How Chinese Electric Vehicles Could Reshape Canada’s Market

Australia shows how Chinese EVs can rapidly gain market share. The story offers clues to what may happen as Canada opens its doors.

Canada’s electric vehicle market is approaching a turning point that Australia has already passed through. While Canada is still debating how and in what volumes Chinese electric vehicles may enter the country, Australia offers a clear, real-world example of what happens when those cars arrive in force.

China’s automotive industry is under intense pressure at home. The domestic market is crowded, competition is fierce, and many manufacturers struggle to reach profitability without exporting vehicles abroad. Even as major players like BYD remain strong, dozens of other brands are looking overseas to absorb excess production and stabilize sales. Australia has become one of those outlets.

In just a few years, Chinese brands have expanded their share of the Australian car market from roughly 1.7% to around 17%. Their presence is especially pronounced in the EV segment. A large share of electric vehicles sold in Australia are manufactured in China, including models from brands that are not traditionally seen as Chinese. At the same time, more than twenty Chinese marques are now competing across dozens of EV models.

This rise cannot be explained by low prices alone. Chinese automakers entered Australia as local car manufacturing faded and demand grew for affordable, electrified vehicles. Over time, these brands have improved vehicle quality, safety standards, and equipment levels, while also investing in dealer and service networks. Some, such as GWM and Chery, stumbled during early attempts, only to return later with stronger products and more structured market strategies.

Australia’s experience also highlights the limits of rapid expansion. Shipping vehicles is easier than sustaining long-term operations. Service capacity, spare parts availability, and dealer coverage are increasingly decisive factors in determining which brands remain viable and which fade away.

Canada is moving toward a similar moment, but under tighter conditions. Unlike Australia, Canada applies tariffs and import quotas to Chinese electric vehicles. Lower duties paired with capped volumes mean manufacturers will need to be selective about which models they introduce and how deeply they invest. A sudden flood of dozens of brands is unlikely.

Still, Australia’s example sends a clear message. When Chinese electric vehicles gain market access, they can scale quickly—especially in the affordable EV segment. The question is no longer whether they will arrive in Canada, but which brands are prepared to commit for the long term.