CALGARY — A federal delegation visiting China encouraged electric vehicle giant BYD to generate more demand for its cars in Canada and consider establishing production operations here, according to a newly released report to Parliament.The visit came as Canadian automakers warned that Ottawa’s guaranteed five-year quota allowing 278,989 Chinese electric vehicles into the country could threaten domestic manufacturing jobs, according to Blacklock’s Reporter.Liberal MP Zoe Royer, who represents Port Moody—Coquitlam, BC, and Quebec Senator Clément Gignac toured a BYD factory in Shenzhen on March 19. The two serve as co-chairs of the Canada-China Legislative Association and were accompanied by a single staff member.“They noted the objective of encouraging Chinese investments and underlined the opportunity for BYD to increase demand for its vehicles and invest in production capabilities in Canada,” said the report, Co-Chairs’ Annual Visit To China.The report did not explain how BYD or other Chinese manufacturers might increase Canadian demand for their vehicles.A day earlier, Royer and Gignac met with representatives of the Canadian Chamber of Commerce in Shanghai, where discussions also focused on bringing Chinese electric vehicles and manufacturers into the Canadian market.“Representatives of the Canadian Chamber of Commerce in Shanghai identified ways in which government-to-government relations between Canada and China in recent years harmed opportunities for Canadian businesses, but pointed out they are hopeful this situation has changed,” the report said..Joly says Chinese automakers eager to enter Canadian EV market .Chamber representatives also reportedly told the delegation that China’s political environment was more predictable than those of other countries, making it beneficial for Canadian companies weighing long-term spending decisions.“The co-chairs discussed the electric vehicle supply chain, Canada’s place in Chinese EV manufacturers’ globalization efforts and those manufacturers’ willingness to spend in Canada’s automotive sector,” said the report.Automakers already producing vehicles in Canada warned the Commons industry committee on April 27 that allowing Chinese EV imports under the quota could undermine domestic factories and cost Canadian jobs.“Unfettered access, even if limited by quotas, will weaken Canada’s ability to protect its people, its national interests and its automotive industrial and technology base,” said Sarah Goldfeder, executive director of government relations for General Motors Canada.Goldfeder said GM was Canada’s leading electric vehicle seller, holding just under 20% of the domestic market after selling slightly more than 4,000 EVs during the first quarter of the year.“Put differently, 49,000 Chinese electric vehicles this year would equate to one-third of the current market,” she said.Brendan Sweeney, CEO of the Pacific Manufacturing Association of Canada, which represents Honda and Toyota, said importing Chinese vehicles through a guaranteed quota was not the right approach.“There are ways to do business with Chinese companies, but we do not believe a vehicle import quota is the best option,” said Sweeney.Honda and Toyota are Canada’s two largest vehicle manufacturers, accounting for 77% of the country’s annual automotive output, he said. Both companies have operated Canadian production facilities since 1986.Sweeney said the agreement would reverse Ottawa’s 2024 decision to impose a surtax on Chinese electric vehicles and grant non-market manufacturers access to the Canadian market.“This undermines investments,” he said.
