Canada’s Chinese EV quota ends first window with nearly 9,000 spots unused

Canada has released what is essentially the final update before the first import window for Chinese-built electric vehicles (EVs) closes, and despite another increase in August, thousands of available quota spots are set to go unused.

According to the latest Global Affairs Canada report, updated August 28, 15,603 of the available 24,500-vehicle quota has now been utilized, leaving 8,897 spots remaining. That means about 64% of the quota has been used with the first six-month window ending August 31.

The previous update, released August 21, showed 15,063 vehicles imported, meaning the total increased by just 540 vehicles over the past week.

All of those additional vehicles were recorded in August, bringing the month’s total from 4,950 to 5,490 vehicles. That puts August within striking distance of July, which remains the busiest month of the first window with 5,982 imports.

Imports Ramp Up in Final Months

It is interesting to note how the program has ramped up since it launched in March. The first two months saw zero imports, which is understandable as it would take time for automakers like Tesla to reorganize supply and logistics to export from China again after a two-year hiatus. The month of May saw the first surge, while things quietened down again in June.

However, July and August have seen even larger surges. Had imports reached similar levels in previous months, the first import-quota window would have been fully utilized.

Nearly 9,000 spots will carry over

But since that didn’t happen, there is virtually no chance the full quota will be utilized with only days remaining in the first window. There would need to be another 8,897 vehicles imported in just 3 days to reach the 24,500 limit.

Those unused spots won’t disappear, however. They will carry over into the second six-month import period beginning September 1, potentially providing considerably more capacity as additional automakers prepare to bring Chinese-built vehicles to Canada.

Based on the August 28 utilization figure of 15,603 vehicles, as many as 33,397 spots could therefore be available on September 1 if no additional imports are recorded before the first window closes.

Second import window could look very different

The second six-month window could end up looking considerably different from the first. Until now, Tesla has likely accounted for the overwhelming majority of imports under the quota. Lotus has imported the Eletre, and Lincoln the Nautilus Hybrid, but those have only amounted to a few hundred vehicles.

That could begin changing soon. Chinese automakers are actively preparing to enter the Canadian market, and BYD could be among the first as last week it launched a dedicated Canadian website carrying a “Coming Soon” message. The company has also been hiring for Canadian positions starting earlier this year covering sales, marketing, dealer network development and other areas, although its website does not yet allow customers to order or reserve a vehicle.