Canadian manufacturers are raising concerns about achieving the federal government’s target of 100% zero-emission vehicles by 2035, amidst fears of competition from cheaper Chinese electric vehicles (EVs). David Adams, President and CEO of the Global Automakers of Canada, highlighted the potential risks to Canada’s EV industry, citing an “existential threat” from heavily subsidized Chinese EVs. He expressed this concern in an interview with Canadian Auto Dealer magazine.
Canada is planning a consultation process to explore policy responses, which might include tariffs on Chinese EVs or modifications to the federal Incentives for Zero-Emission Vehicles (iZEV) program, according to Canadian Auto Dealer. Deputy Prime Minister Chrystia Freeland emphasized the need for measures against China’s state-directed overcapacity that could undermine Canada’s EV sector domestically and globally.
The implications of China’s rapid EV export growth were also noted by Niel Hiscox, publisher of Canadian Auto Dealer, who pointed out that Chinese automakers could potentially supply the global market, as they reportedly have a capacity to produce about 50 million cars annually. Hiscox’s comments were made at a Toronto forum organized by 360.agency.
Flavio Volpe, President of the Automobile Parts Manufacturers’ Association, criticized the prospect of quickly accommodating an influx of low-cost Chinese vehicles, arguing that it contradicts a coherent climate strategy. His remarks were shared following Freeland’s announcement, which he discussed in a post on LinkedIn.
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These discussions underline the tension between industrial and environmental policies in Canada’s push for EV adoption, as manufacturing facilities in the country still need time to ramp up and begin significant production. Concerns about affordability for consumers versus the desire to nurture a home-grown automotive industry are central to this complex scenario.
Words by: Craig Clowes
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canadianautodealer.ca
