canada. The company gave members of the automotive media a chance to test drive this electric SUV, which was also shown at Canadian electric vehicle shows to rave reviews and several hundred pre-orders. These units were rebranded versions of a vehicle sold under the name Skywell in China. Since then, Skywell has launched an automotive subsidiary called Skyworth Auto, Imperium has been completely rebranded in North America as Liteborne Motor Corporation, and the Liteborne Aurium SEV is still ostensibly slated for a North American launch sometime soon, including specific plans for Canada. Pricing is available—$37,995 for the base Comfort model with a 55kWh battery and $44,995 for the Premium model with a 72kWh battery—but so far there are no details to be found around delivery timelines or future sales plans.
GAC Motor
Guangzhou Automobile Group Co., Ltd. (GAC Group), was founded in 1954 as a Chinese state-owned automobile manufacturer. Within China, it’s the fifth-largest automaker and sells vehicles under several sub-brands in addition to having domestic joint venture agreements with Toyota, Honda, and Mitsubishi. Up until 2019, GAC Motor was actively working on plans to enter the North American market. Today, the automaker exports Dodge-branded vehicles to Mexico, but initiatives beyond that have stalled due to souring China-U.S. relations. Should the environment change, expect to see GAC Motor resume a strong interest in expansion into North America.
Great Wall Motor Company
As a privately owned Chinese automaker that specializes in internal combustion and PHEV SUVs and trucks, Great Wall Motor Company appears well-positioned to consider a run in North America. Great Wall also markets vehicles under the GWM and Haval brands, among others. Rumors that the brand is planning a full-steam-ahead push into the U.S. and Canada, up to and including building a manufacturing facility south of the border, have been swirling for more than a decade. Like others, however, the impetus from Great Wall appears to have been dampened by the current trade climate. It wouldn’t be a surprise to see this interest rekindled down the road.
XPeng Motors
XPeng is a Chinese EV startup manufacturer founded in 2014 by two former executives from GAC Group. With offices in Mountain View, California, and active trading on the New York Stock Exchange, XPeng has established a footing in North America that’s been bolstered by on-road testing of its autonomous driving technologies. Its products have been launched at the Consumer Electronics Show, and it counts Alibaba, Foxconn, IDG Global, and Volkswagen Group among its investors. In other words, all signs point to XPeng being the real deal. The current market has been a hindrance, but company executives are on record as saying XPeng has global aspirations, which would naturally at some stage need to include North America and Canada.
Geely
We left this one until last for its potential shock value: there’s one Chinese automaker that’s already selling cars and doing business in North America, though you may not yet realize it. Geely is a privately owned Chinese automaker that builds cars under several brand names, including Volvo, which it purchased from Ford Motor Company in 2010. Most Volvo vehicles sold in Canada are assembled in Sweden, but vehicles from the associated Polestar brand sold here are built in China. Geely also owns the Lotus brand, though those are still assembled in Norfolk in the United Kingdom. Another Geely brand, Lynk & Co.—which notoriously sounds very similar to Lincoln Co.—is still regularly connected to rumours of a North American launch for its EVs.
